Nintendo Co Ltd (7974.T) forecast a 17% drop in Switch sales to 15 million on Tuesday in the financial year ending March 2024, marking a third straight year of decrease.
The Kyoto-based gaming giant revealed the diminishing demand for Switch, now in its seventh year on the market, even as supply chain snarls have eased and the business extends its games portfolio.
“It’s difficult for Switch hardware and software sales to maintain the same pace,” Nintendo President Shuntaro Furukawa told a news conference, but he sees an opportunity for new customers.
Investors want a Switch successor as sales fall.
“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,” said Kantan Games founder Serkan Toto.
Thanks to “The Super Mario Bros. Movie”‘s box office success, Nintendo can go beyond consoles.
The film exceeded Furukawa’s expectations.
Nintendo publishes “The Legend of Zelda: Tears of the Kingdom” Friday. Furukawa gave solid game commands.
For Nintendo, March’s operating profit fell 15% to 504.38 billion yen ($3.73 billion). Profit is expected to decline 11% to 450 billion yen this year.
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