The Japanese firm has already surpassed the original Switch’s launch figure of approximately 2.7 million sales in its first month back in 2017. The figures, announced by the company on Wednesday, are promising for its goal of selling 15 million units by March of next year. They also strengthen analysts’ forecasts that Nintendo could sell even more if supply increases.
Gamers from Tokyo to San Francisco queued for hours last week to acquire one of the most anticipated devices of the year. The much-anticipated Switch 2 follows the original, which became a global phenomenon with its innovative hybrid design that supports gaming at home on a TV as well as on the go.
The launch of the new Switch is seen as a pivotal moment for the industry, influencing business strategies among partners and competitors for years ahead. Amidst tightening margins and rapidly escalating development costs, a popular new console could invigorate the sector and counteract the growing dominance of a few leading live-service games.
Addressing soaring demand is the first significant challenge Nintendo must tackle.
President Shuntaro Furukawa has expressed regret after customers left the Switch 2 lotteries empty-handed. The Kyoto-based company has urged its partners to accelerate production of the console. Additionally, it has secured agreements with Japanese online marketplace operators like Rakuten Group Inc., Mercari Inc., and LY Corp. to deter resellers from exploiting the hardware’s limited availability.
The console is primarily produced in China by partners, including Foxconn Technology Group. Nintendo’s shares, which have fluctuated due to concerns about potential tariff impacts on supply, fell by over 3% in Tokyo.
“The pace is good,” stated Hideki Yasuda, an analyst at Toyo Securities. “The challenge will be maintaining assembly capacity and increasing production in the future.”
A lasting shortage might drive consumers to alternative options and diminish momentum.
Nintendo aims to sustain the launch momentum for as long as possible, Furukawa told analysts during an earnings briefing in May. This becomes more challenging due to the Switch 2’s higher retail price compared to its predecessor and the increasing weakness in the global economy.
Furukawa has also indicated that the company might consider raising the console’s price in the future, depending on tariff measures from US President Donald Trump.
