Nintendo Aims to Match Switch Success with New Console

Nintendo hopes to match the success of the Switch when its levelled-up new console hits shelves Thursday, with strong early sales expected despite the gadget's high price. Dimitar DILKOFF / AFP/File
Nintendo hopes to match the success of the Switch when its levelled-up new console hits shelves Thursday, with strong early sales expected despite the gadget's high price. Dimitar DILKOFF / AFP/File
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Nintendo Aims to Match Switch Success with New Console

Nintendo hopes to match the success of the Switch when its levelled-up new console hits shelves Thursday, with strong early sales expected despite the gadget's high price. Dimitar DILKOFF / AFP/File
Nintendo hopes to match the success of the Switch when its levelled-up new console hits shelves Thursday, with strong early sales expected despite the gadget's high price. Dimitar DILKOFF / AFP/File

Nintendo hopes to match the runaway success of the Switch when its levelled-up new console hits shelves Thursday, with strong early sales expected despite the gadget's high price.
Featuring a bigger screen and more processing power, the Switch 2 is an upgrade to its predecessor, which has sold 152 million units since launching in 2017 -- making it the third best-selling video game console of all time.
But despite buzz among fans and robust demand for pre-orders, headwinds for Nintendo include uncertainty over US trade tariffs and whether enough people are willing to shell out, said AFP.
The Switch 2 "is priced relatively high" compared to the original device, company president Shuntaro Furukawa said at a financial results briefing in May.
"So even if there is momentum around the launch, we know it will not be easy to keep that momentum going over the long term," he warned.
Sales of the Switch, which can connect to a TV or be played on the go, were boosted by the popularity of games like "Animal Crossing" as a pandemic lockdown pastime.
The Japanese company forecasts it will shift 15 million Switch 2 consoles in the current financial year, roughly equal to the original in the same period after its release.
The new device costs $449.99 in the United States, over a third more than the Switch. A Japan-only version is cheaper, at 49,980 yen ($350).New Switch 2 games such as "Donkey Kong Bonanza" and "Mario Kart World" -- which allows players to go exploring off-grid -- are also more expensive than existing Switch titles.
Most original Switch games can be played on the Switch 2, and some Switch blockbusters such as "Zelda: Breath of the Wild" will have enhanced editions released for the new incarnation.
'Super excited'
"People were a bit shocked by the price of 'Mario Kart World', the first $80 game that we've ever seen," said Krysta Yang of the Nintendo-focused Kit & Krysta Podcast.
While the company is "going to have to do some work" to convince more casual gamers that it's worth upgrading, Nintendo fans are "super excited", she told AFP.

The Switch 2 will have eight times the memory of the first Switch, and its controllers, which attach with magnets, can also be used like a desktop computer mouse.
Although the new console is not radically different, "a lot of people (are) saying, 'this is what I wanted, I wanted a more powerful Switch -- don't mess with a good thing'," said Yang, a former Nintendo employee.
New functions allowing users to chat as they play online and temporarily share games with friends could also be a big draw, said David Gibson of MST Financial.
"It's a way to appeal to an audience which has got used much more to the idea of streaming games and watching games, as well as playing games," he told AFP, predicting that the Switch 2 will break records in terms of early sales.
And success is crucial for Nintendo.
While the "Super Mario" maker is diversifying into theme parks and hit movies, around 90 percent of its revenue still comes from the Switch business, analysts say.
Tariff trouble?
Nintendo delayed pre-orders for the Switch 2 in the United States by two weeks as it assessed the impact from President Donald Trump's global assault on free trade.
But its pre-orders have since sold out in the US market and elsewhere, with the company boasting of particularly high demand in Japan.
Furukawa said in May that Nintendo's financial projections are based on the assumption of US tariffs of 10 percent on products produced in Japan, Vietnam, and Cambodia, and 145 percent on China.
"Hardware for North America is mainly produced in Vietnam," he added.
Trump's hefty so-called "reciprocal" tariff of 46 percent on goods from Vietnam is on pause, while those on China have been slashed.
Tariff uncertainty could in fact push consumers to buy a Switch 2 sooner, because they are worried that the price could go up, Yang said.
Charlotte Massicault, director of multimedia and gaming at the French retail giant Fnac Darty, told AFP that pre-sale demand has been "well above what we imagined".
"For us, this will be a record in terms of first-day sales for a games console," she said.
The Switch 2 is "less of a family-focused product, and more of a 'gamer' product" compared to the Switch, she said.
"That's what Nintendo wanted, and it works."



