Nintendo ADR NTDOY confirmed its next gaming console, often referred to as the Switch 2, will support backward compatibility with Nintendo Switch games.

Shuntaro Furukawa, Nintendo’s president, shared the news this morning on X: “At today’s Corporate Management Policy Briefing, we announced that Nintendo Switch software will also be playable on the successor to Nintendo Switch.”

See Also: Nintendo Reduces Switch Sales Target, Eyes 2025 For Next-Gen Console Unveil

The eagerly anticipated console is projected for a 2025 release.

Alongside backward compatibility, Nintendo Switch Online (NSO) will also be available on the upcoming console, providing subscribers a smooth transition to the next-gen system.

With over 34 million active members as of Sept. 30, 2024, NSO has become a significant component of Nintendo’s revenue and fan engagement.

The announcement sparked an optimistic response from investors, with Nintendo’s stock closing up by 5.8% at 3:30 p.m. Japan time.

Serkan Toto, CEO of the gaming consultancy Kantan Games, noted the significance of the market’s reaction on X: “Investors think this is a sign Nintendo’s next device will not be a risky experiment but rather a continuation.”

While the announcement brought positive news for Nintendo’s future, the company adjusted its projections for the current Nintendo Switch console.

As of the end of September, Switch hardware sales were down 31% year-over-year, prompting a reduction in Nintendo’s sales forecast from 13.5 million units to 12.5 million for the fiscal year.

To date, the Nintendo Switch sold over 146 million units globally, and Nintendo revealed over 100 million people of all ages continue to play the console.

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Photo by 卡晨 on Unsplash.