Nintendo’s decline in the number of Switch game consoles to be shipped in the current fiscal year by one million units can be explained by a decline in interest in the platform, which appeared on the market seven years ago. At the same time, the company states that games for the current Nintendo Switch can be played on its successor.
Image source: Nintendo
According to Bloomberg, the corresponding comments were made by Nintendo representatives at the quarterly reporting event. In addition, Nintendo’s next-generation console will support the company’s online gaming services, as noted in the briefing materials. The developer promised to publish more detailed information about the successor to the Nintendo Switch later. One way or another, Nintendo’s willingness to talk about a successor to the Switch inspired investors, and the company’s shares rose in price by 4.7%.
The Nintendo Switch, which is in the final stages of its life cycle, has forced the company to accept declining profits for the past five quarters. Nintendo recently had to revise its annual revenue and profit forecast downwards for relevant reasons. Operating profit for the fiscal year ending at the end of March will be 10% lower than the previous forecast, falling to $2.4 billion; in the last quarter, it fell by 29%, unpleasantly surprising investors. Now, at the end of the fiscal year, Nintendo expects to sell only 12.5 million Switch game consoles instead of the originally planned 13.5 million units.