Nintendo wants customers "smoothly transition" to its next console

During its 83rd annual general meeting of shareholders last week, Nintendo received inquiries regarding its plans for the next generation of consoles, prompting further discussion on the topic.

Questions were raised regarding the company's future console plans, particularly in light of the recent slowdown in Switch console sales. While Nintendo had previously indicated that no new hardware would be released before April 2024, reports from Nikkei Asia suggested that development of the next console was progressing well.

Shareholders expressed their concerns about backward compatibility, referencing the inability to transfer Nintendo 3DS and Wii U games purchased through Nintendo eShop to the Switch. They hoped that a similar limitation would not be present in Nintendo's next console. In response, company president Shuntaro Furukawa stated that while they were considering various aspects of future hardware, he refrained from making specific comments at that time.

Furukawa emphasized the different sales styles of Nintendo Switch software, including physical package software, download versions, and download-only software. He acknowledged the increasing ratio of digital sales compared to previous consoles and expressed the company's commitment to proposing unique gameplay experiences through integrated hardware and software in the future.

When questioned about strategies for transitioning from the Switch to the next console, Furukawa highlighted the utilization of Nintendo Accounts to facilitate a smooth transition process for customers.

“Regarding the transition to the next generation, in the past, hardware was the only means for us to connect with our customers, and every time we released a new console, we had to rebuild our relationship with our customers,”

However, with the Nintendo Switch, we have been able to directly connect with various customers through the Nintendo Account system. The Nintendo Account is not only usable for those with game consoles, but also for customers on mobile devices, and the current number of accounts exceeds 290 million.

In the transition from the Nintendo Switch to the next generation console, we would like to make sure that customers can smoothly transition while still utilising their Nintendo Accounts.

Nintendo has underscored the significance of Nintendo Account integration for its upcoming console as well.

Introduced in 2016, Nintendo Accounts serve as a means of unifying the user experience across Nintendo's mobile games, online stores, and consoles. This integration allows players on mobile devices to receive rewards for completing challenges in console games and share a friends list, fostering a seamless and interconnected gaming ecosystem.

Since its launch in 2017, Nintendo Switch has seamlessly integrated with Nintendo Accounts, enabling the tracking of user data including friend lists, save files, experience data, and software purchase history.

In the previous fiscal year, Nintendo reported selling 17.97 million Switch consoles, resulting in a total of 125.62 million units sold to date. This achievement places it behind only Nintendo DS handheld (154.02 million) and Sony's PlayStation 2 (155 million) in terms of lifetime sales.

Now in its seventh year on the market, Nintendo anticipates a 16.5% year-over-year decline in sales, aiming to sell 15 million units during the current fiscal year.