Expansion of Switch 2 propels Nintendo's commercial success
Nintendo's Switch 2 Soars to Success
Nintendo has launched a new racing game from the popular "Mario Kart" series, exclusively for the Switch 2, a significant upgrade to the original console that has been selling briskly since its release.
The Switch 2, priced at 470 euros, is already a hit, with Nintendo selling over 6 million units in under two months. This makes it the fastest-selling Nintendo console to date, outpacing the original Switch's initial sales rate.
The original Switch, which is still available for around 290 euros, has sold about 0.98 million units in the same initial period after launch, with a lifetime total now at 153.1 million units. The Switch 2's success can be attributed to its ability to be used both on the go and connected to a television, as well as its improved image quality and more processing power.
Nintendo's commitment to console-based gaming has been instrumental in its sales success. The company remains committed to the idea that full-fledged games featuring popular characters like Super Mario can only be played on its own consoles.
Despite the higher price tag and lower profit margins on Switch 2 hardware, Nintendo's profit grew by 18.6% year-on-year to 96 billion yen. The company's quarterly revenue increased by 132% year-on-year to 572.36 billion yen.
The Switch 2's success comes at a time when the gaming industry is shifting towards game streaming. However, the Switch 2 does not rely on cloud gaming, with games running directly on the console.
There are still shortages and waiting times for the Switch 2 in many countries, indicating a pent-up demand due to being a significant upgrade to the console eight years after the original was released. By the end of June, Nintendo had sold 5.8 million units of the Switch 2.
In the first four days after its launch, Nintendo delivered 3.5 million units of the Switch 2. The Switch 2's sales have helped Nintendo sell over 150 million units of various Switch console models. Nintendo has not changed its sales forecast for the current fiscal year, remaining at 15 million units.
The Switch 2's improvements, while not detailed explicitly, are implied by the margin differences between the original Switch and the Switch 2. The exact feature improvements are not cited, but it is suggested that the Switch 2 may include upgraded or more costly components to enhance performance or features relative to the first model.
References: [1] Nintendo's Switch 2 sells over 6 million units in under two months [2] Nintendo's Switch 2: A Look at Its Sales and Profit Margins [3] Nintendo's Switch 2 Off to a Strong Start, Selling Over 6 Million Units
The Switch 2, though boasting superior technology over its predecessor, remains a gadget that operates without the need for cloud gaming, contrasting the emerging gaming industry trend. Despite the initially closed market for exclusive games, Nintendo has sold over 5.8 million units of the Switch 2 within two months, outperforming the original Switch's initial sales rate.
