Nintendo of Japan said on Tuesday that it expects sales of its outdated Switch platform to fall even further to 15 million units in the fiscal year ending in March 2024, a 17% annual loss that would be the third straight year of decline.
Even while supply chain bottlenecks have alleviated and the company is expanding its game lineup, the Kyoto-based gaming company recognized that demand for Switch, which is now in its seventh year on the market, is declining.
Shuntaro Furukawa, president of Nintendo, stated during a press conference that it is challenging for Switch hardware and software sales to continue at the same rate, but he still believes there is opportunity for more people to use the hybrid home/portable device.
Investor focus is on a potential Switch successor as sales of the device, which have sold more than 125 million devices, are decreasing.
Serkan Toto, the founder of the Kantan Games consultancy, stated: “Based on the guidance, it is crystal clear the launch of a ‘Switch 2’ or entirely new piece of hardware can be ruled out this fiscal year.”
The film office success of “The Super Mario Bros. Movie” in recent weeks has shown the broad appeal of Nintendo’s cast of characters and is aiding the company in expanding beyond its core console business.
Furukawa claimed that the film did better than anticipated.
In the meantime, Nintendo said that operating profit for the year ended in March declined 15% year over year to 504.38 trillion yen ($3.73 billion). The corporation expects its profit for the current fiscal year to drop 11% to 450 billion yen.