On Tuesday, Nintendo Co Ltd (7974.T) estimated a 17% reduction in Switch sales to 15 million in the financial year ending March 2024, the third consecutive year of decline.
Even as supply chain issues have improved and the Kyoto-based gaming giant expands its games library, Switch demand is declining in its seventh year on the market.
“It’s difficult for Switch hardware and software sales to maintain the same pace,” Nintendo President Shuntaro Furukawa told a press conference, but he sees an opportunity for new customers. In addition, investors want a Switch replacement as sales decline.
“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,” stated Kantan Games founder Serkan Toto.
Nintendo may go beyond consoles with “The Super Mario Bros. Movie”‘s movie office success. Furukawa was impressed.
Nintendo releases “The Legend of Zelda: Tears of the Kingdom” Friday. Furukawa called good games.
Nintendo’s March operating profit declined 15% to 504.38 billion yen ($3.73 billion). Profit will fall 11% to 450 billion yen this year.