Nintendo has been enjoying the success of the Switch console since its release back in 2017. However, there doesn't seem to be any immediate plans to make the transition to a next-generation console, and it's a bit of a concern for Nintendo.
The main concern is transitioning and resetting its 100million plus userbase as keeping them happy and building "long-term relationships" is Nintendo's primary goal.
Nintendo president Shuntaro Furukawa spoke to Japanese investors earlier this week and expressed these concerns when asked about a possible next-gen console.
"We have already announced a portion of our software roadmap releasing up to next spring," he said. "Unlike the past, we continue to have a large variety of games scheduled to be released, even beyond five years of release. This is because the Nintendo Switch has had such a smooth launch, allowing us to focus all of our development resources on a single platform.
"However, the question of whether we will be able to just as smoothly transition from the Nintendo Switch to the next generation of hardware is a major concern for us. Based on our experiences with the Wii, Nintendo DS, and other hardware, it is very clear that one of the major obstacles is how to easily transition from one hardware to the next.
"To help alleviate this risk, we're focusing on building long-term relationships with our customers. While we will continue launching new software on the Nintendo Switch, we will also provide services that also use Nintendo Accounts and other IP outside of gaming software. We intend for this to help build a lasting impact with our customers."
Nintendo reported on Tuesday that Switch hardware sales for the fiscal year ended March 2022 were 23.06 million, increasing total sales to 107.6 million. The statistic gets Nintendo closer to breaking the PS2's (155 million) sales record, but it still represents a 20% drop from the previous year, when Switch sales peaked at 28.83 million devices.
Officially, the firm has stated that it believes Switch is still in the middle of its lifecycle and that the new OLED model would help it achieve the sixth year of growth.
"The hardware and software development teams are in the same building, communicating closely and thinking about how we can propose new forms of entertainment," he said.
"In order to create a single piece of hardware, we have to do a lot of preparation several years in advance, so we are working without stopping. In the end, the deciding factor in whether or not to commercialize a product is whether it can create a new experience."
