Investing.com -- Nintendo, the Japanese video game company, has announced plans to launch the Switch (NYSE:SWCH) 2 console, a successor to its popular Switch device, later this year. The Kyoto-based firm did not disclose the pricing details for the new console but has promised to provide more information at a Nintendo Direct event on April 2.
The company will unveil the next-generation Switch 2 on April 2, which will begin the phasing out of the nearly eight-year-old flagship model. The new model resembles the current Switch in concept and design, as revealed by a two-minute teaser video posted on Nintendo's website on Thursday. The video did not reveal many specifics but showcased a new version of Mario Kart and confirmed the device's backward compatibility with games for the original Switch. The company has promised to disclose more details in April.
Game developers are hoping that the new Nintendo platform will revive the industry's momentum, which is currently competing with a wide range of entertainment options for users' time. Consoles are increasingly competing with popular PC games, leading to project cuts and staff layoffs throughout the industry. Many game publishers are preparing their best franchises for the new Switch in hopes of attracting players.
The new console will also support Nintendo's online gaming services, a feature that the company confirmed in November. The original Switch console has sold over 146 million units to date. However, dwindling momentum for the console, which was launched in 2017, led Nintendo to reduce its full-year profit and sales forecasts and report its fifth consecutive quarter of profit declines.
The announcement of a successor to the Switch has been eagerly awaited by consumers. The Switch faces competition from more powerful and modern updates from rivals such as Sony (NYSE:SONY) Group Corp. and Microsoft Corp (NASDAQ:MSFT). Alongside the features of the new hardware, focus is on Nintendo's ability to meet demand at the console's launch.
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