In an effort to generate enthusiasm among its present user base for the eagerly awaited device, Nintendo announced on Wednesday that it will permit current Switch games to be played on the popular console’s successor.
Following the announcement, Nintendo’s stock ended Wednesday’s trading session in Tokyo 5.8% higher.
“This is a sign that investors believe Nintendo’s next device will be a continuation rather than a risky experiment,” Serkan Toto, CEO of Tokyo-based games consultancy Kantan Games, told CNBC.
“Instead of trying to reinvent the wheel with every new console generation, I think investors want Nintendo to follow the iPhone’s strategy of progressively improving a successful product.”
For a number of reasons, game backward compatibility is essential for console manufacturers. To start, new consoles frequently have a limited selection of games when they launch. Making older titles compatible with the new Switch will increase its allure in this regard.
Second, present Switch users may wait until after the new console’s launch if they are considering buying new games before it happens. That worry is allayed by making existing games compatible with the Switch’s replacement.
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After the Nintendo DS, the Switch is Nintendo’s second-best-selling console ever.
However, the Nintendo Switch, which was first made available in 2017, is gradually losing its high level of demand. The business stated that it will reveal the console’s replacement in its fiscal year that ends in March 2025, but investors have been waiting for additional information.
By publishing games with well-known brands like Zelda and Pokemon and branching out into other genres like movies, Nintendo was able to revitalize the console, which is almost eight years old, last year.
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