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Nintendo unveils backward compatibility for Switch software making way for a seamless gaming experience for over 1.3 billion gaming units

The Kyoto-based gaming conglomerate, Nintendo has announced its software to play on Switch console will now be playable on its next-gen device. The newly launched feature is called backwards compatibility. It is meant to assist Switch fans in transitioning to the new console that the company has hinted at introducing by the fiscal year that ends in March 2025.

The company's president, Shuntaro Furukawa, confirmed the move while speaking at a management policy briefing, emphasizing the necessity of enabling customers to preserve their existing game libraries. He said, “Nintendo Switch is currently being played with by many customers, so we decided it would be optimal for them to be able to play their Switch software on the successor model.” Furukawa also highlighted that this would allow customers “to enjoy the games they own and choose their next title from the lineup of games already on the market.”

Enabling backward compatibility would add an attractive factor to the new console, especially towards the enormous install base that Nintendo boasts of over 145 million units sold across the globe. According to Serkan Toto, the founder of the Kantan Games consultancy, this feature indicates the next device could be of similar design as the existing one.

The Switch has managed to keep Nintendo relevant for eight more years. This long-lasting life has been from steady streams of popular titles as well as hardware refreshes, but now in business terms, things seem slightly different. Hardware is coming down, and last month, the demand saw a plateauing state at many of its strong marketplaces, hence, a trimming from 12.4 to 12.5 million units in terms of selling for the fiscal year, resulting in a 7% sales cut. “We are not surprised by the miss on the (hardware) side, given that Nintendo's target markets appear fairly saturated in most geographies,” said Jefferies analyst Atul Goyal.

Although hardware sales are slowing, the software continues on an upward trend. The company reported selling 39.6 million units of software in the quarter that ended in September. That is a 29% increase from the prior quarter. The software bright spot has helped counteract the decline on the hardware side. The company's shares have risen 6% in Tokyo today, following a 3% advance in the benchmark index.

The announcement reflects Nintendo's commitment to making a smooth transition for its large customer base at the same time maximizing value from its existing software lineup, which now tops over 1.3 billion units sold.