Nintendo revealed on Tuesday its intention to unveil the successor to its popular Switch console within the current fiscal year. This decision follows a projection of a significant decline in profit due to the anticipated decrease in sales of the aging Switch console. The new gaming system is expected to be introduced by the end of March 2025, according to statements made by Nintendo President Shuntaro Furukawa.
Despite the announcement of the successor to the Switch, Nintendo clarified that no specific details regarding the new console will be shared during the upcoming Nintendo Direct event scheduled for June. This move has left many fans and analysts speculating about the features and capabilities of the upcoming gaming system.
Nintendo recently reported its financial results for the fourth quarter and full fiscal year ending in March 2024. While the company surpassed its sales forecast for the flagship Switch console, selling 15.7 million units instead of the anticipated 15.5 million units, it expects a decrease in sales to 13.5 million units for the fiscal year ending in March 2025. This adjustment in sales forecast reflects the company’s strategy to introduce a new console to reinvigorate interest in its hardware business.
Investors have been eagerly awaiting updates from Nintendo regarding the successor to the Switch, which has been on the market for over seven years. Analysts previously speculated that a new console, possibly named Switch 2, would be launched in 2024. Nintendo’s ability to prolong the lifespan of the current Switch through the release of popular titles like “The Legend of Zelda: Tears of the Kingdom” and “Super Mario Bros. Wonder” has been commendable. However, with a limited games pipeline for the upcoming year, the company is banking on the introduction of a new console to boost sales.
Nintendo’s financial forecast for the fiscal year ending in March 2025 indicates a significant decline in profit, with a projected net profit of 300 billion yen on net sales of 1.35 trillion yen. These figures represent a 39% year-on-year profit decrease, falling short of analysts’ estimates provided by LSEG. The company’s performance in the fourth quarter of the fiscal year revealed a revenue of 277.1 billion Japanese yen, slightly below the expected 280.6 billion yen, while net profit exceeded expectations at 82.6 billion yen compared to the forecasted 57.2 billion yen.
For the full fiscal year ending in March 2024, Nintendo achieved a sales revenue of 1.7 trillion yen, surpassing analyst estimates and marking a 4.4% year-on-year increase. Additionally, the company reported a net profit of 490.6 billion yen, exceeding market expectations and demonstrating a 13.4% year-on-year growth. These financial results indicate the company’s resilience in the face of changing market dynamics and its ability to adapt to evolving consumer preferences.