While the Switch has outsold PS4, Nintendo sees greater challenges ahead

The Switch is now the third-best-selling console, surpassing both the Game Boy & PlayStation 4. Nintendo announced that the console sold 122.55M units as of 2022. earnings reportSo it is now second to the PlayStation 2 (in lifetime sales)

However, this is the only silver lining to a stormy sky. The nine-month ending December 31st saw a drop in switch unit sales to 14.91 Million, compared with 18.95 million last year. Revenue declined 5.6 percent for March’s fiscal year. The new game sales fell 4 percent in the same time frame. Pokemon Scarlet/Violet Titles were unable to offset this decline. As a result, the company has lowered its fiscal year forecast From 19 million to 18 million units with 5 million fewer games — continuing a downward trend from last year.

Nintendo said that the decrease in sales was due to the continuing shortage of semiconductors. However, the absence of consoles has also affected software sales. Sony did however set a new PS5 sales record last quarter. 7.1 million soldThis is an increase of 82 percent year over year.

The aging hardware is likely to be the root of Nintendo’s problems. With the Switch Lite and older Switch models experiencing a decline in sales, buyers are choosing the OLED model. The Switch is relatively less powerful than the PS5 or Xbox Series consoles. Sony, Microsoft and others are investing in subscriptions and games.

Last year, Nintendo stated that the transition to its next console was “implemented”.a major focus for usIt could become more urgent in the near future. It will be interesting for Nintendo to see if Switch is able to remain the most successful console ever. However, Nintendo will need to sell 33 million more units in order to surpass PlayStation 2.