At Nintendo’s 84th Annual Shareholders’ Meeting, CEO Shuntaro Furukawa provided critical updates regarding the highly anticipated Switch 2. The CEO addressed concerns about resale and shortages, assuring stakeholders that Nintendo has learned from past mistakes and is taking robust steps to prevent similar issues in the future.
Shipping 10 Million Units in the First Year
Earlier this year, Nintendo revealed an ambitious plan to ship 10 million units of the Switch 2 within its first year. This move aims to ensure a successful launch and wide availability for consumers, addressing the scarcity issues that plagued the original Switch launch.
Nintendo is fine-tuning its strategy in response to the supply challenges faced by Sony and Microsoft with the PS5 and Xbox Series X/S. These shortages, exacerbated by the global chip crisis during the COVID-19 pandemic, have provided valuable lessons. By learning from these challenges, Nintendo is implementing proactive measures to avoid similar issues with the Switch 2.
Addressing Semiconductor Shortages
Nintendo has recently faced production challenges with the Switch due to semiconductor shortages—a global problem that has hindered meeting high consumer demand. CEO Furukawa reassured investors that these challenges have been resolved and will not affect the production of the upcoming hardware. The company’s main strategy involves ramping up production to prevent the Switch 2 from being resold at inflated prices.
Furukawa emphasized the importance of balancing production with customer demand to achieve the goal of preventing resale at higher prices. By ensuring enough units are available, Nintendo aims to reduce the impact of the resale market, providing a fair opportunity for all consumers to purchase the new console at its intended price.
Legal Actions Against Resale and Scalping
In addition to boosting production, Nintendo is also exploring legal actions against resale. Furukawa noted that the company is investigating various legal strategies tailored to each region to effectively combat the resale problem. This approach highlights Nintendo’s commitment to ensuring a fair market for its consumers.
Anticipated Announcement and Pricing
The gaming community eagerly awaits the official announcement of the Switch 2, expected sometime this fiscal year. Reports suggest that the handheld console could be priced at $399, making it a competitive offering in the gaming market. With proactive measures in place, there are high expectations for a smooth and successful launch.
Nintendo has confirmed its commitment to supporting the current generation even after the new model launches. This means ongoing third-party support and games that will work on both systems, ensuring that existing customers continue to enjoy a rich gaming experience without feeling left behind.
Exciting upcoming releases like Metroid Prime 4 are expected to be available on both the current and new consoles, facilitating a seamless transition between generations. This strategy not only keeps the existing player base engaged but also attracts new users to the Nintendo ecosystem.