Financial Association, November 6 news (Editor Xia Junxiong) Japanese gaming giant Nintendo confirmed on Wednesday that its next-generation game console will be compatible with games on the current Switch platform. Following this news boost, Nintendo's stock price rose nearly 6% on the same day.

Nintendo President Shuntaro Furukawa announced this at a company management policy briefing on Wednesday, stating: "Many players are currently playing Nintendo Switch, so we believe that enabling them to run Switch software on future models would be the best choice."

Nintendo stated that more information about the next-generation game console will be announced later.

Nintendo's Switch game console was launched in March 2017 and has sold over 0.145 billion units worldwide, with software sales exceeding 1.3 billion units. Switch's sales currently rank third in gaming history, behind Sony's PlayStation 2 (over 0.15768 billion) and Nintendo's DS (0.15402 billion).

Game consoles typically undergo a generational upgrade every seven years. Since the Switch has been on the market for nearly eight years, many gamers are eagerly anticipating Nintendo to release the next-generation model as soon as possible.

Nintendo previously stated that they will announce the follow-up new Switch no later than March next year, but did not disclose further information.

Given the large user base of the Switch and referencing the game consoles Nintendo has released in the past, it is no surprise that the company's next-generation console will be compatible with games on the Switch platform (commonly known as backward compatibility).

Kantan Games consulting company founder Serkan Toto said: "This is not surprising, but it may once again hint that the next generation of devices will be similar to the current models."

Toyokeizai analyst Hideki Yasuda said, for users and investors, it is good news that the next generation model is compatible with Switch games.

While there are various rumors and news about the subsequent models of Switch, Nintendo officials are still very cautious about it. However, from Nintendo's latest quarterly report, the company urgently needs new models to boost slowing performance.

Nintendo's performance decline is significant.

The financial report released on Tuesday shows that Nintendo's second quarter (the third quarter of the calendar year) revenue was 276.7 billion yen (approximately 1.8 billion dollars), a 17% year-on-year decrease, above the expected 273.34 billion yen; net income was 27.7 billion yen (approximately 0.18 billion dollars), a sharp drop of over 69% year-on-year, far below the expected 48.06 billion yen.

Due to a significant decline in performance, Nintendo has lowered its full-year sales forecast for Switch by 7% to 12.5 million units for the current fiscal year. The company has also lowered its full-year revenue forecast to 1.28 trillion yen (approximately 8.317 billion dollars), but maintained its net income forecast.

Jefferies Financial analyst Atul Goyal wrote in a client report: "We are not surprised by the (hardware) failures, as Nintendo's target market seems to be quite saturated in most regions."