How long can Nintendo delay ‘Switch 2’ as sales of Switch hardware are slow?

Image: Nintendo Life / Zion Crossl

Of Nintendo Report The fiscal year 2021/22 fell today, and while the switch continues to sell well and software sales remain healthy, there are clear signs that enthusiasm for the five-year-old system is beginning to wane. To be clear, the results are far from a gloomy outlook for the console and the company, but the numbers show a 20% decline in year-over-year sales. The company predicts Will decrease further in the coming year.

In real numbers, Lifetime switch sale It now has 107.65 million units, up from just 23 million units last year. The console’s sales in the last fiscal year (the number of units sold to consumers at retail, as opposed to the number shipped to retail outlets) are second only to console release year. Digital sales rose 4.5% in fiscal 2021, recording the second-highest digital sales quarter in the January-March ’22 quarter – a disgrace to the previous lucrative holiday ’21 season. Now in Kyoto it is certainly not destruction and darkness.

While the system is still alive, there are definite signs that the switch has reached its peak. Nintendo predicts sales of hardware will reach 21 million units in the coming year, and although 3 million more than the Sony PS5, distribution barriers for the more powerful console are worse – and Sony’s FY 2022 forecast has risen significantly. It sold 11.5 million PS5s in the last fiscal year. Keep in mind that PS5s are still like chicken teeth in retail 18 months after they were introduced.

Although Nintendo has difficulty making enough hardware, the need for a hybrid console is healthy, given its age. There is Slowly. There are more than 107 million switches in the woods, and as that number continues to grow, the gaming industry is building at speed, and at this point the switch is the most well-known size.

See also  Russia-Ukraine war: What we know on the 101st day of the invasion | Ukraine
Change games
There is no shortage of games to play, that is for sure (Image: Nintendo Life)

Nintendo really has one thing to re-elevate those investor maps: the arrival of new, properly upgraded Switch hardware.

Global chip shortages and rising production costs undoubtedly affect Nintendo’s profits, and the lower profit margin on Switch OLED is cited as a factor contributing to the company’s average annual profit margin of 0.6%. Regardless of the overall rosinus, however, the minus numbers were happy investor reading and switching OLED, a welcome shot in hand, was a stop-break.

Nintendo really has one thing to re-elevate those investor maps: the arrival of new, properly upgraded Switch hardware.

The The long-rumored switch ‘Pro’ Or Switch 2 (or whatever you call the successor to the current model) has been at the tip of the analyst’s tongue for years at this point. Video game hardware rotation, scrolling and power shortages between switches and consoles between Microsoft and Sony – Nintendo was the precursor to the mid-cycle, half-step console upgrade with its portable systems – have been common since the switch was relaunched in 2017 by the new SKU.

No matter what hardcore enthusiasts and analysts say, there is no need to release an updated version at a time when switches were flying off the shelves fast enough for Nintendo to make them. In fact, the huge success of Switch and its Evergreen software list among the top three companies helped Nintendo cope with the Covit storm and the shortage of components even better. Even though we haven’t left the woods yet, it feels like anyone would want the switch to have one and more eyes.

In a better world, Nintendo is definitely looking forward to launching a Switch successor next year or so. The current model continues to sell, but as the numbers dwindle there is new heat to increase dullness and profitability. Nintendo faces uncontrollable production problems, however – which could delay plans for the next console and eventually affect the company’s pace. Switch may be a big cash cow, but it is not a good business strategy to skip completely dry milk without being ready for an alternative.

See also  What rising interest rates mean for your credit, loans, savings and more
Animal Crossing OLED
Evergreen, slow-burning games like Animal Crossing help keep the cruise going well until now (Image: Nintendo Life)

The movements are undoubtedly in place for the successor, but considering all possible production barriers, Nintendo’s main problem is when to pull the trigger on the sequel. Combined with launching a new console (backwards compatible, of course) Zelda: Breath of the Wild 2 The release date of ‘Spring 2023’ comes six years after the original, so it makes more sense. According to a poll we ran into the titleMany Nintendo Life readers will jump at the new hardware with the new Zelda – that’s what you expect Nintendo to do.

Movements are beyond doubt for heirs, but knowing when to pull the trigger in pursuit is now Nintendo’s main problem.

Rumor has it Microsoft paid to ‘jump into the queue’ to get more Xbox and chip priority, and while Nintendo didn’t want one or two, it could not compete with Microsoft. Since companies have to stand in line for parts, it can not only be Nintendo, it must also create better condition for a longer period of time than under normal circumstances. Plans to split its stake by 10/1 It is another indicator that while the business is still strong, ambush wants to do better.

In fact, with dates such as when the Switch successor may appear, we have recently seen analysts provide more sober estimates. “End of 2024” Recommended now. By then the current console will be seven and a half years old – a retiree based on modern gaming. There is no doubt that the system is capable of delivering the best games ever, and that is not going to change, but an industry and hardcore fan base will always have an eye on The Next Big Thing,, as late as 2024 looks like. Wait a long time for the new Nintendo hardware.

See also  Zelenskiy is Ukraine's spy chief and top prosecutor Volodymyr Zelensky

In terms of profitability, of course, Nintendo could tackle two more years in its current offering, perhaps with a switch light OLED thrown in for good measure. However, it is difficult to shake the notion that the company stands still – if not for the players, then of course for the investors. The new Zelda will help, but the holiday 2024 is far from over.

Bloomberg reports Nintendo President Shundaro Furukawa “declined to comment when asked during a press conference about when his company might release the next iteration of its Marquee console”, and we would like to believe that this is a pressing question within the walls of Nintendo headquarters. As well as. Publishing the announcement is easy, but hardware production and meeting customer demand is a challenge, and we certainly will not be jealous of those who make the logistics for Nintendo’s next console launch.

Let us know in the poll below when you think Nintendo will launch its next console.

Leave a Reply

Your email address will not be published. Required fields are marked *