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Nintendo Ups its Game With Launch of the New Switch 2

Nintendo Ups its Game With Launch of the New Switch 2

Can a Japanese company sell an expensive videogame console in the midst of a global trade war—and with a potential recession looming? Much is riding on Nintendo 7974 2.11%increase; green up pointing triangle pulling that off.
Nintendo will launch the Switch 2 on June 5 for a starting price of $450 in the U.S., according to plans announced by the company Wednesday. The price is a sizable bump up from the $300 that the original Switch launched for in 2017. But that device has also become Nintendo's most popular home console ever—selling nearly 151 million units to date.
Nintendo has also never gone eight years between new console launches; a gap of five to six years has been the company's norm, stretching back to the mid-1980s. That should mean plenty of pent-up demand for a machine that is also the only way for gamers to experience iconic franchises such as Mario, Donkey Kong and Zelda that are exclusive to Nintendo's platforms.
The Switch 2 includes several new features and capabilities such as in-game chat. It will launch with a new iteration of the 'Mario Kart' series whose predecessor game sold more than 67 million units on the original Switch.
Still, home runs are never a guarantee in the videogame business. Nintendo knows this all too well—the company has often followed popular consoles with less popular ones.
And the Switch 2 has the unfortunate timing of hitting the market in the midst of a global trade war, where the U.S. is ratcheting up tariffs on foreign goods, and foreign countries are responding in kind. Many of Nintendo's devices are produced in China, so they could be hit with a 20% tariff.
Still, Wall Street isn't betting on a miss. Analysts expect Nintendo's revenue to surge 62% in the current fiscal year ending in March on the strength of the new console, according to consensus estimates from Visible Alpha. Double-digit-percentage growth is expected to remain for the next two years, with fiscal 2027 revenue expected to exceed previous peaks from past console cycles.
That has propelled Nintendo's share price 12% higher so far this year—a period in which most other game stocks and broad market indexes have slumped on trade-war fears. 'Good [intellectual property], preferably owned and controlled, is the antidote to low-end supply disruption,' MoffettNathanson analyst Clay Griffin wrote in a note to clients last month. 'Nintendo has it in spades, has clear cost superiority, and Switch 2 will cement its ability to capture more 'platform' economics than ever before.'
The new Switch should easily keep Nintendo in the game.
Write to Dan Gallagher at dan.gallagher@wsj.com

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More than performance, I found the Switch 2 version better due to the controls. I prefer to play shooters with a mouse, and Fortnite supports the Joy-Con 2's mouse controls. I found it a more accurate gaming experience than using the right analog stick to aim.

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