The Nintendo Switch 2 launches this week — and it'll give a much-needed boost to Target and Best Buy

Business Insider

2 days ago

Whether it's Black Friday, a limited-edition Stanley Quencher, or something new from Taylor Swift, there's nothing like a blockbuster sales event to get retailers' juices flowing.
And at a time when trade chaos and economic uncertainty have dimmed the financial results for companies like Target and Best Buy, Thursday's launch of Nintendo's new Switch 2 gaming device is a welcome shot of good news in the retail world.
Both big box brands touted the device in recent earnings calls, with plans to tap into good-old-fashioned shopping enthusiasm, complete with midnight lines and commemorative merch.
"There's a ton of excitement for this, and we plan to be the retail destination for all things Nintendo Switch," Target chief commercial officer Rick Gomez said during an investor call on April 21.
Last week, Best Buy CEO Corie Barry said some 70% of preorder customers are opting to pick their devices up in-store on launch day.
"Best Buy is uniquely positioned for the Switch 2 launch, being one of the only retailers opening their doors at midnight on June 5 for eager customers to pick up their consoles or grab another game," she said.
The companies have good reason to pull out the stops for Nintendo's hotly anticipated handheld device: Piper Sandler estimates that Best Buy's comparable sales will enjoy a 1% lift for each of the next four quarters due to Switch 2 sales.
Following a delay to asses the impact of President Donald Trump's tariffs, Nintendo resolved some shoppers' concerns when the company said it would not raise the price of the device itself. Some accessories will see price increases, though.
Nintendo president Shuntaro Furukawa said in an earnings call that products destined for the US market are primarily manufactured in Vietnam, which would be subject to the 10% baseline tariffs under Trump's plan.
The company said it now expects to sell 15 million Switch 2 devices this fiscal year. In Japan alone, the company saw a flood of 2.2 million applications in two weeks to preorder the game console.
Most retailers tracked by Business Insider have already sold out of their available pre-orders.
To manage demand, Target said it is implementing a ticketing system, whereby store employees will distribute physical or digital tickets to shoppers in line before stores open, and that there will be a one-console-per-customer limit.
Best Buy said"nearly all" US stores will open at midnight on the East Coast, which means West Coast shoppers can get their hands on a Switch 2 minutes after 9 p.m. on Wednesday. The electronics retailer is even issuing a limited-edition coin to mark the occasion.
The popularity of the original Switch offers retailers a lot to be optimistic about at a time when consumers have gotten increasingly guarded about their dollars and (as Best Buy's Barry pointed out) tech companies haven't really been bringing a lot of newness, in terms of hardware.
"I think you're going to see a lot of innovations," Barry said of the gaming device category during last week's earnings call. "We continue to remain pretty excited about that space as well."