Nintendo Co. NTDOY NTDOF Switch 2 is expected to remain in short supply until next spring, according to analysts.
What Happened: According to Nikkei Asia's report, the Nintendo Switch 2, which was released on June 5, is still in high demand, with many potential buyers in Japan resorting to lottery systems.
The console has been selling at a record pace and is still hard to find in stores a month after its release.
Analysts predict that the shortage may continue until next spring or even longer. Despite the high demand, the console’s availability is expected to remain limited. The shortage is attributed to the overwhelming demand and the company’s efforts to strengthen its production system to meet the demand.
Toyo Securities senior analyst Hideki Yasuda said the Switch 2 is “overwhelmingly popular compared to past game consoles, and consoles that have a strong initial response tend to continue to have high demand,” according to the report.
Why It Matters: The Nintendo Switch 2 has been a hot topic in the gaming industry. The new console, which boasts AI processors to enhance gameplay, was released amid much fanfare.
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Despite the shortage, the Switch 2 has been selling at a record pace. Analysts predict sales of 18 million to 20 million units this fiscal year, which is a 20% to 30% increase from the original Switch. The shortage is expected to continue due to the high demand, with some analysts projecting that it may last until next spring.
The sales of the Nintendo Switch 2 have also had an impact on the other companies’ stock prices. The stock price of Nintendo had been rising due to the popularity of the Switch 2, but it briefly dipped after U.S. President Donald Trump expressed skepticism about a Japan-U.S. tariff agreement.
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