Gamers are still buying the Switch console in their millions, as its successor appears on the horizon
Sales of the 7-year-old Switch console are holding up better than Nintendo expected, as the Japanese company reported shifting 15.7 million units of the display-diverse device in the 12 months to March 2024, beating its own predictions.
More importantly, however, Nintendo finally gave something of update on the Switch’s successor, which is now set to be announced in the coming fiscal year.
Although Switch sales have stayed surprisingly strong... they’re still falling, highlighting how difficult the business of game hardware can be. You need a new hit every 7-10 years, as sales typically peak 3-5 years after release before dropping sharply. That slowdown is beginning to flow through to Nintendo’s bottom line, with the company forecasting a ~40% annual drop in profit this year, per CNBC. The Switch sequel, whatever it looks like, has some big shoes to fill.
More importantly, however, Nintendo finally gave something of update on the Switch’s successor, which is now set to be announced in the coming fiscal year.
Although Switch sales have stayed surprisingly strong... they’re still falling, highlighting how difficult the business of game hardware can be. You need a new hit every 7-10 years, as sales typically peak 3-5 years after release before dropping sharply. That slowdown is beginning to flow through to Nintendo’s bottom line, with the company forecasting a ~40% annual drop in profit this year, per CNBC. The Switch sequel, whatever it looks like, has some big shoes to fill.
