Tokyo (AFP) – Nintendo shares surged Thursday after the gaming giant boasted of higher than expected demand in Japan for pre-orders of its hotly anticipated Switch 2 console. The successor to the Switch — the third best-selling console ever behind Sony’s PlayStation 2 and the Nintendo DS — is set to hit shelves worldwide on June 5.
And the stakes are high: although Nintendo is diversifying into theme parks and hit movies, analysts say around 90 percent of its revenue comes from the Switch business. An X post attributed to company president Shuntaro Furukawa published Wednesday said there had been 2.2 million pre-order applications for the new console in Japan. This is an “extremely high” number which “greatly exceeds our initial expectations”, the post said.
“It also significantly exceeds the quantity of Switch 2 consoles” that can be delivered on the release date. “Therefore, it is expected that a considerable number of customers will not win the lottery when the winners are announced” on Thursday, for which “we deeply apologise”. Shares in the Kyoto-based company gained as much as 5.5 percent on Thursday following the bullish announcement.
Nintendo in early April revealed details about the Switch 2, which like its predecessor is a hybrid console that can be used on the go or connected to a TV screen. However, the price has raised eyebrows at over a third more than the original Switch in major markets including the United States, where it will cost $449.99. A Japanese-only version for domestic consumers will be cheaper at 49,980 yen ($350).
“Uncertainty around reciprocal tariffs, global trade and higher component costs” mean a price drop is unlikely within the next five years, industry research firm Niko Partners said earlier this month. Nintendo delayed pre-orders for the Switch 2 in the United States by several weeks as it assessed the fallout from US President Donald Trump’s trade levies.
© 2024 AFP