Meta Chief Doubles Down on AI Spending

FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026.  REUTERS/Mike Blake
FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026. REUTERS/Mike Blake
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Meta Chief Doubles Down on AI Spending

FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026.  REUTERS/Mike Blake
FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026. REUTERS/Mike Blake

Meta chief Mark Zuckerberg on Wednesday defended massive spending on artificial intelligence that dragged down shares despite strong earnings boosted by the technology.

The social networking colossus raised its capital expenditures for this year to a range of $125 billion to $145 billion without laying out exactly how that investment would translate into profit.

"The way to think about the investment is that we're making a bet (on) the individual things that people care about, and that people are going to be more important in the future," Meta chief Mark Zuckerberg said during an earnings call, as analysts pressed him about the company's heavy spending on AI.

He gave the example of a hot trend in "agentic" AI in which digital assistants handle computer tasks independently at the behest of people.

"There are a lot of agents out there that people are building for different things, and there aren't that many that I would want to give to my mother," Zuckerberg said.

"I think getting to that quality bar is something that I care about more than hitting a specific week for launching (a new product) or something like that."

Zuckerberg spotlighted a new Muse Spark AI model built by Meta's nascent "Superintelligence Lab", saying its technology will be put to work in Meta's offerings such as smartglasses and its advertising system.

"We are trying novel things," AFP quoted Zuckerberg as saying.

The AI investment from the company that owns Instagram and Facebook is not directly tied to a revenue stream as with Amazon, Microsoft and Google, which sell their AI-powered cloud services to clients worldwide.

Meta sent tremors on Wall Street by announcing in its earnings release that expenses at the tech giant notched up to $33.4 billion as it chases "superintelligence" through major infrastructure buys, and went on a hiring spree for top AI talent.

Shares dropped more than 6 percent even though the company topped forecasts with a profit of $26.8 billion on revenue of $56.3 billion in the quarter.

- Headwinds and scrutiny -

Adding to investor unease about Meta, chief financial officer Susan Li told analysts Meta continues to monitor legal and regulatory "headwinds" in the US and Europe, including social media addiction lawsuits.

"We continue to see scrutiny on youth related issues and have additional trials scheduled for this year in the US, which may ultimately result in a material loss," Li warned.

A Los Angeles jury in March found Meta and YouTube liable for harming a young woman because of an addictive design of their social media platforms, ordering the companies to pay millions of dollars in damages.

The verdict hands plaintiffs in more than a thousand similar pending cases significant leverage -- and signals to the tech industry that juries are prepared to hold social media companies accountable for the mental health toll of their design choices.


Australia Aims to Tax Tech Giants Unless They Pay News Outlets

A photograph taken during the World Economic Forum (WEF) annual meeting in Davos on January 19, 2025, shows the logo of Meta, the US company that owns and operates Facebook, Instagram, Threads, and WhatsApp. (AFP)
A photograph taken during the World Economic Forum (WEF) annual meeting in Davos on January 19, 2025, shows the logo of Meta, the US company that owns and operates Facebook, Instagram, Threads, and WhatsApp. (AFP)
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Australia Aims to Tax Tech Giants Unless They Pay News Outlets

A photograph taken during the World Economic Forum (WEF) annual meeting in Davos on January 19, 2025, shows the logo of Meta, the US company that owns and operates Facebook, Instagram, Threads, and WhatsApp. (AFP)
A photograph taken during the World Economic Forum (WEF) annual meeting in Davos on January 19, 2025, shows the logo of Meta, the US company that owns and operates Facebook, Instagram, Threads, and WhatsApp. (AFP)

Australia unveiled draft laws on Tuesday that would tax tech giants Meta, Google and TikTok unless they voluntarily strike deals to pay local outlets for news.

