Here is why Nintendo is triumphing with the Switch 2

In store, it’s madness.Image: keystone

Since its release, the Switch 2 has exceeded all the expectations of the Japanese manufacturer, Nintendo. But he still has to take some tests to measure his real success.

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The Japanese company has just officially confirmed what analysts predicted for several months before the start of sales. The Nintendo Switch 2 has known the most successful start for a console. More than six million in the world have passed in seven weeks. This is by far the biggest launch ever made for a video game console.

For comparison, during the first weeks, the figures multiplied by two compared to the previous model. The Switch 2 has also Beate hands down the previous record of PlayStation 5. Sony had sold 3.4 million in the first four weeks of marketing. Nintendo crossed this threshold in just four days, Because it was able to provide many more consoles during the launch.

Even more impressive: the more than six million items have been Bought by consumersthey are therefore not deliveries to stores. However, this would not make a big difference, because the Sweights of Switch 2 are always exhausted very quickly.

The phenomenon has taken such a magnitude that Nintendo has promised to increase production, and indicated in its annual report:

This success manifested itself from the first days of availability. According to the Japanese brand, more than 3.5 million switch 2 left in four days. For the closed quarter at the end of June, this figure increased to 5.8 million (closer to a million switch 1). The entertainment group has thus more than doubled its turnover during the last quarter in annual comparison. The profit climbed 18.6%.

Baptism of fire still to come

The original console is today over eight years and many Nintendo fans were looking forward to the rest. So we expected a successful start. But it remains to pass the real test. The Christmas period will say if the lastborn will again convince families and occasional players. The mixture of exclusive games, some of which are addressed to an older audience, and an unrivaled choice of children’s games was one of the decisive factors of the enormous success of Switch 1.

Children are not the only ones to have fun, adults aged 20 to 40 are the first concerned.Graph: Nintendo

The Switch 2 certainly offers better image quality and greater computing power for a more fluid game experience. But with a price from 470 francs, It is as much more expensive than the original. Those for whom do not attach real importance to the graphics could therefore conclude that an upgrade is not worth it. Especially since some Nintendo games like Pokémon Legends: Z-A or Metroid Prime 4 will come out in parallel for each of the consoles.

On the other hand, More and more games will only work on the new model for technical reasonsenough to plead in favor of the purchase of a switch 2. This will be the case in particular for the last arrivals of Nintendo, Mario Kart World et Donkey Kong Bananza. These two would have been impossible to play on Switch 1, which has become obsolete.

The success of Mario Kart

By far the most popular on the Switch 2, Mario Kart World sold 5.63 million copies over the first three weeks. In other words, almost 97% of the first customers of the Switch 2 also obtained the last Mario map. This extremely high percentage is also explained by the marketing of a pack. The 509 francs offer has pleased, knowing that the Switch 2 alone costs 469 francs.

Nintendo’s plan for Boost his new console with an exclusive game therefore worked.

The 1, still available, now totals 153.1 million units sold. Over the next three months, it should dethrone the Nintendo DS as the most sold console of the brand to date. After a surprising price increase, we nevertheless doubt that the Switch 1 bats the record long owned by the PlayStation 2 of Sony.

The more expensive switch

Nintendo thus increased the price of the Switch 1 at the end of last week in the United States, which has been repeated – more than eight years. From 300 dollars, we went to 340 dollars. The OLED model has climbed $ 350 to $ 400.

The first generation reached 1.415 billion games sold. This represents about nine games per console.Image: Nintendo

It is extremely rare for a console to become more expensive after the launch of the following model. Nintendo is content to invoke the “market conditions” to justify its decision. A probable reference to new American customs duties. Nintendo has certainly already transferred a large part of its production from China to Vietnam in 2019, but Donald Trump’s customs duties also hit Vietnam hard, and therefore Nintendo with a rate of 20%. This represents twice as much as the 10% base introduced in April and used by Japanese to calculate its income for the current tax year.

Europe is not currently concerned by this price adaptation. That of the Switch 2 did not move, not even in the United States. Nintendo probably does not dare to (yet) repercuss the cost increase in consumers for this important product. But that could change: “Please note that price adjustments may be necessary in the future,” said the manufacturer.

The unilateral increase in the prices of the old model should bear fruit. The difference with the new Switch 2 is falling asleep and it therefore becomes more interesting for customers to opt for the last console, especially than in the United States, the 2 is only 50 dollars more expensive than the OLED.

Despite customs duties and uncertain Christmas sales, investors display their confidence. Since the start of the year, The brand’s share has increased by 46%, and 100% in the last 12 months.

Shareholders believe in it

One of the reasons for this optimism is undoubtedly to be sought in the almost monopolistic position of the iconic Japanese company. She can publish her games exclusively on her own console. HASVec Mario, Zelda, Pokémon and the others, Nintendo was created in the sector one “niche in several tens of billions” which has so far resisted all storms. While the video game industry recently had to face dozens of studios closings and the abolition of around 40,000 jobs, Nintendo has continued to grow.

Another reason for the confidence of investors: LA growing diversification. In addition to video games, Nintendo is increasingly involved in movies and amusement parks. So, The Legend of Zelda should be released in the movies in 2027. The idea: target a wider audience and familiarize it with brands, This should then result in an increase in sales of consoles and games.

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