Switch 2 is hot on sale, but Nintendo's president talks about "transformation"
Nintendo President Shuntaro Furukawa warned of the need to break free from excessive reliance on game consoles, pointing out that a focus on hardware could lead to missed opportunities. He emphasized that the company has entered a "new phase"—having made progress in businesses such as theme parks and movies, and expanding into emerging markets like Asia and Latin America. Nintendo plans to release a new animated Mario movie next year, while also producing a live-action Legend of Zelda movie
As global players cheer for the explosive sales of the Nintendo Switch 2, Nintendo President Shuntaro Furukawa is pondering a deeper question: how to break free from excessive reliance on game consoles?
According to reports from the Wind Trading Platform, the new generation game console Switch 2 launched globally on June 5 has performed strongly, with sales exceeding 3.5 million units within four days. However, during an investor meeting with Morgan Stanley on July 3, Shuntaro Furukawa stated that it is still too early to determine whether the demand is strong, believing that "maintaining sales momentum will become more challenging."
Shuntaro Furukawa emphasized the risks of being overly focused on the game console business. He stated that the company has successfully integrated portable and home consoles into the Switch platform, but "if we focus too much on this, we may overlook other opportunities."
The Nintendo leader is more concerned about the company's long-term transformation strategy and has shifted the discussion towards expansion into emerging markets and the development of non-console businesses. He emphasized during the meeting that the company has "entered a new stage of development," having achieved success in non-console businesses such as theme parks and movies over the past few years, which will become important supports for the company's long-term growth.
As a company, we feel that we have entered a new stage because we have found a certain level of success in businesses outside of game consoles, such as theme parks and movies.
To support market expansion, Nintendo plans to release a new animated movie featuring Mario next year and produce a live-action movie of The Legend of Zelda. Shuntaro Furukawa believes that film production can not only increase customer touchpoints but also become an important source of quality content in the long run.
Facing sluggish growth in mature markets, Shuntaro Furukawa is looking towards emerging regions such as Asia and Latin America. He pointed out that the cumulative sales of Switch hardware have reached 150 million units, and adding new users in traditionally strong markets is "not easy." Although users in Asia and Latin America are growing, there are relatively few casual players in these regions, necessitating active participation in cultivating the Nintendo fan base.
Regarding hardware profitability, Shuntaro Furukawa admitted that the profitability level of Switch 2 is comparable to that of the Switch at its launch in 2017, but due to the rise in component prices after the pandemic, the prospects for reducing costs through economies of scale are not optimistic.
According to a Morgan Stanley report, many players are currently experiencing Mario Kart World bundled with Switch 2, and the compatibility of Switch software on Switch 2 has received positive feedback.
The above exciting content comes from [Wind Trading Platform](https://mp.weixin.qq.com/s/uua05g5qk-N2J7h91pyqxQ).
For more detailed interpretations, including real-time interpretations and frontline research, please join the【 [Wind Trading Platform ▪ Annual Membership](https://wallstreetcn.com/shop/item/1000309)】.
The Wind Trading Platform is jointly created by Wallstreetcn and Zhizhi
[](https://wallstreetcn.com/shop/item/1000309)