Nintendo Co is preparing software for recording and sales of the switch next year, a much stronger performance than investors are doing, according to partners and company providers.
Nintendo in Kyoto is planning the sale of its signature Switch game console to be flat or slightly higher in the financial year ending March 2022, augmented by the launch of an OLED display version, according to organizers including software providers, software publishers and retailers. Analysts have predicted that console sales will decline next year.
Marquee game releases are expected to drive software sales in the next financial year to 250 million units, far more than the predictable record of 205 million units this year, according to partners and providers, speaking anonymously as the programs are not public. Analysts also point out that software sales will decline next year.
Some of the providers were notified while some partners were making their own predictions based on orders. A Nintendo spokesman declined to comment.
Shares of Nintendo postponed morning losses and finished 1.6% in Tokyo on Monday.
The outbreak of the coronavirus was initially a brake and then accelerated Nintendo, squeezing its supply and resources before creating an increasing demand for land closures that drive people to seek entertainment and escape. Company Animal Crossing: New Horizons turned into a seemingly ideal hangout for stress relief, juicing sales Change sales and accelerate the transition from integrated software to digital downloads.
“Nintendo will need to start the next fiscal year without Animal Crossing and the epidemic, but that will be limited by a very strong blockbuster software program and new hardware,” said Kantan Games Inc. sports consultant Serkan Toto.
Nintendo plans to release a revised version of Switch in the latter part of this year with a larger and better display and improved graphics when the hybrid console is connected to a TV set, reports Bloomberg News. The company hosts some of the biggest blockbuster games on its platform, contributing significantly to the gain and promotion of hardware adoption. Much of this year’s list of new games remains unknown.
The switch and switch Lite continue to sell well, due to the poor performance of Sony Corp. PlayStation 5 and Microsoft Corp. Xbox Series X. released in November, according to David Gibson of Astris Advisory of Japan. But the lack of visibility surrounding the slate of upcoming Nintendo games has cast doubt on the company keeping its latest success.
“With the improved switching in or out, sales of Nintendo hardware are likely to decline annually from April,” according to Matthew Kanterman of Bloomberg Intelligence.
Nintendo’s ability to meet the need for a switch will be challenged by the same bottleneck supply chip that has plagued its competitors. In addition to acquiring silicon from the likes of Taiwan Semiconductor Manufacturing Co., Switch maker also faces a shortage of common components such as integrated driver circuits and Bluetooth modules, say people familiar with its performance. Component providers say the shortfall will continue at least until June and the situation is likely to not improve for the rest of the year.
NAND flash memory makers – media outlets where the Switch software is sold – are preparing more units for the next financial year than they have given the current one, say participants in the series. Software developers alike are prioritizing Switch in their upcoming game releases as the console has exceeded 100 million units sold, guaranteeing a wider audience of potential buyers. Nintendo has sold 80 million switch devices since the end of 2020.
The games announced this year so far include many Pokémon titles and popular third-party games like Fall Guys by Mediatonic. Although Nintendo’s release plan for the second half of the year remains unoccupied, it came as a surprise to announce Splatoon 3’s 2022 last month, says Gibson’s Astris Advisory, which shows a strong long-running sports pipeline.
“Switch is in the middle of its life cycle,” Nintendo President Shuntaro Furukawa said in February.