Tokyo (AFP) – Nintendo on Friday said quarterly revenue had more than doubled year-on-year thanks to the Switch 2, which became the world’s fastest-selling console after its launch in early June. Pent-up demand for the new gadget from the “Super Mario” gamemaker fuelled fan excitement at the release that saw sold-out pre-orders and midnight store openings.
Like the hugely popular original Switch, the Switch 2 is a hybrid console that can be handheld or connected to a television, with a bigger screen and more processing power than its predecessor. It smashed industry records by selling 3.5 million units in its first four days, and Nintendo said Friday that the figure had increased to 5.8 million units by the end of June. “Net sales increased significantly in the first quarter, due mainly to the launch of Nintendo Switch 2,” the Japanese company said as it reported a 132 percent year-on-year jump in sales for April-June, to 572 billion yen ($3.8 billion). Net profit in the quarter rose 19 percent year-on-year.
However, a challenge for Nintendo will be maintaining a supply of hit games for the new system, gaming industry consultant Serkan Toto told AFP. “There are new games from the Pokemon, Metroid, and Kirby franchises coming later this year, but some fans have already started to ask for even more titles,” he said. But “the launch of Switch 2 has surpassed many people’s expectations” and it will be hard for another console to match its strong start, Toto added. “Nintendo should be able to comfortably ride on this momentum through the holidays and into 2026,” he predicted.
– ‘Major comeback’ –
The company expects to sell 15 million Switch 2 units by the end of March 2026 — a target it left unchanged on Friday. Nathan Naidu of Bloomberg Intelligence said Nintendo was “likely” to hike this number, having already sold 40 percent of the target. The Switch 2 launch positions the company “for a major comeback after four straight years of lacklustre top-line momentum… barring punishing US tariffs that might prompt Nintendo to hike hardware prices,” he wrote Friday.
While Nintendo is diversifying into hit movies and theme parks, consoles remain at the core of its business. The original Switch soared in popularity during the pandemic, with games such as “Animal Crossing” striking a chord during long lockdowns worldwide. It has sold 153 million units since its 2017 release, making it the third best-selling console of all time after Sony’s PlayStation 2 and the Nintendo DS. The Switch 2, which has new features including controllers that can also be used like a desktop computer mouse, costs $449.99 in the United States — more expensive than the launch price of $299.99 for the original.
“Once the hardcore Nintendo fans are tapped out, the company will need to get to the next level by convincing mainstream players to make the jump to Switch 2,” Toto noted. But the postponed launch of the hotly anticipated “Grand Theft Auto VI” (GTA6) by US publisher Rockstar Games from this year to May 2026 will be a boon, he said. “If GTA6 (had) launched this year, it would have sucked almost all the oxygen out of the room and made marketing Switch 2 definitely harder for Nintendo.”
© 2024 AFP
