Nintendo Switch sales are down 22% in the past year despite successful launches. Investors believe that the game console’s sales peak, with more than six years on the market, has reached its point of no return.
With six years of travel, Nintendo Switch it would have passed its sales peak and entered a clear reversal because of the time in the market, semiconductor problems and low Christmas sales figures. Not even the releases, sales records, of titles like Splatoon 3 or Pokémon Scarlet and Purple, have been able to raise the numbers of the console.
In a sweet moment for Sony, after its rocky launch of the PlayStation 5, Nintendo hardware would have shown signs of market saturation, that is, your Nintendo Switch game console. The improvements in the screen and in the portability, had halted the fall until now, but 22% less sales this year, seems sufficient indication to alarm investors.
In this sense, Serkan Toto, CEO of Kantan Games, a game consultancy in Tokyo, told CNBC that: “Nintendo Switch had a fantastic run, but it’s definitely past its peak“.
He added that, according to forecasts for the new fiscal year, don’t expect any miracleInstead, the company runs on autopilot and does its duty to existing Switch users.
Also, he mentioned that every console cycle comes to an end eventually, and Nintendo also now needs a new Nintendo Switch 2 to revitalize its sales.
Even so, the Japanese company forecasts a sale for the following year of 15 million, which, even going down, represents a significant figure in sales and which could place the Nintendo hybrid as the best-selling console in history ahead of PlayStation 4.
Big releases that maintain the life of the console
The future of Nintendo Switch goes through keep updated the games and income of its more than 114 million annual paying users.
In this sense, great releases of triple A video games are expected that, without a doubt, could keep Nintendo while it renews its hardware.
We refer to Zelda: Tears of the Kingdom, whose departure is scheduled for May 12. This installment is the continuation of the fourth best-selling video game on the Switch, with 29 million copies, a total critical success and part of one of the most beloved great sagas by fans: Zelda Breath of the Wild.
In the meantime, it’s time to hold on. “We expect Nintendo to not release next-gen hardware in the next 12 months.said UBS Securities analyst Kenji Fukuyama, in a letter to clients before the earnings report. “It is very likely that Nintendo’s valuation will be reduced until the launch of the new hardware..