Nintendo announced on Tuesday its intention to unveil the successor to its flagship Switch console within the current fiscal year, following a projection of a significant decline in profit. The new Switch model is expected to be announced by the end of March 2025, as confirmed by Nintendo President Shuntaro Furukawa.
The company surpassed its own forecasts by selling 15.7 million units of the flagship Switch console in the fiscal year ended March 2024. However, Nintendo anticipates a decrease in sales, projecting to sell 13.5 million Switch consoles in the fiscal year ending March 2025.
Investor attention has been keenly focused on any updates regarding the successor to the Switch, which has been on the market for over seven years. While analysts speculated earlier this year about the launch of a Switch 2 in 2024, Nintendo has remained reserved about disclosing details regarding the new console.
Nintendo’s ability to prolong the life cycle of the current Switch was attributed to the release of blockbuster titles such as “The Legend of Zelda: Tears of the Kingdom” and “Super Mario Bros. Wonder” in the previous year. However, the company’s game pipeline for the current year appears relatively thin.
With plans for a new console underway, Nintendo aims to leverage the popularity of its iconic characters to rejuvenate sales in its hardware division.
The company’s financial outlook reflects the impact of the aging Switch console. For the fiscal year ending March 2025, Nintendo forecasts net sales of 1.35 trillion yen and net profit of 300 billion yen, marking a significant decline compared to previous estimates. Nintendo’s fiscal fourth-quarter revenue declined nearly 10% year-on-year, while net profit dropped 4.5%.
In summary, Nintendo reported sales totaling 1.7 trillion yen for the full fiscal year ended March 2024, exceeding analyst expectations, with net profit reaching 490.6 billion yen, reflecting a 13.4% increase year-on-year.
