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TOKYO-
Nintendo
Co.
NTDOY -1.78%
plans to release a new version of its video game console Switch the next year to maintain the momentum of device sales, according to suppliers and other people with direct knowledge of the plan.
Sales of the switch, introduced in March 2017, are still strong but no longer produce the positive surprises that marked the first year of the machine on the market. Nintendo shares, which rose sharply last year, dragged behind the broader stock market this year. The decision to update the switch suggests that the Japanese company, based in Kyoto, is taking swift action to ensure that its flagship product does not lose competitiveness.
Nintendo is still discussing new hardware and software features to be included in the upgrade and evaluating the cost, an informant said.
One option is to improve the display, they said. The current switch uses a low-end LCD screen without some of the standard technologies of the latest LCD screens for smartphones.
Updating the display with these technologies would make it brighter, thinner and more energy efficient. The updated switch should not adopt organic light-emitting diode panels or OLED panels used
Apple
Inc.
AAPL 1.22%
iPhone X series.
Nintendo plans to launch the new Switch in the second half of 2019, possibly as early as the summer, people said.
A spokesman for Nintendo declined to comment.
Between its launch last year and June 30 this year, Nintendo sold 19.7 million units of the Switch, a pace that compares favorably to that of
Sony
Body
PlayStation 4, the most popular console among the current generation of video game players. The switch can be used both as a home console and as a portable game console.
Nintendo said it wants to sell 20 million units by March 2019, and analysts expect sales to reach that goal assuming some popular software plans for the end of the year. 39, year arrive at the hour. Nintendo has announced plans to introduce "Super Smash Bros. Ultimate" on December 7th.
Video game manufacturers typically offer new consoles every five to six years, and it is common for them to update devices in the middle of their life cycle to maintain momentum. Sony launched the PlayStation 4 in November 2013 and has updated it with a cheaper version in September 2016 and a high-end model two months later.
A new switch would follow this pattern. Shigeru Miyamoto of Nintendo, who has created many of his best games and is now a creative, said in February that he wanted Switch's life cycle to be longer than usual, suggesting that next year's material day might not be the last.
The upgraded switch would probably share many features with the current version and would be compatible with existing Switch gaming software.
Software publishers and other industry players are looking to see if Nintendo will clarify the future of its portable 3DS video gaming device when deciding on the next switch.
Nintendo has announced that it will continue to sell 3DS machines as they are a safe and affordable option for children. But new versions of games for the platform are down and some popular franchises, including Nintendo's own "Pokémon", switched to the switch this year.
A manager from one of the software makers said that the 3DS was increasingly overshadowed by smartphones well suited to portable gaming. He said that he was waiting for a "clear message" from Nintendo about what he would do with the 3DS series when a new switch will be launched.
-Yang Jie in Beijing contributed to this article.
Write to Takashi Mochizuki at [email protected]
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