The Kyoto-based corporation has expressed its intention to disclose information pertaining to this successor during the fiscal year concluding in March 2025, albeit specific details remain confidential at this juncture.
Furukawa stated, "Given that many customers are currently enjoying the Nintendo Switch, we believe it is best for them to have the ability to play their existing software on the new model."
He further explained during a management policy briefing that "customers will have the opportunity to enjoy their current games and select from a range of titles already available in the market."
The inclusion of backward compatibility may facilitate a smoother transition for consumers to the new device and enhance the attractiveness of the existing game library.
Serkan Toto, founder of the consultancy Kantan Games, remarked, "While this isn't entirely unexpected, it does suggest that the next device may closely resemble the current one."
To date, Nintendo has sold over 1.3 billion software units for the Switch, which has been on the market for eight years and boasts an install base exceeding 145 million units.
The Kyoto-based company has successfully prolonged the lifecycle of the hybrid home-portable Switch through popular game releases and several hardware updates.
However, hardware sales are beginning to slow, prompting Nintendo to reduce its full-year Switch sales forecast by 7% to 12.5 million units as the crucial year-end shopping season approaches.
Jefferies analyst Atul Goyal noted in a client report, "We are not surprised by the decline in hardware sales, as Nintendo's target markets seem to be quite saturated in most regions."
He added, "Software sales saw an uptick in the second quarter and are anticipated to continue this trend in the third quarter."
In Q2 ending September, Nintendo sold 39.6 million software units, a 29% increase quarter-over-quarter.
Consequently, the company's shares rose 6% in Tokyo, outperforming the benchmark index's 3% gain.