The first hurdle for Nintendo ahead of the launch of the new Switch console will be to ensuring that it has enough stock on hand.
A Nintendo Switch game console is seen at the Paris Games Week on October 29, 2019 in Paris, France. REUTERS/File Photo/Benoit Tessier (REUTERS)
Nintendo has set an Oct. 8 release date for its new Switch gaming system, a long-awaited $350 device that will succeed its famous console and likely spark a wave of new software and holiday-season sales.
The Kyoto-based gaming company defied tradition when it unveiled the Switch, a hybrid system that can connect to a TV at home while also functioning as a standalone mobile device. The machine’s sales have been continuously strong. Throughout 2020, demand was boosted by the Covid-19 epidemic and the smash title Animal Crossing: New Horizons.
In late 2019, Nintendo released the Switch Lite, a mobile-only version of the Switch that costs $199. As of March 31st, the Switch family had sold 85 million units globally.
The Switch’s sales velocity, according to Nintendo President Shuntaro Furukawa, is unique in the company’s 131-year history. Because the platform is only in the middle of its intended lifecycle, he expressed optimism that the pace could be maintained, if not accelerated.
Nintendo’s stock is nearing an all-time high as the business continues to experience higher demand for its products than it can meet immediately. The lineup of new titles that will follow the debut of the new device is also generating a lot of excitement.
Nintendo’s first task ahead of the next console’s release will be to guarantee that it has enough inventory. Global semiconductor shortages have hampered production plans in a variety of industries, affecting everything from automobiles to televisions and consoles to consumer gadgets such as headphones. According to data from market trackers such as Japan’s Famitsu, the PlayStation 5 has been unusually scarce since its November introduction, causing game sales for the new platform to suffer as well.
“One thing we learnt from the PlayStation 5 launch is that having enough inventory is really the only way any company can keep scalpers at bay and keep gamers pleased and eager to spend a lot of money on the platform,” Ace Research Institute analyst Hideki Yasuda said.