Nintendo Co. sold 3.5 million-plus units of the Switch 2 in just four days, a record-breaking start for the company’s first new console in eight years.
The numbers, released by the company Wednesday, bode well for its target to sell 15 million units by March next year. They also reinforce analysts’ projections that Nintendo may be able to sell far more if it can pump up supply.
Catching up with runaway demand is the first major challenge Nintendo now faces. President Shuntaro Furukawa has apologized after customers came away from lotteries for the Switch 2 empty-handed. The Kyoto-based company has asked its partners to speed up production of the console. It’s also secured agreements from Japanese online marketplace operators such as Rakuten Group Inc., Mercari Inc. and LY Corp. to discourage resellers from taking advantage of the hardware’s scarcity.
A chronic shortage may spur consumers to turn elsewhere and flatten momentum. Nintendo’s priority is to sustain launch momentum for as long as possible, Furukawa told analysts at an earnings briefing in May. That’s more difficult due to the Switch 2’s higher retail price compared with its predecessor and growing weakness in the global economy. Furukawa has also warned the company may consider raising the console’s price in the future, depending on US President Donald Trump’s tariff measures.
What does Bloomberg intelligence say
Nintendo, Sony and Microsoft could be more affected than other gamemakers by tariffs because they also have hardware businesses. Prices for the Nintendo Switch 2 could still be hiked by 7-8% for US buyers — 30% in our worst scenario — despite the 90-day tariff “truce,” our scenario shows, given the high US duties on the main production countries.=