Today's Edition
TOKYO (AFP)
With shops planning midnight launch parties after a run on pre-orders, Nintendo releases the Switch 2 on Thursday, hoping to score record early sales for a games console.
But the Japanese company has its work cut out to match the overall success of the Switch, which became a must-have during the pandemic with hit games such as Animal Crossing.
Featuring a bigger screen and more processing power, the Switch 2 is an upgrade to its predecessor, which has sold 152 million units since it came out in 2017 -- making it the third best-selling console of all time.
In Japan, Nintendo's online store had 2.2 million pre-order applications for the Switch 2.
Challenges for Nintendo include uncertainty over US trade tariffs and whether it can convince enough people to pay the high price for its new device.
The Switch 2 costs $449.99 in the US, more than Switch's launch price of $299.99. Both are hybrid consoles which can connect to a TV or be played on the go.
New Switch 2 games such as Donkey Kong Bananza and Mario Kart World -- which allows players to go exploring off-grid -- are also more expensive than existing Switch titles.
Pre-order Cancellations
Retailers in the US, Europe and other major markets are also gearing up for a rush of excited fans, with some stores opening at midnight to welcome them.
Supply pressures have even forced retailers to cancel orders, with Britain's Game saying it is "working hard to reinstate as many affected pre-orders as possible".
Nintendo forecasts it will shift 15 million Switch 2 consoles in the current financial year, roughly equal to the original in the same period after its release.
The Switch 2 "is priced relatively high" compared to its predecessor, so it "will not be easy" to keep initial momentum going, the company's president Shuntaro Furukawa said at a financial results briefing in May.
The Switch 2 has eight times the memory of the first Switch, and its controllers, which attach with magnets, can also be used like a desktop computer mouse.
New functions allowing users to chat as they play online and temporarily share games with friends could also be a big draw for young audiences used to watching game streamers.
In the US, Nintendo delayed pre-orders for the Switch 2 by two weeks as it assessed the impact from President Donald Trump's aggressive duties on trading partners around the world.
Furukawa said in May that "hardware for North America is mainly produced in Vietnam" where Trump is threatening a hefty so-called "reciprocal" levy of 46 percent.
But tariff uncertainty could in fact push consumers to buy a Switch 2 sooner, because they are worried that the price could go up.
And the stakes are high for Nintendo.
While the Super Mario maker is diversifying into theme parks and hit movies, around 90 percent of its revenue still comes from the Switch business, analysts say.
