Sales growth for the Nintendo Switch has begun to slow significantly

In the recently announced full-year financial results for the fiscal year ending March 2023, Nintendo President Shuntaro Furukawa stated that sales growth for the Nintendo Switch, now in its seventh year, has begun to slow significantly. As a result, the company has adjusted its projected sales figures for the fiscal year ending March 2024 to 15 million units, acknowledging that reaching this target will be challenging.

Since its market debut in March 2017, Nintendo has introduced several iterations of the Switch, including a version with an upgraded battery, a non-detachable Lite version, and a model featuring an OLED screen. Initially, the goal was for every household to own one Switch, but as the company aimed to expand the overall market for the device, they envisioned multiple units being used in each household.

However, with no substantial changes in hardware specifications and sales entering the seventh year, Nintendo is uncertain about sustaining significant sales growth. Although the company sold 17.9 million Switch units in the fiscal year 2023, maintaining the same sales volume in the next fiscal year is considered challenging, with even the 15 million unit target deemed ambitious. Nintendo is evidently aware that the market demand for the Switch is nearing saturation, and many are anticipating the launch of the next console.

At present, it remains uncertain whether Nintendo will introduce a new device this year, as rumored, or continue to cater to the gaming market’s needs with the Switch.