Nintendo announced that it will reveal the successor to its flagship Switch console in the fiscal year ending March 2025. The company’s President, Shuntaro Furukawa, confirmed this in a statement. However, no details about the new console will be revealed at the upcoming Nintendo Direct event in June. Nintendo reported financial results for the fiscal fourth quarter and full year ended March 2024, with sales of 15.7 million units of the Switch exceeding expectations.
Despite beating its sales forecasts for the fiscal year ended March, Nintendo expects to sell 13.5 million Switch consoles in the fiscal year ending March 2025. Analysts have been anticipating the launch of a successor to the Switch, which is now over seven years old. The release of popular games like “The Legend of Zelda: Tears of the Kingdom” and “Super Mario Bros. Wonder” in the previous year helped boost interest in the console. With a new console on the horizon, Nintendo plans to leverage its iconic characters and rejuvenate its hardware business.
Nintendo’s financial forecasts for the fiscal year ending March 2025 indicate a significant decline in net sales and profit compared to the previous year. The company’s revenue for the fiscal fourth quarter was slightly lower than analyst estimates, with a 10% year-on-year decrease. However, net profit exceeded expectations, increasing by 4.5%. For the full fiscal year ended March 2024, Nintendo’s sales totalled 1.7 trillion yen, marking a 4.4% year-on-year increase, while net profit reached 490.6 billion yen, up 13.4% year-on-year.
Investors have been eagerly awaiting news of a Switch successor from Nintendo, with analysts previously predicting a launch in 2024. The success of recent game releases has helped sustain interest in the current Switch console. While Nintendo’s game pipeline for the current year appears thin, the upcoming new console is expected to generate renewed excitement and drive hardware sales. With the strong appeal of its beloved characters, Nintendo aims to capitalize on consumer interest and maintain its position in the gaming market.
The new console announcement comes as the age of the current Switch begins to impact Nintendo’s financial outlook. The company’s forecast for the fiscal year ending March 2025 signals a 39% year-on-year decline in profit, falling short of analyst estimates. Despite facing challenges, Nintendo continues to innovate and maintain its relevance in the gaming industry. The anticipation surrounding the release of the successor to the Switch underscores the ongoing interest in Nintendo’s products and the brand’s enduring appeal to fans around the world.
