U.S. online stores put ‘out of stock' signs as Nintendo Switch 2 sales hit record highs
Nintendo sold more than 3.5 million units of its flagship Switch 2 gaming system in the four days following its launch, with online stores of major U.S. retailers putting up 'out of stock' signs.
The record-breaking start for the company's first new console in eight years, puts Nintendo on the path to realizing its aim of selling 15 million units of the Switch 2 console in the fiscal year ending March 2026.
However, analysts continue to believe that those expectations are modest, and forecast the strong initial demand to sustain.
'The market expected a record from Nintendo, and as it turns out, Nintendo delivered,' Serkan Toto, CEO and founder of gaming industry consultancy Kantan Games, told CNBC.
'All signals prior to launch pointed to significant demand, and I believe we will see further records broken over the next weeks or months,' he added.
Toto has maintains that the Switch 2 will sell over 20 million units in its first 12 months. David Gibson, senior research analyst at MST Financial told CNBC that he expects 20 million sales for the year ending March 2026.
The Switch 2, which was released on June 5, has been met with much fanfare, with people lining up for hours ahead of midnight releases at Nintendo stores.
'Fans around the world are showing their enthusiasm for Nintendo Switch 2 as an upgraded way to play at home and on the go,' Nintendo of America President and Chief Operating Officer Doug Bowser said in a statement, adding the company was thankful for the response.
Tokyo-listed shares of Nintendo, which have gained nearly 30% so far this year, were down 3.5% on Wednesday, LSEG data showed. The company has seen its shares rise nearly fivefold since the original Switch debuted in early March 2017.
It remains to be seen if the Switch 2 can recapture the magic of its predecessor, which had set the bar with 15 million unit sales in its first year. It went on to sell more than 152 million units to become the second-highest selling Nintendo device ever, behind the Nintendo DS.
The record initial sales of the Switch are in line with the strong demand analysts had predicted. However, the rush has put into question Nintendo's ability to meet demand.
Retailers including Walmart, GameStop, Target and Best Buy were out of stock of the consoles, their online stores showed Wednesday.
In April, Nintendo's Bowser told CNBC that the company had been working with 'retail partners to ensure there's ample supply for not only the launch weekend, but well beyond.'
However, Nintendo President Shuntaro Furukawa stated the same month that 2.2 million people in Japan had entered the lottery to purchase the Switch 2 on launch day, exceeding expectations and what the company had initially planned to deliver to stores.
Kantan Games' Toto said shortages in Japan were expected to persist, but would be less impactful elsewhere.
'Except for Japan where demand for Switch 2 is extraordinarily high, it looks like fans who really want the console and invest time in trying to secure one actually can get one,' he said. 'It might take a while, but as far as can be monitored, supply seems to be more robust than around the launch of the original Switch in 2017.'
President Donald Trump's 'reciprocal tariffs' on most countries around the world also present headwinds for the Switch 2.
In April, the company announced that it would delay preorders of the Switch 2 in the U.S. while it considers the impact of tariffs.
The Switch 2 retails for $449 in the U.S., which makes it Nintendo's priciest console to date.
Nintendo's Bowser said in April the company was going to 'monitor where tariffs are going' before making any further decisions on price hikes.
MST Financial's Gibson said that a resolution to Trump's tariffs and lower duty rates could see the Switch 2 prices drop in the U.S.
The Switch 2 builds on the success of the original Switch, featuring a larger screen and improved performance. The system also introduces the new GameChat2 feature, which allows players to voice or video chat with friends online and share game screens.
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