Nintendo has historically faced challenges in transitioning between console generations. Unlike its competitors, the company relies heavily on its own games to drive hardware sales, creating a delicate balance between maintaining interest in existing consoles and preparing for the next generation. This has often led to a decline in momentum towards the end of a console's lifecycle, resulting in a slow start for the subsequent generation. The Switch, however, has maintained a large and engaged audience, with 112 million annual users in 2022.
Despite a slowdown in sales, Nintendo games continue to perform well, with record-breaking launches for Pokémon Scarlet and Violet, and Splatoon 3. To stimulate console sales and generate engagement, Nintendo is releasing two major titles: the Super Mario Bros movie and The Legend of Zelda: Tears of the Kingdom.
The Mario movie has already shown promising results, with a special hardware bundle and promotional activity on Mario titles. The Legend of Zelda: Tears of the Kingdom is expected to build on the success of its predecessor, Breath of the Wild, with a focus on user-generated gameplay and emergent elements.
A successful launch of Tears of the Kingdom is crucial for maintaining momentum and potentially converting a large and active audience to the next generation of Switch consoles.