intendo reported that it will be launching its Switch 2 gaming device on June 5, as a long-awaited successor to its hybrid home-portable Switch,
retailing for $449.99. The announcement was made on Wednesday, and more details about the new device have also been revealed.
Analysts are looking for a smoother transition to the new device, as the device has received upgraded hardware, and are also looking for it to function as its predecessor. It is also worth mentioning that The Switch 2 is now offering a bigger screen, comes with mouse controls, and also features a chat function that is available via a specific button that can be found on the controller.
It is also worth noting that the device will be retailed at $449.99 in the US and in Japan for $334 or 49,980 yen for the Japanese language system and for 69,980 yen for the multi-language model.
Serkan Toto, the founder of Kantan Games consultancy, said, “The price is a bit higher than what was widely expected.”. Nintendo also probably took into account the current inflationary environment and the $699.99 price tag Sony put on the PS Pro last year.
We can also see that the Switch has sold more than 150 million units, coming with hardware refreshes, and also being hit games from franchises such as “Super Mario” as well as “The Legend of Zelda”, as it is extending its lifecycle.
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Atul Goyal, an analyst from Jefferies, wrote in a client note, “is a more premium, ambitious platform with broader software and ecosystem depth than expected.” The games that were announced are “Mario Kart World” and performance-boosted versions of “Zelda” games and Classic Cube titles that will be ready for subscribers to Nintendo Online.
We can also acknowledge that Nintendo’s Switch launched in 2027 was sold poorly, being priced at $299.99.
An analyst from Minami Munakata named Goldman Sachs, wrote in a note before the announcement happened, “Judging from the level of work-in-progress on the company's balance sheet, Nintendo is likely aiming for shipments of over 10 million units in the first year”.
The Switch 2’s launch came when elevated trade tension arose as US President Donald Trump introduced tariffs regarding goods that are imported into the US. Goyal is also writing about the difference in pricing in Japan vs the US, as the lower pricing from Japan “implies U.S. pricing factors in (the) tariff impact”.
Goldman Munakata also wrote, “The situation appears similar to the transition from Sony's PS4 to PS5, where earnings continued to expand largely without any downcycle.”
The shares from Nintendo also fell by 3% on Thursday following the announcement, also triggering a benchmark index that was down by 3.5%. A market strategist at Asymmetric Advisors also wrote in a note on the announcement, mentioning Nintendo “has already strongly outperformed the market. He also added, “We think it is unlikely that the new hardware will be big enough to justify its current share price.", reported Reuters.
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