Unveiling the Future: Inside Nintendo’s Switch 2 Strategy and Sales Forecast

Fresh information has surfaced regarding Nintendo’s forthcoming Switch 2 console, subsequent to the company’s official confirmation of its development. In a briefing for the financial year concluding on March 31, 2024, Nintendo president Shuntaro Furukawa briefly addressed various aspects of the upcoming gaming system.

Repeatedly throughout the briefing, Furukawa referenced the “successor to the Nintendo Switch,” indicating that the new device will expand upon the groundwork laid by the Switch console.

“At this juncture, we are unable to provide further details regarding the successor to Nintendo Switch,” Furukawa stated when questioned about the specific term used. “For today’s announcement, we determined that ‘successor to Nintendo Switch’ was the most appropriate terminology. Information will be unveiled gradually leading up to the launch, following the approach we’ve taken with previous hardware releases.”

While Switch sales surged during the initial years of the COVID-19 pandemic, the global semiconductor shortage posed fresh hurdles for Nintendo as it grappled to meet demand. However, for the Switch 2, Nintendo does not “anticipate” this issue to be a concern leading up to its launch. Nevertheless, Nintendo’s sales projections for the fiscal year currently do not encompass Switch 2 sales, though this stance may evolve over time.

Nintendo also acknowledges it is taking a “somewhat ambitious” approach to its hardware sales forecast for the current fiscal year, planning various initiatives to meet the projected sales targets for Nintendo Switch consoles and games. Part of this strategy sheds light on why Nintendo delayed confirming the Switch 2, as there were concerns that such an announcement could dampen sales of existing Switch consoles.

“We do not expect the announcement of the successor to Nintendo Switch and future related communications to have no impact on Nintendo Switch sales,” Furukawa remarked. “However, we aim to optimize sales this fiscal year by striking a balance between generating new demand and maintaining demand for multiple systems.”

For the 2023-2024 fiscal year, Nintendo reported a 12.6% year-on-year decline in Switch hardware sales, from 17.97 million to 15.70 million units. Lifetime sales for the Switch stand at 141.32 million consoles, with software sales totaling 1.235 billion games. Among these games, Mario Kart 8 Deluxe has emerged as Nintendo’s top-selling title of all time—albeit with one minor caveat—and the company has confirmed a Nintendo Direct event in June. However, details about its Switch 2 console are unlikely to be featured, as the event will focus solely on upcoming games for the latter half of the year.