Nintendo boosts Switch sales forecast, hints at new hardware launch

Nintendo has elevated its full-year Switch sales forecast to 15.5 million units, up from the previous estimate of 15 million units, driven by robust sales during the year-end shopping season.

The Kyoto-based gaming giant aims to sustain the momentum of its hybrid home-portable Switch, which is approaching its eighth year on the market.

Nintendo President Shuntaro Furukawa emphasised the company's commitment to the Switch business during an earnings briefing, indicating a proactive stance in maintaining the console's popularity.

Despite an 8 per cent decline in Switch sales, with 13.74 million units sold in the first nine months of the financial year compared to the previous year, the console's lifecycle has been prolonged by successful game releases.

Hits like "The Legend of Zelda: Tears of the Kingdom" and "Super Mario Bros. Wonder" have contributed to the console's enduring appeal.

The Switch, available in various iterations including the handheld-only Switch Lite and a version with an OLED display, has surpassed the poorly performing Wii U and boasts total sales second only to the Nintendo DS handheld, having overtaken the Wii.

Nintendo's financial performance tells a success story, with a record net profit of 408 billion yen reported for the April-December period.

The company's ability to leverage existing hardware and capitalise on compelling game releases has resulted in a flourishing bottom line.

Industry experts foresee continued success, with Serkan Toto, founder of game industry consultancy Kantan Games, anticipating new Switch games and hinting at a successor device launching later this year, priced around $400.

This speculation aligns with rising expectations for Nintendo to introduce new hardware in 2024.

The buoyant market response is reflected in Nintendo's stock performance, with shares closing down a marginal 0.5 per cent ahead of earnings but boasting a 14 per cent gain year-to-date.

(With inputs from Reuters)