Nintendo's Switch 2: Record Demand Signals Gaming Revolution in Japan

Nintendo's new Switch 2 gaming device has sparked massive demand, with 2.2 million lottery applications in Japan alone. Unable to meet initial demand, Nintendo is ramping up production amid U.S.-China trade tensions. Priced at $449.99 in the U.S., it's set to continue Nintendo's successful hardware legacy.

Enthusiastic gamers in Japan have inundated Nintendo with 2.2 million lottery applications for the company's new Switch 2 device, as announced on Wednesday. The demand significantly exceeds Nintendo's expectations and their current capacity for the June 5 release date, highlighting a burgeoning appetite for the upgraded console.

Despite ramping up production, the initial supply will fall short, noted Jefferies analyst Atul Goyal, leading to a 4% rise in Nintendo's shares on Thursday morning in Tokyo. The Switch 2's rollout poses a logistical challenge amid a complex supply chain, affected by the ongoing U.S.-China trade tensions.

Switch 2 follows its predecessor's remarkable success, which sold 2.7 million units globally in its first month. Goyal suggests the new device could herald an unprecedented hardware cycle for Nintendo. Retailing for 49,980 yen in Japan, the device offers improved features like a bigger screen and better graphics, underscoring Nintendo's market strength.

(With inputs from agencies.)