Topline
Gaming mammoth Nintendo announced a slew of new games and remasters Wednesday at a highly anticipated presentation Wednesday—though there was no teaser of a new console from the video game company—which has experienced a persistent slide in sales for its flagship Switch console.
Key Facts
Some of the biggest developments announced in its signature Nintendo Direct presentation included a new 2D Mario game called Super Mario Bros. Wonder, along with trailers for the upcoming Detective Pikachu, Pikmin and Sonic games.
The games shown at the presentation also featured remasters and remakes that have become synonymous with Nintendo, such as Luigi’s Mansion: Dark Moon, that will be released in the fall and holiday season—which the company hopes will push back on declining profits that were down more than 9% year-over-year in its latest earnings report.
No teasers or announcements were made for a new or upgraded console from Nintendo, despite declining sales for the Switch—its flagship console sold nearly 18 million units in the last fiscal year after selling more than 23 million units the year prior.
Nintendo also announced it would be bringing the Batman: Arkham trilogy to Switch this fall—a collection of highly popular games that were first produced for Xbox, Playstation and PC.
Key Background
The Nintendo Switch is now seven years old and has experienced two years of declining sales. The console’s sales peaked in Nintendo’s 2020/2021 fiscal year, riding an entertainment wave caused by the Covid-19 pandemic to 28.8 million units sold. The console sold 17.9 million units in the 2022/2023 fiscal year—a figure that drove a fall in profit and revenue for Nintendo. Nintendo’s consoles have been released on different timelines than its Xbox and Playstation competitors, both of which released new, next generation consoles in late 2020. Currently, Xbox and Playstation have the most technologically advanced consoles on the market—leaving Nintendo technologically behind. Reports have suggested that due to the company’s falling profits and how long they have taken in the past to launch new consoles, it’s only a matter of time before Nintendo unveils a new flagship product.
What To Watch For
Nintendo expects Switch sales to continue to decline into next year, forecasting 15 million sales. Despite the drop in sales, the Switch has done well in the grand scheme of console sales as Nintendo moves closer to an inevitable new console. In an interview with CNBC, Serkan Toto, the head of games consultancy firm Kantan Games, said the console had a “fantastic run” but that it had passed its peak. “Every console cycle comes to an end eventually, and Nintendo, too, now needs a new piece of hardware to revitalize its sales,” he added.
Tangent
Nintendo is fresh off the massive commercial success of The Legend of Zelda: Tears of the Kingdom, which sold 10 million copies in its first three days and became the fastest-selling game in the company’s history.
Big Number
More than 122 million. That’s the number of Switch units sold as of this February, making it the third-best-selling video game console of all time.
Nintendo Switch Sales Fall Again With Further Decline Expected Next Year (IGN)
Nintendo Direct Full Presentation | June 2023 (Nintendo)
Read the full article here
