New York CNN —
Nintendo on Wednesday announced the Switch 2, the sequel to its wildly successful hybrid game console from over eight years ago. Now, the video game company must prove that it can follow one blockbuster hit with another, a goal it’s struggled to achieve in the past.
Nintendo revealed concrete details about the Switch 2 for the first time on Wednesday, including specifics about its hardware. The company had in January only revealed the Switch 2’s design and compatibility with previous-generation games. The Switch 2 will launch on June 5 for $449.99, which is significantly higher than the first-generation model’s $300 price.
The first Switch popularized the idea of a game console that can be played on your living room television or on an airplane, prompting a wave of PC gaming brands to follow suit. The Switch 2 is the company’s biggest launch since the first generation arrived in 2017 — and will likely dictate the next decade for the one of the world’s biggest and most recognizable video game companies.
Nintendo will also have to navigate challenges that didn’t exist in 2017: tariffs on Chinese goods that could impact production and shipping costs, increased competition from mobile games and pressure to live up to the pandemic-era highs the gaming industry experienced in 2020. And above all else, it’s making a big bet that Nintendo fans are willing to spend $450 on what is essentially a revamped version of its current console rather than an entirely new take on gaming.
“The Switch being so successful is a double-edged sword,” said Mat Piscatella, executive director for video game coverage at market research firm Circana. “On the one hand, a huge, great positive base to build on. On the other hand, a huge target to try to reach in terms of the same level of success.”
The Switch 2 iterates on its predecessor with several new features, including a Game Chat function that lets gamers communicate with other players in real time. It also allows users to share certain games with other Switch owners while playing in person even if the other player doesn’t own the title.
The Joy-Con controllers, which attach to the Switch when it’s being used as a handheld console or can be used separately, will now support computer mouse-like functionality. The console will also work with a separate camera so that players can see each other on screen when using Game Chat and other features.
Nintendo is relying on these changes to differentiate the Switch 2’s gameplay from that of its predecessor. During its Nintendo Direct live stream, the company showed how players will be able to slide the Joy-Con controllers across a surface like a computer mouse to move the character on screen in different ways.
Nintendo has also given the console hardware a much-needed upgrade. The Switch 2 has a larger 7.9-inch display compared to the original Switch’s 6.2-inch screen, and the Joy-Con controllers now snap to the console magnetically, which should make them easier to attach or remove from the console. The console has eight times as much storage as its predecessor and the dock supports 4K resolution, two changes that should give players more room to store games and improve how they look when connected to a compatible TV.
Nintendo also announced new games from some its most well-known franchises, including Donkey Kong and Mario Kart. Nintendo’s titles are a key reason gamers continue to buy Nintendo consoles.
But the company also focused a big portion of its presentation on non-Nintendo games, which is critical because Nintendo is traditionally best known for its own exclusive titles, and doing so could help the company draw in new audiences.
Such games include Elden Ring, Cyberpunk 2077, Final Fantasy VII Remake Intergrade, Hogwarts Legacy and Tony Hawk Pro Skater 3 and 4.
The Switch 2 is the successor to the world’s third-best gaming console of all time. Nintendo has sold roughly 150 million Switch units, putting it just behind Nintendo’s handheld DS console from 2004, which sold 154 million units, according to Nintendo’s website. Sony says it has sold 160 million units of its PlayStation 2 console since it launched in 2000.
Nintendo has had a hard time replicating success in the past. For example, Nintendo only sold about 13 million Wii U devices after its November 2012 release, just a sliver of the roughly 101 million Wii consoles that were sold in the generation prior. And roughly half as many units of the 3DS, a version of the company’s DS portable console with a 3D screen, were sold compared to the original, which remains Nintendo’s best-selling console.
But Nintendo is straying from its usual playbook.
It sometimes brands new consoles as different products in the same family, as was the case with Wii U and the Wii. Other times, it has launched new consoles with fresh names that introduce new ways to play games, such as the Wii, which succeeded the GameCube and popularized motion controls, and the Switch, which functions as both a portable and at-home console.
This time, it’s positioning the Switch 2 as a direct sequel, an updated version of the same device.
“This would be the first time we’re really seeing, though, something like the Switch to Switch 2,” said Piscatella. “It’s such a straight transition, especially for Nintendo that’s always tried to mix in some new different things.”
But even with a new playbook, the company may have trouble recreating its success from 2020, when the video game industry saw a surge in engagement during pandemic lockdowns. Nintendo’s profit jumped more than 400% for the quarter that ended in June 2020.
Console usage has largely been flat since then due to a post-pandemic downswing, among other factors, according to Piscatella and Anders Christofferson, global head of Bain & Company’s video gaming sector.
Sony and Microsoft’s most recent consoles have already been out for several years, so gamers may not be as engaged with them as when they first purchased them, and there’s more competition from mobile games. Mobile gamers account for most of the gaming market’s growth, according to a report from Bain & Company.
“It’s no secret that video games have gone on a pretty challenging journey over the past couple of years,” said Christofferson.
Then there are President Donald Trump’s tariffs on Chinese goods, that could raise the prices of electronics, though more than half of Nintendo devices imported to the US now come from Vietnam and Cambodia, according to the Financial Times. But it’s not just about production: High inflation and price increases from tariffs would make it more difficult for consumers to spend on nonessential items like game consoles. That’s especially true considering the Switch 2 is notably more expensive than the $300 original, putting Nintendo’s new console in closer competition with Valve’s Steam Deck, which starts at $399 and is designed to play PC games on the go.
“In terms of just general market behavior, we are seeing consumers shift their wallet to everyday spending categories like grocery, housing (and) insurance,” said Piscatella. “…It’s an incredibly difficult environment to try to sell things in.”
But Nintendo’s robust library of beloved characters and games could give it an edge against these difficulties. The company’s approach to gameplay is also more cinematic and focused on solo adventures compared to most mobile games, says Michael Pachter, a managing director for Wedbush Securities covering entertainment software. This could help differentiate it from phone-based competitors.
Pachter likens the situation to the dining industry; while McDonald’s may draw in more customers than a premium steakhouse, the latter provides a superior and unique experience. In Pachter’s comparison, mobile games are analogous to McDonald’s, while Nintendo is the steakhouse.
“McDonald’s restaurants probably each outgross the best steakhouse in town, and there (are) thousands of them,” he said. “But it’s not as good an experience.”
