Will new information on Nintendo's Switch successors come out? This fiscal year, sales and profit will decline drastically due to a slowdown in sales [financial results preview]

Sales and profit are expected to decline drastically for the full year due to switch deceleration
The company anticipates a drastic decline in sales and profit for the current fiscal year. Consolidated sales for the current fiscal year compared to the previous fiscal year19.3% reductionOperating profit of 1,350 billion yen24.4% reductionNet profit of 400 billion yen38.9% reductionIt is expected to be 300 billion yen. What is the main game console Nintendo SwitchIt entered its 8th year on sale in March this year. Hardware sales this fiscal year compared to the previous fiscal year14% reductionWhat is the sale of software17.4% reductionThe forecast is for a sharp deceleration, and it is likely to be a tough year. Also, NintendoThe ratio of overseas sales is as high as 80%, and it is easily affected by exchange rate fluctuations.In the previous fiscal year, exchange gains rose to 60 billion yen or more due to the depreciation of the yen, and net profit hit a record high. Meanwhile, this termThe depreciation of the yen progressed during the 1Q periodI did,The trend of rapid appreciation of the yen after JulyIt's turning to The end of the term on the company sideThe estimated exchange rate is 140 yen.Not at the current exchange rateAn increase in the margin is assumedIt will be, but if the appreciation of the yen progresses, it will be the beginning of the fiscal yearThere is a possibility that upward expectations will fallThere is.

▼ Nintendo's estimated exchange rate (table: Nintendo IR data, same below)

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　▼ Switch decelerates noticeably in both hardware and software

When will the Switch successor be announced and released?
The sales period for the Switch surpassed the “Family Computer” in July this year, making it the longest mainline game console. President Furukawa Shuntaro commented on the long-awaited successor when financial results were announced in May, saying “it will be announced during the fiscal year ending 25/3.” The period from announcement to sale is also hard to predict, and various speculations are flying around. In the industry, if time is spent on resale measures such as securing initial inventoryThere is also a view that there is a possibility that “from summer '25 to after the end of the year” will be releasedIt's out. It seems that stock prices will also be influenced by the progress of sales plans for the successor.

What are the specs of the successor
Since the successor assumes that the Nintendo account system will be inherited, it is expected that software compatibility will be carried over. Also, faster game card readout and an increase in storage capacity are also expected. According to an article in the Nihon Keizai Shimbun dated 2/26, the display will adopt a large screen that exceeds the switch (6.2 inches for the standard model), and it will be compatible with games with higher definition image quality. While market expectations were growing, the first Switch became a hit with cumulative sales exceeding 0.1 billion 40 million units, soThere are also voices concerned about the reactionIt's out. In stock pricesHigh expectations have already been factored inAs can be seen, foreign securities are about stock price trends”It's difficult to justify a major upside from current stock pricesIt is” and”I think it would be difficult to keep up with further increases” she commented in the report.

Aim for more movie hits
Intellectual property (IP) strategies that include movie releases with the aim of increasing points of contact between consumers and content, starting with the Super Mario movie that was a big hit in the previous fiscal year, have been successful.A live-action film adaptation of “The Legend of Zelda” was also announcedI'm doing it,A new animated Mario movie is also scheduled to be released in April '26that's it. Other than movies, participation in theme parks is also going well. In mid-'25, they opened their second goods store in the US after New York in San Francisco.