On Wednesday, Nintendo announced that existing Switch games will be compatible with its upcoming console, aiming to generate excitement among its current player community for the much-anticipated device. Following this news, Nintendo’s stock rose by 5.8% in Tokyo.
According to Serkan Toto, CEO of Kantan Games, a Tokyo-based gaming consultancy, investors perceive this as an indication that the new console will build upon the existing framework rather than venture into risky territory. He noted that investors prefer a strategy similar to Apple’s approach with the iPhone—incrementally enhancing a successful product instead of completely overhauling it with each new generation of consoles.
The ability to play older games is crucial for console manufacturers for several reasons: first, when new consoles are released, their game libraries are often limited. Allowing access to previous titles on the new Switch will enhance its attractiveness in this regard.
Additionally, current Switch owners contemplating purchasing new games before the launch may decide to wait until after its release; enabling compatibility with existing titles alleviates this hesitation.
The Nintendo Switch ranks as the second highest-selling console ever, only surpassed by the Nintendo DS. However, interest in the Switch, launched in 2017, is gradually diminishing, albeit still at elevated levels. Investors are eager for more information regarding its successor, which Nintendo plans to reveal during the fiscal year ending in March 2025.
Last year, Nintendo revitalized the nearly eight-year-old console by introducing popular titles featuring iconic franchises such as Zelda and Pokemon and venturing into new territories like film production.