Nintendo is gearing up to announce a new console, tentatively named Switch 2, which will feature backward compatibility with existing Nintendo Switch games.

Despite a significant drop in sales, with a 34% decline to 523 billion yen ($3.4 billion) for the April-September 2024 period, the company reported a profit of 108.7 billion yen ($715 million).

Nintendo President Shuntaro Furukawa emphasized that the Switch continues to see stable demand and brisk sales, thanks to its established presence in the market.

The trend of backward compatibility is becoming increasingly common in the gaming industry, with platforms like PlayStation 5 and Xbox Series X setting high expectations for new consoles.

Gamers are not anticipating radical changes with the Switch 2; rather, they are looking for enhancements in power, user interface, and online store speed.

Recent reports indicate that Nintendo is actively developing backward compatibility features, supported by insights from supply chain and game development sources.

While backward compatibility is a promising feature, historical examples like the Wii U show that it does not guarantee commercial success.

Upcoming titles such as Yooka-Replaylee and My Time At Evershine are already in development for the new console, indicating a focus on future releases.

The new console is expected to launch with access to a library of over 10,000 games on its first day, which could significantly enhance its appeal.

In addition to the new console, Nintendo is working on various projects, including a music app for phones and a remaster of the Wii U game 'Xenoblade Chronicles X'.

The remastered edition of 'Xenoblade Chronicles X' will feature enhanced visuals and an expanded storyline, addressing previous criticisms about the original game's depth.

The new hardware is anticipated to deliver performance boosts, paving the way for more graphics-intensive gaming experiences.