Nintendo of Japan announced on Tuesday that it intends to reveal details regarding the successor to its highly successful Switch console during the financial year concluding in March 2025.
The company has managed to extend the Switch’s lifecycle through popular titles including The Legend of Zelda: Tears of the Kingdom, while the market is keenly observing how Nintendo will navigate the transition to its next-generation hardware.
In its latest forecast, the Kyoto-based gaming giant anticipates selling 13.5 million Switch units in the current financial year, as it endeavors to maximize sales from the aging console.
Nintendo did not provide specific information on the upcoming hardware, clarifying that no new details would be revealed at the Nintendo Direct presentation slated for June.
Market analyst Serkan Toto, founder of Kantan Games, noted, “A lot of users will now hold off buying the current Switch as they know that the new model will come out sometime in 2025.”
Last year, Nintendo sold 15.7 million units of the hybrid console, which debuted in March 2017. The company also raised its full-year sales forecast to 15.5 million units in February.
While incremental improvements have been made to the Switch, including the popular OLED model, overall hardware sales have been declining annually.
Nintendo projects that its operating profit will decrease this year by approximately 25% to JPY 400 billion, which equates to around $2.6 billion or about Rs. 21,713 crore.
Analysts note that the company seems to have a limited catalog of upcoming releases, holding back major titles to coincide with the arrival of the new hardware. Announced titles include Paper Mario: The Thousand-Year Door, expected later this month, and Luigi’s Mansion 2, set for June.
The gaming company aims to sell 165 million software units this year, representing a 17% drop compared to the previous year.
Nintendo President Shuntaro Furukawa commented on the evolving market, stating, “The development of games has become more sophisticated, long term, and complex,” in relation to how the industry has shifted since the Switch’s launch.
For the fiscal year ending in March, Nintendo’s operating profit saw a 4.9% increase, reaching JPY 528.9 billion.
Prior to earnings announcements, Nintendo’s stock rose by 2.4% and is up 5.4% this year despite a recent dip in prices.
Serkan Toto remarked, “Fiscal 2026 is a very late launch window for new hardware.”
© Thomson Reuters 2024
