In a move that has sent ripples through the gaming community and boosted investor confidence, Nintendo has officially confirmed backward compatibility for its highly anticipated next-generation console, often referred to as the Switch 2.
The news was revealed by Nintendo President Shuntaro Furukawa during a Corporate Management Policy Briefing, where he stated that “Nintendo Switch software will also be playable on the successor to Nintendo Switch.” This announcement signals a smooth transition for gamers, allowing them to seamlessly carry their existing Switch game libraries to the next generation.
Adding to the positive news, Nintendo Switch Online (NSO), the company’s subscription service, will also be available on the successor to Nintendo Switch. With over 34 million active members as of September 30, 2024, NSO has become a crucial aspect of Nintendo’s revenue and fan engagement. The inclusion of NSO on the next-gen console ensures a familiar and accessible experience for existing subscribers.
The announcement has been met with enthusiasm from investors, as evidenced by a 5.8% rise in Nintendo’s stock price at the close of the trading day in Japan. Serkan Toto, CEO of the gaming consultancy Kantan Games, commented on the market’s reaction, stating: “Investors think this is a sign Nintendo’s next device will not be a risky experiment but rather a continuation.”
While the news regarding backward compatibility and NSO has been welcomed with open arms, Nintendo has also made adjustments to its sales projections for the current Switch console. The company experienced a 31% year-over-year decline in Switch hardware sales by the end of September, prompting a revised sales forecast from 13.5 million units to 12.5 million for the fiscal year.
Despite the downward trend, the Nintendo Switch remains a popular choice, with over 146 million units sold globally. Additionally, Nintendo revealed that over 100 million people worldwide continue to enjoy the console.
The next-generation Nintendo console is projected for a 2025 release. While details about its specifications and features remain under wraps, the confirmation of backward compatibility and the inclusion of NSO indicate that Nintendo is focused on providing a seamless and familiar experience for its loyal fanbase while also attracting new players to the Nintendo ecosystem.
