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."



Samsung, SK Urge Employees to Cut Car Use Amid Rising Energy Risks

FILE - The logo of the Samsung is seen at the Samsung Electronics' Seocho building in Seoul, South Korea, Friday, July 5, 2024.  (AP Photo/Lee Jin-man, File)
FILE - The logo of the Samsung is seen at the Samsung Electronics' Seocho building in Seoul, South Korea, Friday, July 5, 2024. (AP Photo/Lee Jin-man, File)
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Samsung, SK Urge Employees to Cut Car Use Amid Rising Energy Risks

FILE - The logo of the Samsung is seen at the Samsung Electronics' Seocho building in Seoul, South Korea, Friday, July 5, 2024.  (AP Photo/Lee Jin-man, File)
FILE - The logo of the Samsung is seen at the Samsung Electronics' Seocho building in Seoul, South Korea, Friday, July 5, 2024. (AP Photo/Lee Jin-man, File)

South Korean tech giants Samsung Electronics and SK Group said they were asking employees to curb private car use and follow fuel-saving measures after South Korea rolled ⁠out emergency energy-conservation steps ⁠amid instability in Middle Eastern energy supplies.

Internal notices showed the companies encouraging car-use restrictions ⁠such as a five and 10-day vehicle rotation system, reduced parking availability and other energy-saving practices at offices from Thursday for Samsung and from March 30 ⁠for ⁠SK.

The moves follow government guidance aimed at cutting fuel consumption as concerns grow over prolonged disruptions linked to the Iran-related energy crisis.


Epic Games to Cut More Than 1,000 Jobs as Fortnite Usage Falls

The Epic Games logo, maker of the popular video game "Fortnite", is pictured on a screen in this picture illustration August 14, 2020. (Reuters)
The Epic Games logo, maker of the popular video game "Fortnite", is pictured on a screen in this picture illustration August 14, 2020. (Reuters)
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Epic Games to Cut More Than 1,000 Jobs as Fortnite Usage Falls

The Epic Games logo, maker of the popular video game "Fortnite", is pictured on a screen in this picture illustration August 14, 2020. (Reuters)
The Epic Games logo, maker of the popular video game "Fortnite", is pictured on a screen in this picture illustration August 14, 2020. (Reuters)

Epic Games said on Tuesday it would cut more than 1,000 jobs after a drop in engagement for "Fortnite," its flagship title, the latest cuts in the video-game industry whose growth has stalled amid economic uncertainty.

The cuts, along with more than $500 million in savings from lower contracting and marketing spending and unfilled roles would put the company in "a more stable place," Chief ‌Executive Tim Sweeney said ‌in a note to employees.

The ‌cuts ⁠are the latest ⁠in the gaming sector, where companies have faced weaker growth as consumers have been sticking with proven titles amid economic uncertainty.

But even those, especially live services games, which depend on a steady stream of new content to ⁠keep players engaged, are now showing signs ‌of cracks.

"We've had ‌challenges delivering consistent Fortnite magic," Sweeney said, adding "market conditions ‌today are the most extreme" since the early ‌days of the company founded in 1991.

"The layoffs aren't related to AI," Sweeney noted amid industry worries the technology could replace video-game developers.

The move marks ‌Epic's second major round of layoffs in three years. In September 2023, ⁠the company ⁠cut about 830 jobs, or roughly 16% of its workforce.

It was not immediately clear what percentage of staff would be impacted by Tuesday's announcement.

The gaming sector has faced mounting pressure. In September, Electronic Arts laid off hundreds of workers and canceled a Titanfall game that was in development at its Respawn Entertainment unit, according to media reports. Amazon's broader job cuts late last year also affected its gaming division.


Chinese Firms' Involvement in 5G Network May Deter Investors, EU Warns Vietnam

EU Commissioner for International Partnerships Jozef Sikela speaks during the EU-Vietnam business and investment forum in Hanoi on March 24, 2026. (Photo by Nhac NGUYEN / AFP)
EU Commissioner for International Partnerships Jozef Sikela speaks during the EU-Vietnam business and investment forum in Hanoi on March 24, 2026. (Photo by Nhac NGUYEN / AFP)
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Chinese Firms' Involvement in 5G Network May Deter Investors, EU Warns Vietnam

EU Commissioner for International Partnerships Jozef Sikela speaks during the EU-Vietnam business and investment forum in Hanoi on March 24, 2026. (Photo by Nhac NGUYEN / AFP)
EU Commissioner for International Partnerships Jozef Sikela speaks during the EU-Vietnam business and investment forum in Hanoi on March 24, 2026. (Photo by Nhac NGUYEN / AFP)

The involvement of Chinese vendors in the rollout of Vietnam's 5G network may deter foreign companies from investing in the Southeast Asian nation, a top EU official said on Tuesday.

European telecom firms Ericsson and Nokia are developing Vietnam's core 5G network, but in recent months Vietnamese state-owned operators have awarded 5G contracts to Chinese rivals Huawei and ZTE.

That marks a notable shift following years of caution towards China, and the change has ⁠sparked concerns among ⁠Western officials.

"Be careful with dependencies in strategic areas," EU Commissioner for International Partnerships Jozef Sikela said when asked about the Chinese contracts.

"5G is the new battlefield," he told Reuters on the sidelines of an EU-Vietnam investment forum in Hanoi. "Through the network you can access a lot and you can control a lot, ⁠and you have to be always careful who is your trusted vendor."

"If investors have doubts about the security of their data, they might decide not to take the risk and not to invest," he said.

Vietnam's foreign ministry and the Chinese embassy in Hanoi did not immediately reply to emailed requests for comment.

Vietnam is a major industrial hub and hosts large manufacturing operations of big Western multinationals, including European firms Adidas and Lego. Its decades-long economic boom hinges on foreign investment.

The European Union and European states ⁠on Tuesday ⁠announced a new package of investment in Vietnam's transport and energy sector.

Sikela said risks to future investments from unsecure networks were at this stage theoretical, and noted that several European countries allowed Chinese telecom vendors in the past.

Huawei and ZTE are banned from the telecom networks of several European countries and in the United States, because they are seen as risks to national security.

The companies have criticized the restrictions as unfair, rejecting the concerns as baseless.

Vietnamese officials have said that Chinese telecom equipment is reliable and cheaper, while downplaying security risks. Additional contracts with Chinese firms are under discussion, Reuters reported earlier this month.