By Sam Nussey and Kiyoshi Takenaka
TOKYO (Reuters) – Nintendo Corp said on Tuesday it sees sales of its Switch console falling further to 15 million units in the fiscal year to the end of March 2024, a 17% year-on-year decline, which would be the third consecutive year of decline.
The games company acknowledged the slowdown in demand for the video game, now in its seventh year on the market, even as supply chain issues eased and the company strengthened its game catalog.
“It’s difficult for Switch hardware and software sales to keep pace,” Nintendo president Shuntaro Furukawa told a press conference, adding that he still sees room for new users to come to the hybrid home/portable device.
With Switch sales slowing, investors’ attention is focused on a potential successor to the device, which has sold more than 125 million units.
“Based on guidance, it’s pretty clear that a ‘Switch 2’ release or brand new hardware can be ruled out this fiscal year,” said Serkan Toto, founder of consultancy Kantan Games.
The strong appeal of Nintendo’s roster of characters has been underscored in recent weeks by the box office success of “Super Mario Bros,” which is helping the company diversify beyond its core console business.
The film exceeded expectations, Furukawa said.
On Friday, the company will release “The Legend of Zelda: Tears of the Kingdom,” one of the most anticipated games of the year. Orders for the game are progressing well, Furukawa said.
Nintendo said operating profit fell 15% from a year earlier to 504.38 billion yen ($3.73 billion) in the year ended in March. The company predicts that profit will fall 11% to 450 billion yen in the current fiscal year.
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