Nintendo raised its Switch 2 sales forecast on Tuesday, boosting confidence that the console will perform strongly during the busy holiday season.
The Kyoto-based company unveiled the Switch 2 , its most expensive gaming hardware yet, priced at $450, in June, alongside flagship titles priced at $80.
Nintendo now expects to sell 19 million Switch 2 consoles by March next year, up from its previous forecast of 15 million. As of September, the device had sold 10.4 million units. The company also raised its full-year operating income forecast by 16 per cent to ¥370 billion ($2.4 billion) and increased its dividend payout ratio to 60 per cent.
Nintendo is riding high on the strong momentum of the Switch 2 among consumers, with its stock up 40 per cent this year.
Nintendo has made significant hardware upgrades to the Switch 2, including a larger screen, improved Joy-Con controllers, and new social features. The Switch 2 is an upgrade to Nintendo’s blockbuster Switch console, which was released in 2017 and sold over 150 million units. Both are hybrid systems that can connect to a TV or be played on the go. Games such as Donkey Kong Bonanza and Mario Kart World have proved popular on the Switch 2.
A kid tries the Switch 2 at Nintendo’s flagship store in San Francisco, California. (Image credit: Anuj Bhatia/Indian Express)
Investors weren’t optimistic when Nintendo launched the Switch 2, calling it a hard sell at $450. Many also questioned whether the Switch 2 would be different enough from its predecessor to bring new users into the Nintendo ecosystem. However, with the Switch 2, Nintendo has flipped the script , and console sales appear solid. Investors are now eyeing the crucial holiday quarter, when Nintendo typically does its strongest business and video game sales are at their peak. Japan and the US remain Nintendo’s key markets.
The success of the Switch 2 proves that consumers are willing to pay a premium for a game console , especially when it’s launched by Nintendo. For Nintendo, the Switch 2 also represents a shift in strategy; in the past, its new devices have typically come with entirely new names. This time around, many existing Switch games are also compatible with the Switch 2 with beefier graphics, alongside brand new titles.
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