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Soaring demand for Nintendo Switch 2 boosts massive video game market

BBG News

Benedict Corpuz is someone who has consistently been there from the start, regularly supplying his gaming passion with necessary fuel.

Since his teenage days, a 45-year-old flight attendant from Kent, Washington, has made it a point to acquire the latest Nintendo systems on their release date, whether it was the Nintendo 64 or its less commonly used successor, the GameCube. The upcoming Nintendo Switch 2 was no exception. He queued up at 6:30 p.m. on Wednesday outside the Best Buy in Federal Way, Washington. Admitted into the store at 9:01 p.m., he managed to secure the highly sought-after gadget – which he had preordered – by 9:13 p.m. and was back in his car.

“It’s a good feeling to be one of the first,” he said. “I just really enjoy playing the games.”

The interest for the approximately $450 portable gadget, debuted on Thursday, was substantial as enthusiastic buyers such as Corpuz spent hours in queues to secure the latest version of the Switch. This updated model has been around for eight years and enjoyed strong sales upon its initial release. Nintendo America expressed their excitement on social media with the caption “It’s game time!” accompanied by pictures of thrilled customers displaying their new Switch 2 devices.

By mid-afternoon in Los Angeles, it was announced that some retailers had run out of the devices, demonstrating the console’s popularity. Shortages were also reported in various overseas markets. The last time a console launch drew this level of interest was back in 2020, when Sony’s PlayStation 5 and Microsoft’s latest Xbox hit the market within the same month.

As a dedicated moviegoer, I’ve got to tell you that the new Switch is going to be hard to get my hands on for quite some time. Michael Pachter, a managing director at Wedbush Securities, predicts this. But here’s a bit of good news: by January, he thinks they might just manage to strike a balance between supply and demand.

A widely recognized gadget, featuring innovative titles like “Mario Kart World,” is projected to bolster the international video game and gaming service sector, anticipated to reach approximately $201 billion in 2023 by industry forecasts from Ampere Analysis based in London. The video game industry has a significant role in entertainment, generating revenues that often surpass annual global box office receipts for films, as an illustration.

Console sales alone are projected to hit $16.5 billion this year, up from $13.4 billion in 2024.

Entertainment & Arts

According to Ronald Santa-Cruz, who works as a research manager at Ampere, it’s predicted that approximately 13.6 million units of Switch 2 will be sold in the year 2025. He believes this high demand is due to several factors: a substantial number of current Switch users planning to upgrade, enhanced performance and capabilities for running more detailed video games, and the strong devotion of fans towards Nintendo’s iconic franchises such as “Super Mario Bros.” and “The Legend of Zelda.

During the COVID-19 pandemic, sales of the Nintendo Switch, initially released in 2017, skyrocketed as people sought home-based entertainment options. As of March 31, Nintendo reported that they’ve sold a total of 152 million units of the Nintendo Switch console.

Prior to the release of Switch, Nintendo’s future prospects appeared unclear due to tough competition in the console market with companies like Sony and Microsoft. As noted by Rob Enderle, principal analyst at Enderle Group, the once formidable competitor, based in Kyoto, Japan, had faced difficulties keeping up. In fact, Sega Corp., a previous rival of Nintendo, ceased production and sales of consoles in 2001 following a string of setbacks.

However, the Switch marked a significant shift. With its unique hybrid structure that enabled portable gaming, it expanded its user base beyond the usual console gamers.

Prior to the release of the Switch, there was a sense of uncertainty about whether Nintendo would manage to stay afloat in the gaming industry, according to Enderle. He further explained that the Switch stood out from other products due to its unique features and portability, which ultimately helped restore Nintendo’s market presence. In his opinion, without the success of the Switch, Nintendo might have faced closure.

According to Nintendo’s recent announcement by President Shuntaro Furukawa, it is expected that sales of the Switch 2 hardware will reach approximately 15 million units during their fiscal year. The aim is to achieve sales comparable to those of the initial Switch within a 10-month period from its March 2017 launch. Despite ongoing tariff issues in the U.S. and potential economic recession, these factors have not affected Nintendo’s forecast for Switch 2 sales.

Furukawa stated that our primary aim is to have a strong launch similar to the Nintendo Switch, and we’re focusing on increasing our production capabilities to meet demand effectively.

Entertainment & Arts

Since the launch of their first Nintendo Entertainment System, it’s been a long time since the Japanese corporation unveiled a home gaming console with as much promise to revolutionize our gaming experience as the Nintendo Switch, which hits shelves on Friday.

Nintendo expressed gratitude for the enthusiastic feedback they’ve received from their fans, however, they opted not to disclose the sales figures on the first day of release.

Nintendo announced that they provided their retail partners with a substantial number of products at the launch, suggesting that those who missed out on purchasing the Switch 2 during pre-orders should check their preferred stores for availability.

Nintendo stated that they will put in great effort to consistently supply their retail partners with new products, doing their utmost to keep up with the demand.

On Thursday, Doug Bowser, President of Nintendo of America, shared with CBS News his delight over the high demand they’ve experienced so far. He also mentioned that the preorders were snapped up incredibly fast.

Although the Nintendo Switch has had a robust initial phase, its long-term pricing stability is questionable due to tariffs imposed by the Trump administration. Regardless of this unpredictability, experts anticipate that the appeal for this gadget will persist.

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2025-06-06 01:01

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