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Nintendo Switch 2: Anticipations, Features, and Market Impact

GOOVER DAILY REPORT 6월 13, 2024
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TABLE OF CONTENTS

  1. Summary
  2. Rumors and Speculations
  3. Official Announcements
  4. Market Implications
  5. Conclusion

1. Summary

  • This report provides a comprehensive analysis of the highly anticipated Nintendo Switch 2, based on collected information from various sources. It reviews the rumors, expected features, pricing details, and release dates surrounding the upcoming console. Additionally, the report explores the implications for retro gaming and Nintendo's market strategy moving forward, including the company's financial outlook. This structured breakdown aims to deliver an insightful overview of what can be expected from the successor to the current Nintendo Switch.

2. Rumors and Speculations

  • 2-1. Announcement Timeframe

  • Nintendo President Shuntaro Furukawa mentioned via Twitter on May 7, 2024, that an announcement about the Nintendo Switch 2 will be made before the end of the fiscal year, which concludes on March 31, 2025. Despite rampant speculations, the exact release date has not been confirmed, although it's anticipated that the announcement could occur as early as fall 2024, aligning it with historical console release patterns.

  • 2-2. Potential Features

  • Rumors suggest significant advancements in performance for the Nintendo Switch 2, including support for 4K resolution when docked, 12GB of LPDDR5X RAM, and 256GB of internal storage. Other notable features include an 8-inch LCD screen, magnetic joycons for easier attachment, and built-in microphones similar to the PS5 controller, enhancing both gameplay interaction and communication. The console is also expected to be fully compatible with existing Switch games and accessories.

  • 2-3. Backward Compatibility

  • The Nintendo Switch 2 is expected to support backward compatibility with existing Switch game cartridges and digital games. This feature is in line with Nintendo's historical approach, as seen in previous console generations. The backward compatibility ensures that early adopters of the new console can continue to enjoy their existing game library without interruption.

  • 2-4. Speculated Design and Technology

  • Leaked information and various sources suggest that the Nintendo Switch 2 will feature a larger physical size compared to the original Switch, yet more compact than the Steam Deck. An 8-inch screen is expected, alongside a stronger emphasis on power and performance, potentially achieving 4 Teraflops in docked mode with an Nvidia Tegra T239 chip. One unique aspect is that accessory manufacturers have been allowed to feel the new hardware without seeing it, confirming a larger profile and the continuation of Joycon use with magnetic attachments. Additionally, discussions about enhanced interactivity with built-in microphones and increased graphics performance are widespread, possibly enabling 4K OLED options for handheld play.

3. Official Announcements

  • 3-1. Expected Launch Date

  • Nintendo President Shuntaro Furukawa announced that the successor to the Nintendo Switch will be revealed before the end of March 2025. This aligns with various leaks and rumors suggesting a Q1 2025 launch. Confirmed reports indicate that Nintendo has delayed the launch to ensure adequate availability and a strong library of games at release. This delay has also been attributed to avoiding shortages, ensuring developers have sufficient time to create optimized titles for the new console.

  • 3-2. Pricing Details

  • The Nintendo Switch 2 is expected to be priced higher than the current Switch OLED model. Speculation suggests the cost could range between $399 and $499, influenced by market conditions and inflation. Historically, Nintendo has aimed to price their consoles competitively. The base Switch currently costs $300, the handheld-only Switch Lite costs $200, while the Switch OLED costs $350. Given these figures, the Switch 2’s pricing is likely to reflect its enhanced capabilities and feature set.

  • 3-3. Anticipated Game Releases

  • Rumors indicate that Nintendo is working on new titles for major franchises, including Mario and Zelda. Projects codenamed Edward, Anna, SPRed, and Spiral suggest possible sequels or new entries in popular series such as The Legend of Zelda, Super Mario Odyssey, Nintendo Switch Sports, and Splatoon. Although these titles have not been officially confirmed, it’s anticipated they will be part of the Switch 2’s launch or early release lineup, catering to long-time fans and driving initial sales of the new console.

