Nintendo Switch 2 Sells 3.5 Million in 4 Days!

[Music] All right, Switch 2. All right, it broke records. 3.5 million sold in 4 days. This was according to Nintendo. Somebody else reported sales have reached a million units in Japan, making it the country's biggest console launch to date. The US week records 1.1 million units. It's weird that the US was only 1.1 and Japan was a million. It's an allocation issue, I'm sure. Yeah. I mean, most people I know haven't gotten theirs yet. Previous record was held by PlayStation 4 according to Circono, which is in the US. The top three bestselling Switch 2 games, Mario Kart World, Cyberpunk 2077, and then a enhanced Zelda Tears of the Kingdom. So fan boys and girls probably got their pre-orders versus any kid by how those games are stocking up. Nintendo on track to keep its 15 million

forecast by March. They're going to blow that [ __ ] away. I mean, if they don't do 20 to 22, I would be absolutely shocked. Wow. If they can make that many, this is the launch quantities, right? They're going to keep adding more and more to the channel and they'll sell out and add more and add more and the whole goal is to build up inventory for holiday because launch is different obviously than typical but like 50% of the sales of hardware for Nintendo is in December, right? For the whole year, right? So, it's a gift giving item. It's something to put under the tree. And so, they're going to try to build up law numbers for that. And then after holiday, they're just going to keep replenishing as much as possible. And so I can't even imagine that they don't get to a 20 million plus type number by the end of the fiscal year in March. So I think the only criticism I have of this launch is the same criticism I've had on Nintendo from the very their inception. I think is they give not one [ __ ] rat's ass about third party, right? That the fact that there are no third party games or

ports for like for every anything, right? like for Madden, for FIFA, for NBA 2K, for whatever is only because they did not allow it. Whether they did not provide the dev kits or they did not provide the support or they wanted to make it a clean launch for Nintendo, they are the worst worst partner out of all the console manufacturers by a long shot because they don't really just don't care. Having said that, I think what's cool is that for Holiday, we should see all these games released. They will have a bigger install base. It'll actually probably be better for third party to release at holiday. And maybe that's part of the calculus to some degree. But anyway, they should have lots more games available at launch for this title besides like Cyber Punk and that's it, right? Enhanced Tears of the Kingdom. Yeah. Yeah. I mean, but content's coming on, right? So, Donkey Kong's coming and then they have the Pokemon game which my kids are really excited about and then a bunch of other stuff for holiday. Nonetheless, yeah,

this looks like an absolute killer launch. So, yeah. Are they making positive unit economics on this? Is there margin on each unit? They historically have always maintained margins on every unit. Yes. So, I don't think this would be any different. And plus, it's like just an update. It feels like it's not like a whole brand new. I mean, they probably still had to change some of the manufacturing, but they probably have some economies of scale, don't they? Yeah. I actually I haven't seen an estimate on the bill of materials on this. I just haven't been looking. I just assume that they're basically break even because that's the way they've always positioned themselves. Break even or better. I don't understand what this unlocks, Eric. You know, it just seems like, you know, iOS, you know, 3GS or something. Yeah. I I just it's a hardware update. You know, the the internals get updated a little bit. It can run a couple more third-party software. The narrative is the same. I mean, listen, I'm not promoting the camera thing, but I have

had younger folks say that the camera thing is cool that you can kind of pretend you're an influencer. The pictureand picture thing. How many iPhones have you owned over the last like 10 years, Mr. Philip Black? Quite a few. If they gave me more upgrades to the Switch, like on a more continuous basis, I'd easily buy into that. That's what they were supposed to do. That was the actually the whole vision of this thing was that they were going to release it like three years ago. They were gonna release some kind of upgrade, right? It just took them forever, you know? So, yeah. I mean, it's just a more capable device. It's creates, again, I've always said like any new hardware purchase just creates a more active install base. So, like people are going to be buying more software when they get new hardware. And frankly, the original Switch was a piece of [ __ ] okay? Like it did really well and it was a successful launch, but it was a terrible piece of hardware. It was a joke even then, right? And can you imagine now? And so like people are just dying for an upgrade of something more capable that has onboard storage, a better Wi-Fi chip, more capable Bluetooth, and not to

mention the fact that Yeah. Yeah. the processors like the Xbox Series S. So, I don't know. I think this is a far better strategy than starting over like starting up with some other new like crazy scheme like the Wii U, you know, like this is it. This is what works. Not very innovative, I'll tell you that much. And so, you know, but you don't like innovation. Not on No, not on hardware. No, I I think that's not that that this is far better business decision than starting over from scratch with a new install base, convincing people to buy something new. Well, it's basically a relaunch. It's was it eight years? So, you know, you weren't born yet and now you're an 8-year-old. It's brand new to you. So you get in a sense like another guaranteed launch success because if you had success with the first one, the next eight-year-old's probably going to be like, "Cool, this is awesome." How we think about it in toys, right? like every 8 years you can relaunch a

brand because it's brand new to someone and if it was successful just launch it again and then you have nostalgia because apparently eight years is nostalgia as proven by Fortnite when they I'm fascinated how Nintendo just keeps on getting this audience like always like a new batch. It's so weird. And keeping the old batch, it it's fantastic characters and IP nostalgia. As a parent, you're like, "Oh my god, I grew up on Mario. I love it." Even though you try to go back and play Super Mario Brothers and you want to kill yourself. It's so bad. Yeah. Yeah. Because we just played Super Mario I think like yesterday on the old Switch. I put my girls to it and they're like, "It's kind of lame. Let's let's get on Roblox. Why are we doing this?" No, you got to take the new characters. And you know, they are updating play patterns. They are updating graphics to make it, you know, Nintendo for this generation. But yes, it does compete with crappy, you know, well, I shouldn't say crappy cuz those kids love Roblox games. But

the thing I'm remarked by is they haven't had the impact from Roblox. Like I expected something to show up in their numbers and there hasn't been like any. Roblox is on the other platforms. They're on PlayStation, Xbox. Yep. I can't imagine they'd ever be on Nintendo. It's possible. It's like 80 90% of on mobile. Yeah. But but they're now they're marching towards 100 million MAU. Like I would expect to touch Switch in some way and it doesn't 100 million in DAU, dude. Yeah. DA, excuse me. The quality of the content is so at a different level like it doesn't matter. You're competing for time for a limited group of people. And I'm shocked they've been so resilient to Roblox's inquisition. It's parent approved. Many I don't know if if you guys have the same thing. Many parents are like sneaking in a little bit of time on the Switch themselves because they have that nostalgia going. [Music]