By Megumi Fujikawa
TOKYO--Nintendo seems to have hit a home run with the Switch 2, as red-hot demand for the gaming device makes it the fastest-selling console in the company's history.
The Switch 2--Nintendo's first new gaming device in eight years--has sold over 3.5 million units worldwide since its June 5 launch. That is the highest tally for the first four days of sales for any Nintendo console, the Japanese company said Wednesday.
There have been some reservations about Nintendo's ability to repeat the runaway success of the first generation of the Switch, a hybrid console that can be played at home and on the go. Worries about tariffs fueling inflation and slowing growth raised questions about consumers' appetite for pricier products like the Switch 2, which sells for $450 in the U.S.
The uncertain environment doesn't seem to have curbed demand for the Switch 2 so far, but it remains to be seen if momentum will hold.
In Japan, about 2.2 million people signed up for a lottery to buy the console on the day of its release, Nintendo said. Winners got their hands on a Switch 2, leaving the rest to wait for the next lottery or try their luck at select retailers.
On the websites of some popular global retailers like Walmart, the Switch 2 is sold out. Tight supply raises the risk of reselling woes.
Already, the Switch 2 is all over resale sites in Japan, with a far higher price tag than the official 49,980 yen, or about $345. Online flea-market operators have warned customers to be wary about price gouging and fakes. Some posts advertising a Switch 2 are just selling a box or a picture of the console, and Yahoo Auctions in Japan has prohibited Switch 2 listings for the time being to avoid confusion.
High interest led Jefferies analysts to recently raise projections for Switch 2 sales. They now expect sales of 66 million units by March 2028, versus 60 million previously.
Strong consumer demand helps underpin that confidence, the Jefferies analysts said in a note, adding that Nintendo's track record in managing the Switch pipeline strengthens their conviction.
The videogame maker behind the "Super Mario" and "Pokemon" franchises has said it expects to sell 15 million units of the Switch 2 globally in the current business year ending March 2026.
Nomura Securities analyst Naruhito Miki expects demand for past game titles to be boosted by the sharp improvement in the Switch 2's technical performance.
"We will be interested to see if this contributes to record-high profits at an early stage," he said.
The Switch 2 has a larger display than its predecessor, new magnetic controllers, and more powerful processing and graphics capabilities.
Nintendo in May guided for higher annual profit even after posting a drop for the previous year, betting that demand for the Switch 2 will boost earnings. For the current business year, it projects that net profit will rise 7.6% and that revenue will climb 63%.
Despite the positive headlines, shares of Nintendo fell in Tokyo on Wednesday. The declines could reflect some profit-taking, and followed an announcement delaying the release of the live-action "The Legend of Zelda" film by more than a month over production reasons.
Nintendo has been looking to build on its previous box-office success with "The Super Mario Bros. Movie" as it diversifies revenue streams.
Nomura's Miki said the delay shouldn't have a major impact on the company's earnings outlook.
The stock was last down 3.7%, but remains up 26% year to date.
"As Nintendo begins Switch 2 journey, we see earnings growth setting up for a very strong run," Jefferies analysts said.
Write to Megumi Fujikawa at megumi.fujikawa@wsj.com
(END) Dow Jones Newswires
06-11-25 0243ET
