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 Reportedly Delays Release of Phoenix Mixed-reality Glasses to 2027

FILE PHOTO: The logo of Meta is seen at Porte de Versailles exhibition center in Paris, France, June 11, 2025. REUTERS/Gonzalo Fuentes/File Photo
FILE PHOTO: The logo of Meta is seen at Porte de Versailles exhibition center in Paris, France, June 11, 2025. REUTERS/Gonzalo Fuentes/File Photo
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Meta Reportedly Delays Release of Phoenix Mixed-reality Glasses to 2027

FILE PHOTO: The logo of Meta is seen at Porte de Versailles exhibition center in Paris, France, June 11, 2025. REUTERS/Gonzalo Fuentes/File Photo
FILE PHOTO: The logo of Meta is seen at Porte de Versailles exhibition center in Paris, France, June 11, 2025. REUTERS/Gonzalo Fuentes/File Photo

Meta is delaying the release of its Phoenix mixed-reality glasses until 2027, aiming to get the details right, Business Insider reported on Friday, citing an internal memo.

The delay from an initially planned release in the second half of 2026 is because the company wants a fully polished device, the report said.

Meta did not immediately respond to a Reuters request for comment on the report.

Meta executives Gabriel Aul and Ryan Cairns said moving the release date back is "going to give us a lot more breathing room to get the details right," the report added.

The goggles, previously code-named Puffin, weigh around 100 grams (3.5 ounces) and have lower-resolution displays and weaker computing performance than high-end headsets like Apple’s Vision Pro, the Information reported in July.

Mixed reality merges augmented and virtual reality and allows real-world and digital objects to interact.

Meta is expected to make budget cuts of up to 30% for its metaverse initiative, Bloomberg News reported on Thursday.

The metaverse group sits within Reality Labs, which produces the company's Quest mixed-reality headsets, smart glasses made with EssilorLuxottica's Ray-Ban and upcoming augmented-reality glasses.


Apple, Google Send New Round of Cyber Threat Notifications to Users Around World

The Apple logo is seen in this illustration taken September 24, 2025. (Reuters)
The Apple logo is seen in this illustration taken September 24, 2025. (Reuters)
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Apple, Google Send New Round of Cyber Threat Notifications to Users Around World

The Apple logo is seen in this illustration taken September 24, 2025. (Reuters)
The Apple logo is seen in this illustration taken September 24, 2025. (Reuters)

Apple and Google have sent a new round of cyber threat notifications to users around the world, the companies said this week, announcing their latest effort to insulate customers against surveillance threats.

Apple and the Alphabet-owned Google are two of several tech companies that regularly issue warnings to users when they determine they may have been targeted by state-backed hackers.

Apple said the warnings were issued on Dec. 2 but gave few further details about the alleged hacking activity and did not address questions about the number of users targeted or say who was thought to be conducting the surveillance.

Apple said that "to date we have notified users in over 150 countries in total."

Apple's statement follows Google's Dec. 3 announcement that it was warning all known users targeted using Intellexa spyware, which it said spanned "several hundred accounts across various countries, including Pakistan, Kazakhstan, Angola, Egypt, Uzbekistan, Saudi Arabia, and Tajikistan."

Google said in its announcement that Intellexa, a cyber intelligence company that is sanctioned by the US government, was "evading restrictions and thriving."

Executives tied to Intellexa did not immediately return messages.

Previous waves of warnings have triggered headlines and prompted investigations by government bodies, including the European Union, whose senior officials have previously been targeted using spyware.

Threat notifications impose costs on cyber spies by alerting victims, said John Scott-Railton, a researcher with the Canadian digital watchdog group Citizen Lab.

He said they were "also often the first step in a string of investigations and discoveries that can lead to real accountability around spyware abuses."


AI Bubble to Be Short-lived, Rebound Stronger, NTT DATA Chief Says

FILE PHOTO: Figurines with computers and smartphones are seen in front of the words "Artificial Intelligence AI" in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Figurines with computers and smartphones are seen in front of the words "Artificial Intelligence AI" in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
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AI Bubble to Be Short-lived, Rebound Stronger, NTT DATA Chief Says

FILE PHOTO: Figurines with computers and smartphones are seen in front of the words "Artificial Intelligence AI" in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Figurines with computers and smartphones are seen in front of the words "Artificial Intelligence AI" in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

A potential artificial intelligence bubble will deflate faster than past tech cycles but give way to an even stronger rebound as corporate adoption catches up with infrastructure spending, the head of Japanese IT company NTT DATA Inc. said.

Despite worries around supply chains, the direction of travel is clear, CEO Abhijit Dubey said in an interview with the Reuters Global Markets Forum.

"There is absolutely no doubt that in the medium- to long-term, AI is a massive secular trend," he said.

"Over the next 12 months, I think we're going to have a bit of a normalization ... It'll be a short-lived bubble, and (AI) will come out of it stronger."

With demand for compute still running ahead of supply, "supply chains are almost spoken for" over the next two to three years, he said. Pricing power is already tilting toward chipmakers and hyperscalers, mirroring their stretched valuations in public markets, he added.

AI has triggered the biggest technological shake-up since the advent of the internet, fueling trillions of dollars of investment and eye-watering equity gains. But it has caused shortages of memory chips, drawn regulatory scrutiny, and created growing unease over the future of work.

Dubey, who is also the firm's chief AI officer, said his company has begun rethinking recruitment strategies as AI reshapes labor markets.

"There will clearly be an impact ... Over a five- to 25-year horizon, there will likely be dislocation," he said. However, he added that NTT DATA continues to hire across locations.

Speakers at the Reuters NEXT conference in New York discussed how AI may upend work and job growth.

AI startup Writer Inc.'s CEO May Habib said customers are focused on slowing headcount growth.

"You close a customer, you get on the phone with the CEO to kick off the project, and it's like, 'Great, how soon can I whack 30% of my team?'," she said.

Still, a PwC survey of the global workforce released in November suggests the reality of generative AI usage has yet to match boardroom expectations.

Daily use of GenAI remains "significantly lower" than widely touted by executives, PwC said, even as workers with AI skills commanded an average wage premium of 56% — more than double last year's figure.

PwC also flagged a widening skills gap, with about half of non-managers reporting access to training resources, compared with roughly three-quarters of senior executives.