  • 3-4. Communication Strategies

  • Nintendo has tactically managed fan expectations through strategic communication. Despite the excitement surrounding the Switch 2, Nintendo confirmed that the upcoming Nintendo Direct in June would not include information about the new console. This approach has been essential in controlling the narrative and maintaining focus on the current lineup, while subtly building anticipation for the new system. President Shuntaro Furukawa has been instrumental in this strategy, ensuring that official announcements remain promising yet measured.

4. Market Implications

  • 4-1. Impact on Existing Nintendo Switch User Base

  • The transition from the original Nintendo Switch to the anticipated Switch 2 could significantly affect the current user base. With over 141 million units sold and a robust active user base reported at 123 million between April 2023 and March 2024, Nintendo must carefully manage this shift. Although the Switch 2 promises to be a substantial upgrade, backward compatibility is expected to be integral to retain existing users. This compatibility should ease users into the new system, allowing them to continue enjoying their current game libraries.

  • 4-2. Comparison with Competitors

  • The gaming market is highly competitive, with key players like Sony's PlayStation 5 and Microsoft's Xbox Series X/S. Nintendo's strategic focus on a hybrid console that can function both as a home and handheld device gives it a unique market position. Speculations suggest that the Switch 2 will offer significant hardware upgrades, potentially bringing it closer to the performance levels of the PS5 and Xbox Series X. However, official specs are yet to be confirmed. Notably, a differentiation point for the Switch 2 will be its exclusive titles and unique design, which have been strong selling points for the original Switch.

  • 4-3. Nintendo's Strategic Focus

  • Nintendo's strategy involves maintaining strong engagement with the current console lineup while preparing for a smooth transition to the Switch 2. The company's decision to delay the announcement and details of the Switch 2 aims to manage fan expectations and sustain interest in the existing Switch models. Shuntaro Furukawa, Nintendo's President, has indicated that the formal reveal will occur before the end of the fiscal year, concluding in March 2025. This cautious approach is designed to balance current sales and cultivate readiness for the new system.

  • 4-4. Financial Projections and Adjustments

  • Nintendo has projected a slowdown in Switch console sales, with expectations to sell 13.5 million units in the current fiscal year, a decrease from 15.7 million units sold in the previous year. Additionally, the net profit is forecasted to drop by 39%, accompanied by a 19% decline in revenue. Despite these financial adjustments, the company's recent efforts include promoting the OLED model, which saw a modest 1.1% increase in sales year-over-year. Nintendo's focus remains on sustaining user engagement, evidenced by the 123 million annual players reported between April 2023 and March 2024.

5. Conclusion

  • The Nintendo Switch 2 is shaping up to be a significant leap forward from its predecessor, promising enhanced capabilities and a strong lineup of games. Despite delays in its release and high expectations, Nintendo's strategic messaging aims to manage fan anticipation effectively. The potential impact on both the current user base and competitors is considerable, with financial projections indicating a cautious outlook. As preparations for the new console advance, Nintendo's focus remains on sustaining the success of the existing Switch lineup. This report underscores the key factors that will influence the gaming market upon the Switch 2's eventual release.

6. Glossary

  • 6-1. Nintendo Switch 2 [Product]

  • The anticipated successor to the Nintendo Switch, expected to launch by March 2025. Rumored to feature an 8-inch LCD screen, T239 SoC, magnetic Joycons, built-in microphones, and support for 4K resolution. It is foreseen to retain backward compatibility and maintain a hybrid design. The new console will likely be priced between $300 and $499.

  • 6-2. Nintendo [Company]

  • A leading video game company known for pioneering home and handheld consoles. With the upcoming Switch 2, Nintendo aims to continue its legacy of innovative gaming experiences amidst slowing sales of the current Switch model and projections of declining revenue for the upcoming year.

  • 6-3. Retro Gaming [Category]

  • A gaming community interest that may be significantly impacted by the Nintendo Switch 2, especially with features such as backward compatibility. The future of retro gaming on new platforms like the Switch 2 remains a topic of keen interest and speculation among enthusiasts.

7. Source Documents