Berliner Boersenzeitung - Nintendo Switch 2 sparks excitement despite high price

The Japanese video game giant revealed details about the Switch 2 on Wednesday, announcing an update to the hugely successful 2017 original that has sold over 150 million units.

But shares in the Kyoto-based company tanked nearly six percent following the announcement, partly because the recommended retail price -- $449.99 in the United States, 395.99 pounds in Britain and 469.99 euros in France -- is at least a third more than its predecessor.

Shares closed down 3.3 percent in the wake of US President Donald Trump's sweeping levies.

These include 46 percent on Vietnam and 49 percent on Cambodia -- countries where Nintendo has reportedly shifted an increasing share of its production in recent years.

The Switch 2 games, including "Donkey Kong Bonanza", "Kirby Air Riders" and "Mario Kart World", will cost 80-90 euros ($86-$97).

"I will buy it, but maybe not when it's released," Felix Sorge, a 33-year-old data analyst told AFP in Tokyo. "It's quite expensive in comparison to the old one."

Industry research firm Niko Partners poured cold water on the idea of waiting for a discount, however.

"We do not expect a price drop for the Switch 2 within its first five years given continued uncertainty around reciprocal tariffs, global trade and higher component costs," it said.

The original Switch was an all-ages hit thanks to its hybrid concept, which allows players to use it on the go and connect to a TV. The new version retains many of its features, including detachable "Joy-Con" controllers.

What's new is a "C" button that activates "GameChat" -- allowing users to speak with one another while playing.

"Even when you're apart, you can play games and hang out as if you were together in the same room," Nintendo said.

- 'GameShare' -

The Switch 2, which will be released on June 5, will have eight times the memory of the first Switch at 256 GB, and a 7.9-inch (20-centimetre) screen up from 6.2 inches for the original.

Its controllers, which attach with magnets, can also be used like a desktop computer mouse, a new functionality the company clearly hopes game developers will use.

A "GameShare" function will also enable users to share games with friends and temporarily play together.

Rio Narita, a 21-year-old Japanese university student, called the wider range of gameplay possibilities "a big deal" and said Sony's PlayStation 5 console was also expensive.

"Given all these functions and the larger screen, it's sort of unavoidable," he said.

But student Sayaka Motoya, 18, said the price was "tough for younger people or those who don't have much money".

Nintendo offered a glimpse of the hotly anticipated new console in mid-January, ahead of the live presentation Wednesday.

"The Switch 2 is more of an iteration than a reinvention of the wheel," Niko Partners said.

Despite recent diversification efforts into movies and theme parks, Nintendo's core business still relies on video games.

The company could sell around 19 million units in 2025 and 21 million the following year, Toyo Securities estimated.

Some media reported that export data shows Nintendo has been amassing an inventory of the new Switch in the United States to get ahead of the tariffs.

According to Niko Partners, the higher cost of the console in the United States compared to Japan is likely intended "to avoid potential impacts from US tariffs".

The video game industry has been struggling with a global slowdown, with sales down by 35 percent in 2024 year-on-year in the United States, according to US market researchers Circana.

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(Y.Yildiz--BBZ)