Nintendo Switch 2 Pre-orders Exceed Supply

Nintendo's shares experienced a significant boost following the announcement of overwhelming demand for pre-orders of its highly anticipated Switch 2 console in Japan. Company president Shuntaro Furukawa revealed that 2.2 million pre-order applications had been received, a figure that 'greatly exceeds our initial expectations' and surpasses the available supply for the June 5 release date.

The Switch 2, successor to the third best-selling console in history, maintains the hybrid functionality of its predecessor, allowing for both portable and TV-connected gameplay. However, the pricing strategy has raised eyebrows, with the U.S. version retailing at $449.99, more than a third higher than the original Switch.

Despite Nintendo's diversification into theme parks and movies, analysts estimate that approximately 90% of the company's revenue still stems from the Switch business. This underscores the critical importance of the Switch 2's success for Nintendo's financial future.

The launch has not been without challenges, as Nintendo delayed pre-orders in the United States to assess the impact of potential trade tariffs. Industry experts from Niko Partners suggest that due to global trade uncertainties and increased component costs, a price reduction for the console is unlikely within the next five years.