Investors Keen on Price, Release Date as Nintendo Prepares to Unveil Switch 2 Gaming Console

Nintendo is expected to unveil details of the Switch 2 device on April 3, Reuters reported. These details will be revealed during the company’s Direct keynote event. A spokesperson from the South Korea gaming giant said the event will give gamers a closer look at the company’s latest hybrid console Nintendo Switch 2.

Gamers and investors will be able to follow the event on Nintendo live streams across social media platforms, including the game maker’s YouTube page.

Smooth Transition

Switch 2 will replace the home-portable Switch gaming device. As the company unveils details of the new gaming console, investors will be keen to know more about the possible release date and the retail price. The company is also expected to reveal the Nintendo Switch 2 pre-order date.

The Switch gaming device has sold over 150 million units. The Kyoto-based company ran several hardware refreshes. It also ran hit games from big franchises like ‘The Legend of Zelda’ and ‘Super Mario’ to extend its life cycle. Analysts expect that the transition to Nintendo Switch 2 will be flawless, with its retail price ranging from $399 and $499.

“Once the Switch 2 goes on sale, we believe the strength of demand will become evident,” Jefferies analyst Atul Goyal said.

Nintendo is expected to launch the new gaming device in between May and June. There are reports that the Switch 2 pre-orders could be available in most retail outlets on April 9. The company will be offering upgraded hardware while maintaining the function and form of its predecessor, Switch.

Analyst Predictions

Nintendo’s fortunes changed after demand for the Switch gaming device soared following its March 2017 launch. The market entry price for this device was $299.99. The South Korean gaming company introduced the Switch after sales of its Wii U device failed to pick up.

During the Nintendo Switch 2 event, investors expect the company to present a games lineup. Such a lineup will be critical in pushing consumers to buy the new device. Analysts have predicted high demand for the new gaming device.

“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,” Minami Munakata, an Analyst at Goldman Sachs wrote in a note.
The new Switch 2 console can be connected to a screen, played in hand, or serve as a controller for a conventional home gaming experience. The company highlighted Nintendo Switch 2 specs in a teaser released earlier this year. They included a nearly black handheld console, two USB-C ports, a built-in kickstand, a Joy-Con mouse control feature, and a docking system. The teaser also gave gaming fans a glimpse of the new Mario Kart game.

The Tariff Effect

Nintendo will be unveiling the Switch 2 at a time when trade tensions remain high across the globe. The tensions have been triggered by President Donald Trump’s decision to impose tariffs on US imports. In February this year, PlayStation manufacturer Sony said it had been stockpiling its US inventory to reduce tariffs.

Despite this, some analysts have claimed that changes in the gaming industry may be helping with the upgrade process. Such changes include backward console compatibility and increased subscriptions.

“The situation appears similar to the transition from Sony’s PS4 to PS5, where earnings continued to expand largely without any downcycle,” Munakata added.

Nintendo’s original Switch was powered by Nvidia’s Tegra X1 mobile chip. Reports show that Switch 2 will be powered by Nvidia’s new mobile chip. The markets are already reacting to Switch 2 news. Nintendo stocks reached a new high in February this year and have gained over 10% to date.

“We think it is unlikely that the new hardware will be big enough to justify its current share price,” Asymmetric Advisors Market Strategist Amir Anvarzadeh said in a note.