Nintendo on Switch’s lifecycle as system enters seventh year

During Nintendo’s latest financial results briefing, president Shuntaru Furukawa was asked to comment on Switch’s lifecycle.

With the console celebrating its sixth anniversary next month and entering its seventh year, Furukawa stated the challenge will be “finding ways to encourage users who are considering new purchases, replacement purchases, and additional purchases to pick up a Nintendo Switch.” Furukawa pointed to the importance of new games and evergreen titles, maintaining engagement with the system, and increasing contact with Nintendo through The Super Mario Bros. Movie and Super Nintendo World. 

Also reiterated that there is no need to change its pricing strategies for hardware or software at this time.

Furukawa stated:

Nintendo Switch, which will soon enter its seventh year, has sold over 120 million units cumulatively, and we believe that it is entering uncharted territory in Nintendo’s dedicated video game platform business. In this environment, it will not be easy to maintain hardware sales at the same pace as before. For this reason, our new challenge for the seventh year is finding ways to encourage users who are considering new purchases, replacement purchases, and additional purchases to pick up a Nintendo Switch.

We believe that both new titles and evergreen titles can create opportunities for new users to purchase hardware. Furthermore, maintaining engagement with the hardware can lead to the introduction of new software. In December of last year, we saw the highest-ever level of Nintendo Switch engagement, and many consumers continue to play Nintendo Switch. Given the situation, it is important going forward to communicate the appeal of Nintendo Switch through software offerings to consumers considering new purchases, replacement purchases, and additional purchases of the hardware.

Super Nintendo World will have its grand opening at Universal Studios Hollywood this February, and The Super Mario Bros. Movie will premiere in April. By creating opportunities for consumers to encounter Nintendo topics in areas outside of the dedicated video game platform, we aim to maintain the overall momentum of our business.

As we continue the Nintendo Switch business over the long term, we have tried to preserve the value and prices of both hardware and software as much as possible. We do not believe that policy needs to be changed at this point.