Nintendo is gearing up to announce a new console, tentatively named Switch 2, which promises 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 to 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 maintain stable demand and brisk sales, reflecting its established presence in the market.

In addition to the new console, Nintendo is also working on a remaster of the Wii U title 'Xenoblade Chronicles X,' a music app for phones, and a new alarm clock product.

The upcoming console is expected to launch with access to a library of over 10,000 games on its first day, along with new titles like Yooka Replaylee and My Time At Evershine already in development.

Gamers are not anticipating radical changes with the Switch 2; instead, they are looking for enhancements such as improved power, a more engaging user interface, and a faster online store.

While backward compatibility is generally beneficial for consumers, historical examples like the Wii U suggest it does not guarantee commercial success.

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.

Speculated technical specifications for the Switch 2 include a new Nvidia Tegra chip, options for varying RAM capacities, and 256GB of storage.

Analysts view the backward compatibility feature as a positive sign, indicating that the new console will build on the existing platform rather than present a risky venture.

Despite the excitement surrounding the new console, Nintendo has recently focused on releasing various unrelated products, including a $100 alarm device and niche Wii U game ports.

In a humorous twist, the article suggests that Nintendo might consider a return to virtual reality with a whimsical headset, despite the current challenges facing the VR market.