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CNBC
5 days ago
- Business
- CNBC
Nintendo Switch 2 hype leads to shortages, special store opening hours
Nintendo's flagship Switch 2, the successor to one of its most popular consoles, went on sale on Thursday with excitement and hype from fans leading to special store opening hours and shortages in some markets. The Japanese gaming giant is hoping the console can help sustain a monster rally in its shares which have risen nearly five-fold since the original Switch was released in March 2017. Nintendo is also hoping the Switch 2 can match the success of the original Switch, which has sold more than 152 million units and is the second-highest-selling device in the company's history, behind the Nintendo DS. And current demand looks strong, according to analysts. "Today is the biggest console launch of all time, so as expected, there is a frenzy of Nintendo fans checking stock availabilities at their local stores or eagerly awaiting deliveries," George Jijiashvili, senior principal analyst at advisory firm Omdia, told CNBC by email. The Switch's popularity is widely credited to its innovative portable design, which merged consoles with mobile gaming. People could play the game on their TV, then attach the controllers to the console's display and take it with them. Nintendo President Shuntaro Furukawa said in April that 2.2 million people in Japan had entered the lottery to purchase the Switch 2 on launch day. Furukawa said it was "beyond" Nintendo's expectations and is more than the company will be able to deliver to stores on Thursday. The shortages in Japan are expected to persist. "Demand in Japan for Switch 2 is sky high actually, perhaps higher than anywhere else," Serkan Toto, CEO of Tokyo-based games consultancy Kantan Games, told CNBC. "You cannot walk into a store anywhere in Japan to pick up a Switch 2 without a pre-order, and this will not change over the next weeks and months." In China, major online retailer said it had received 400,000 reservations for the console which began shipping on Thursday. Not everyone who reserves a console will end up purchasing one. In the U.S., Best Buy opened some stores across the country at midnight on Thursday (or late Wednesday depending on the time zone) for in-store purchases. Walmart said it was opening orders at midnight ET online as well as in-store at Supercenters at 6 a.m. ET. Walmart's website currently shows the console as sold out. In the U.K., there appears to be more availability. Amazon's U.K. page shows the Switch 2 available for delivery on Friday. Other retailers, like Currys and toy store Smyth's, also appear to have it in stock. "Given the pent-up demand, a launch day sell-outs were inevitable. However, we believe Nintendo is well prepared and expect supply to stabilize in the weeks that follow," Omdia's Jijiashvili said. Last month, Nintendo said it expects to sell 15 million units of the Switch 2 console in the fiscal year ending March 2026. However, analysts have said that is conservative. Kantan Games' Toto said he is forecasting sales of 20 million units in the first year. Omdia said it is expecting sales of 14.4 million Switch 2 consoles in 2025 alone, which would be ahead of the original Switch's debut year.
Business Mayor
08-05-2025
- Business
- Business Mayor
Nintendo forecasts sales of 15 million Switch 2 consoles as it gears up for launch
Nintendo said Thursday that it expects to sell 15 million units of its new Switch 2 console in the fiscal year ending March 2026. It is the first forecast for sales from the Japanese gaming giant since it announced the successor to its successful Switch device, which is due to go on sale in June. Nintendo also reported results for its fiscal fourth quarter and full year. Here's how Nintendo did in its fiscal fourth quarter ended Mar. 31 versus LSEG estimates: Revenue : 208.7 billion Japanese yen ($1.45 billion), compared with 216.16 billion yen expected. : 208.7 billion Japanese yen ($1.45 billion), compared with 216.16 billion yen expected. Net profit: 41.6 billion yen, versus 33.91 billion yen expected. Revenue fell 24.7% in the fourth quarter compared to the same period a year earlier, while profit plunged nearly 50%. This was largely expected as Nintendo fans await the Switch 2 and hold off on buying the current console. Earlier this year Nintendo slashed its forecast for sales of the Switch to 11 million units for the year ended Mar. 31. Nintendo on Thursday said it sold 10.8 million units of the Switch in the year, just shy of its own forecast and down 31% year-on-year. Market research firm Omdia expects Nintendo to sell 14.7 million Switch 2 units in 2025 alone, which would be about 10% ahead of the original Switch's debut year. 'Switch 2 will launch into a stronger position than its predecessor, with over 100 million active Switch users providing a strong foundation for adoption,' George Jijiashvili, Omdia's senior principal analyst, told CNBC by email. Tariffs in focus Investors are also focused on Nintendo's forecast for the fiscal year. The company expects net sales of 1.9 trillion yen, a 63% year-on-year rise but just short of LSEG estimates of 2 trillion yen. It expects net profit to jump 7.6% to 300 billion yen, below LSEG estimates of 388.8 billion yen. However, Nintendo noted that all of its forecasts are based on U.S. tariff rates effective Apr. 10 — following a pause in U.S. President Donald Trump's reciprocal tariffs for many countries. Nintendo in April delayed pre-orders for the Switch 2 in the U.S. after the initial announcement of Trump's sweeping tariffs on countries around the world. Nintendo's consoles are manufactured in Vietnam, which faces duties of 46% once the pause lifts. Attendees walk past an advertising board during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025. Isabel Infantes | Reuters Nintendo's President Shuntaro Furukawa said on Thursday that if additional tariffs are imposed and prices of its goods need to be adjusted, demand in the U.S. may decrease, Reuters reported. Duties could hit profit to the tune of tens of billions of yen, Furukawa added, according to the report. Serkan Toto, CEO of Tokyo-based games consultancy Kantan Games, said Nintendo's forecasts are typically conservative. 'Nintendo loves lowballing their forecasts, and the current climate around tariffs gives them all the reason to be more cautious than ever,' Toto told CNBC. He added that tariffs are creating an 'unclear future' for Nintendo, making it 'impossible' for any hardware maker to make sales predictions. 'What happens if the tariffs on imports from China stay this high for longer or if they are raised for Vietnam?' Toto said. 'If Nintendo needed to raise prices by $100 or more, all bets would be off and the company would be under enormous pressure in the all important U.S. market.' Read More How TikTok's rise sparked a short-form video race Switch 2 fuels stock rally Investors are now focused on how the successor to the console, the Switch 2, will perform following its launch. The Switch 2 will start at $449.99 in the U.S. and has improved features compared with its predecessor. As well as the 15 million unit sales forecast for the fiscal year ending March 2026, Nintendo said it expects to sell 45 million units of software during the same period. Games are important for the success of any console and Nintendo said the Switch 2 will launch with two titles — 'Mario Kart World' and 'Nintendo Switch 2 Welcome Tour.' There will also be Switch 2 versions of existing games such as 'Zelda: Breath of the Wild.' Nintendo is leaning on its popular characters such as Mario and Zelda to boost the appeal of the Switch 2. Nintendo first launched the original Switch in 2017 and it has become the Japanese gaming giant's second-best-selling console ever with over 150 million units sold. The firm managed to extend the life of the hardware thanks to hit games involving characters like Super Mario, franchises such as Pokemon and the expansion of its intellectual property into films. Investors are hopeful the company can continue to ride its wave of popularity with shares up around 30% this year and 64% over the past 12 months. READ SOURCE
