Nintendo has announced that it expects a decline in sales for its aging Switch console, projecting 15 million units sold in the financial year ending in March 2024. This marks a 17 percent annual drop and continues the trend of consecutive years of decline.
Despite supply chain issues being resolved and an expanded game lineup, Nintendo acknowledges the slowing demand for the Switch, which has been on the market for seven years. However, Nintendo President Shuntaro Furukawa remains optimistic, stating that there is still potential for new users to embrace the hybrid home/portable device.
As Switch sales decline, investors are speculating about a potential successor to the device. Serkan Toto, founder of Kantan Games consultancy, believes that a Switch 2 or entirely new hardware release is unlikely in the current fiscal year.
In recent weeks, Nintendo’s strong roster of characters has been highlighted by the box office success of The Super Mario Bros. Movie, demonstrating the company’s ability to diversify beyond its core console business.
Furukawa also revealed that the highly anticipated game, The Legend of Zelda: Tears of the Kingdom, is progressing well with orders.
However, Nintendo reported a 15 percent decline in operating profit for the previous year, totaling 504.38 billion yen ($3.73 billion). The company forecasts an 11 percent decrease in profit for the current financial year, expecting it to reach 450 billion yen.
© Thomson Reuters 2023
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