Nintendo Switch will soon begin to lose popularity due to its large age
The next fiscal year in the calendar of the Japanese company Nintendo will end in March. She expects to sell at least 26.5 million Switch game consoles of both models in the reporting period. Experts are inclined towards more optimistic figures, but they are inclined to believe that in the future, demand for Switch will decline due to the age of the console.
Nintendo Switch is entering the fifth year of its life cycle, so UBS experts, cited by the Nikkei Asian Review, predict a natural decline in demand for this console in the next fiscal year. Sales can be supported by expanding into new geographic markets such as the Middle East, South America, and Southeast Asia and increasing the number of games downloaded by users.
The past quarter for Nintendo was unequivocally successful. The company has sold over 11 million Switch game consoles, increasing its sales volumes sequentially by 68%. In annual comparison, the volume of sales increased by 7%. In the current quarter, demand should also remain at a high level. Rival Sony sold no more than 4.5 million new PlayStation 5 consoles last quarter as it suffered from component shortages. Unlike Nintendo, Sony’s new platform is at the beginning of the market cycle and can count on a steady rise in popularity in the coming months.
