Switch Is Nintendo’s “Main Business” Right Now, But All Eyes Are On The Horizon

Which must be apparent. With 139.36 million items offered as of 31st December 2023, {hardware} gross sales is perhaps declining, however for a console at this latter stage in its lifecycle, the Switch is in impolite well being, with extra customers taking part in than ever earlier than and Nintendo nonetheless promoting a sackload of software program.

For occasion, Mario Kart 8 Deluxe simply sped previous 60 million gross sales, Pokémon Scarlet & Violet overtook Gold & Silver to grow to be the third best-selling Pokémon video games ever, and more moderen releases Zelda: Tears of the Kingdom and Super Mario Bros. Wonder have surpassed the 20 million and 10 million gross sales respectively (the latter in simply two months).

So the place does this depart ‘Switch 2’ and the deluge of {hardware} rumours we have all been wading by means of for months?

It’s the identical story each time the cycle involves an in depth. How do you transition to the subsequent technology with out killing the golden goose?

Well, it is nonetheless just about precisely the place it was. Furukawa’s assertion is definitely correct, and on paper, it is more likely to stay so for all the yr — even when a successor is introduced and launched in 2024. Manufacturing sufficient items to fulfill demand is at all times difficult (simply ask Sony and Microsoft), so even when, hypothetically, a brand new console launched in October or November 2024, Nintendo would battle to supply adequate portions to outpace the OG Switches.

Based on an LCD display screen manufacturing estimate supposedly linked to an unannounced, upcoming console, it is advised that Nintendo goals to fabricate over 10 million items by the tip of March 2025. If we assume a slimmer revenue margin on brand-new {hardware}, mixed with the truth that we’re not speaking sell-through right here (the variety of consoles which have gone by means of the provision chain and into the palms of paying prospects), simply Nintendo’s rumoured manufacturing targets, Furukawa’s assertion appears much more diluted. Yes, clearly the system that is on cabinets with an infinite library of critically acclaimed hits is the “main business” proper now. ‘Switch 2’ might very effectively launch this yr and the present console would nearly definitely stay the higher general gross sales performer for the yr. Any means you take a look at it, the Nintendo exec is technically right.

Evasive solutions are par for the course, particularly when everybody’s keen to listen to concerning the new hotness. It’s the identical story each time the cycle involves an in depth: How do you transition to the subsequent technology with out killing the golden goose within the course of?

The unusual experiment that was the Nintendo DS was famously a ‘third pillar’ to accompany the Game Boy handheld and residential console strains — that was till its success made the GB out of date and the third-pillar angle was shortly forgotten. Nintendo bungled the handover from Wii to Wii U to such an extent that kicking off with Switch felt like a completely new recreation, with no thriving predecessor or income movement to fret about reducing off. The firm is understandably cautious this time round, with much more to lose if ‘Switch 2’ seems to be a ‘Switch U.’

Furukawa has been bullish about Switch’s longevity a number of occasions prior to now, however whereas the {hardware} troopers on as its eighth yr approaches, the numerous and varied rumours make it clear that there is a enormous urge for food for contemporary {hardware} from each gamers and Nintendo buyers. We await the customary publication of the investor Q&A transcript for additional evasions, though we marvel if Furukawa could make it by means of one other spherical of leads to three months’ time operating solely on OG Switch fumes.

Crucially, there’s nothing in these new feedback to recommend that we cannot be getting new Nintendo {hardware} information in 2024. This is traditional, third-pillar-style commentary to supply reassurance and keep away from saying something to scupper a advertising machine that’s being tuned and tweaked to perfection earlier than unleashing its superior ‘Switch 2’ technique. (Please, simply reveal the identify already — our single-quote key wants a relaxation!)

So, for these of you keen to listen to extra concerning the fabled follow-up, preserve Yellow Alert. And these of you fed up with the barrage of hearsay and insinuation? Keep these shields up.