Nintendo launches new Switch console
The console is more powerful than the original. Photo: File
Japanese video game giant Nintendo unveiled the new version of its hugely popular Switch console on Wednesday, with the update eagerly awaited by both gamers and investors.
Very similar visually to its best-selling predecessor, which was launched in 2017, the Switch 2 features a larger screen, a wider stand, and retains its detachable "Joy-Con" controllers.
It will also be more powerful than the original model while keeping its hybrid console concept, allowing players to use it both on-the-go and connected to a TV – a key factor in the success of the first Switch which has sold 150 million units worldwide.
"When you ask gamers, they mention performance and game software, but in reality, they seem to want the same experience as the original Switch," said Hideki Yasuda, an analyst at Japanese brokerage Toyo Securities.
"I think what they truly want is simply higher performance."
Despite recent diversification efforts into films and theme parks, Nintendo's core business still relies heavily on video games.
The company cut its profit forecasts in February due to slowing sales of its star console.
Industry rumours suggest a possible June release, with Yasuda estimating six million units would be initially made available.
In the long run, Nintendo could sell 19 million units in 2025 and 21 million the following year, according to Toyo Securities estimates.
Another key factor is pricing, which experts estimate will range from $430 to $540.
Uncertainty over US import tariffs also remains a concern, although Nintendo has recently switched an increasing amount of production from China to Vietnam, which faces lower customs duties.
As the video game industry faces a global slowdown, marked by waves of layoffs, the arrival of the Switch 2 could revitalise console sales which have been declining worldwide. AFP
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