Nintendo’s president, Shuntaro Furukawa, unveiled on Wednesday that the current Switch games will be playable on its future console. This strategy is aimed at retaining the existing customer base and facilitating a smooth transition to the new device, scheduled for announcement by the fiscal year ending March 2025.

In a strategic briefing, Furukawa emphasized the importance of allowing the large and active community of Switch users to continue enjoying their existing game libraries on the upcoming console. He stated, “Ensuring our loyal customers can seamlessly transition to our next system with their beloved game collection is a top priority for us.”

The decision to enable backward compatibility suggests that the forthcoming console will likely maintain a similar design to the Switch, according to industry experts. “This move suggests continuity in design with the current model, which is not surprising but reaffirms Nintendo’s commitment to user convenience,” said Serkan Toto, CEO of Kantan Games consultancy.

Despite the robust sales performance of the Switch, combining home and portable gaming capabilities and achieving sales of over 145 million units, there’s been a noticeable slowdown in hardware sales. This has prompted Nintendo to lower its yearly sales projection by 7% to 12.5 million units, reflecting market saturation.

Conversely, the software segment has demonstrated strong performance, with sales surging 29% to 39.6 million units in the last quarter. This momentum is expected to continue, driven by a robust lineup of game releases.

Nintendo has managed to sustain the Switch’s appeal through periodic hardware refreshes and a growing selection of games. These efforts are crucial as the company gears up for the release of its next-gen console.

The announcement has been positively received in the financial markets, with Nintendo’s shares climbing 6% in Tokyo trading, outperforming the 3% increase in the benchmark index, indicating strong investor confidence in the company’s forward-looking strategies.