Traditional media companies around the world are in a battle for survival as readers increasingly consume their news on social media.

Australia wants big tech companies to compensate local publishers for sharing articles that drive traffic on their platforms.

Prime Minister Anthony Albanese said tech giants Meta, Google and TikTok would be given a chance to strike content deals with local news publishers.

If they refused, they faced a compulsory levy that amounted to 2.25 percent of their Australian revenue, he said.

"Large digital platforms cannot avoid their obligations under the news media bargaining code," Albanese told reporters.

"At this point the three organizations are Meta, Google and TikTok."

The changes aim to close a loophole under a previous media law which allowed organizations to avoid a levy if they removed news from their platforms.

The three firms were singled out based on a combination of their Australian revenues and large numbers of domestic users.

The draft laws have been designed to stop the tech giants from simply stripping news from their platforms -- something Meta and Google have done in the past.

"What we are encouraging is for them to sit down with news organizations and get these deals done," Albanese said.

When Canberra mooted similar laws in 2024, Facebook parent Meta announced that Australian users would no longer be able to access the "news" tab.

Meta had previously announced it would not renew content deals with news publishers in the United States, Britain, France and Germany.

- 'Only fair' -

Google has similarly threatened to restrict its search engine in Australia if forced to compensate news outlets.

Journalism needed to have a "monetary value attached to it", Albanese said.

"It shouldn't be able to be taken by a large multinational corporation and used to generate profits with no compensation."

Supporters of such laws argue that social media companies attract users with news stories and hoover up online advertising dollars that would otherwise go to struggling newsrooms.

Meta said the proposed laws were "nothing more than a digital services tax".

"News organizations voluntarily post content on our platforms because they receive value from doing so," a spokeswoman said in a statement to AFP.

"The idea that we take their news content is simply wrong."

Australia's University of Canberra has found that more than half the country uses social media as a source of news.

"People are increasingly getting their news directly from Facebook, from TikTok and Google," Communications Minister Anika Wells said.

"We believe it's only fair that large digital platforms contribute to the hard work that enriches their feeds and that drives their revenue."

The draft laws were presented for public consultation on Tuesday, which will close in May.

They would then be introduced into parliament later this year.


Google Breaks Ground on Indian AI Megahub

Google's logo during the CERAWeek energy conference 2026 in Houston, Texas, US, March 24, 2026. (Reuters)
Google's logo during the CERAWeek energy conference 2026 in Houston, Texas, US, March 24, 2026. (Reuters)
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Google Breaks Ground on Indian AI Megahub

Google's logo during the CERAWeek energy conference 2026 in Houston, Texas, US, March 24, 2026. (Reuters)
Google's logo during the CERAWeek energy conference 2026 in Houston, Texas, US, March 24, 2026. (Reuters)

Tech giant Google on Tuesday marked the ceremonial start of work on its largest artificial intelligence hub outside of the United States with a groundbreaking ceremony in India.

The firm promised in October 2025 to spend $15 billion over five years to construct the vast center in Visakhapatnam, a southeastern port in Andhra Pradesh state of around two million people, popularly known as "Vizag".

"Today marks the first concrete milestone in Google's largest commitment to India's digital future," Bikash Koley, Google's Vice President for Global Infrastructure, told the ceremony.

"This project represents a $15 billion blueprint to deliver a full stack AI ecosystem," he added.

"At its core is our gigawatt scale data center campus, purpose built for the immense computational demand of the AI era, powering services like Gemini and Google Search."

Nara Lokesh, information technology minister for Andhra Pradesh state, said he was "excited as we embark on this journey to build India's most coveted AI and deep-tech hub".

Vizag is being pitched as a landing point for submarine internet cables linking India to Singapore.

"By establishing Vizag as an international subsea gateway, we will add vital diversity from the existing landings, in Mumbai and Chennai, increasing the resilience of India's digital backbone and improving economic security," Koley added.

"New strategic fiber optic routes will further connect India with the rest of the world."

Globally, data centers are an area of phenomenal growth, fueled by the need to store massive amounts of digital data, and to train and run energy-intensive AI tools.

"This is a pivotal moment for India, Vizag, and for Google," Koley added.