On Wednesday, Nintendo will be announcing the new features and pricing of its Switch 2. The investors are looking for the launch date of the home-portable switch gaming device. It is expected to be announced at a Nintendo Direct event. The Switch 1 was a major hit in the gaming industry and the company sold 150 million units. Along with hardware refreshers and hit games from franchises like The Legend of Zelda and Super Mario, the company is extending its lifecycle. The new version is expected to launch an upgraded hardware while retaining the form and function of Switch 1.
According to an analyst from Jefferies, Atul Goyal the price of Switch 2 will remain between $399 and $499 and the expected date of switch gaming device will be between May and June. In a client note, the analyst wrote
“Once the Switch 2 goes on sale, we believe the strength of demand will become evident,”
Another analyst from Goldman Sachs wrote about the units of the Switch
“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”
Currently, the investors are looking to the launch of upcoming games. They are going to be the key to push consumers to purchase a new device. They will also decide the strength of hardware supply after the Switch was affected by the disruption.
New Tariffs under Trump
The timing of the switch gaming is critical as Donald Trump is looking forward to imposing new tariffs. These tariffs may impact the sale of Switch 2 which is estimated to be 10 million units in the first year of launch. Analyst Nunakata writes about these tariffs
“The situation appears similar to the transition from Sony’s PS4 to PS5, where earnings continued to expand largely without any downcycle,.”
