
The Switch 2's promising start hides an uncertain future
Down the line, however, concerns about tariffs, a steadily rising cost of living, and a saturated market might cast a shadow on the Switch 2. The Verge talked to analysts, journalists, and normal video game playing people to put the Switch 2 launch in perspective. The key takeaway? While the console will assuredly have another blockbuster debut, its future looks much less certain.
The Wii U gets brought up a lot in the conversation surrounding the Switch 2, as it's the most famous example of a Nintendo failure. 'The Wii U, with its confusing controller-screen gimmick, sluggish user interface, and lack of a great Custom Robo game, was one of Nintendo's worst flops,' GameFile author Stephen Totilo explained in an email to The Verge.
It sold less than 14 million units, a dramatic drop from the Wii, which sold over 100 million. And while Nintendo expects to sell one million more Switch 2 units in its first year than the Wii U sold in its life, that's not necessarily indicative of long-term success. 'The Wii U nevertheless sold out at launch back in November 2012,' Totilo said, 'pulling in sales that reportedly topped the US launch sales of the Xbox 360 and PS3.'
When looking at launch sales projections and predictions, Mat Piscatella, video game analyst for Circana, warned that what a console does during its launch period is no indication of what it'll do overall.
'Sales around the launch period are more reflection of available supply than anything,' Piscatella said. Another, more important factor for a console launch is the audience. 'With anything regarding gaming right now, we have to separate the enthusiast market from the mass market, because they're behaving very differently,' Piscatella added.
According to Piscatella, it's the enthusiasts driving most of the Switch 2 hype we're seeing, particularly since the last major console launches – the PS5 and Xbox Series X/S – happened five years ago. 'We haven't had new hardware designed for the masses in a long time,' he said. 'So we have a big pent up demand just for something new.'
We're seeing part of that demand satisfied by the Switch 2 pre-order frenzy. The day pre-orders opened in the US (after a few weeks' delay because of President Donald Trump's tariff chicanery) they sold out within hours. GameStop held in-store pre order events that saw people lining up outside storefronts for hours to secure one.
But what will really determine the success of the console is how the bigger, mass market reacts, the same one that made devices like the Wii and original Switch such hits. Piscatella says this group is biding its time right now, 'leaning into free-to-play and the content they already have.'
It's a tricky time for the industry. New blockbuster titles are getting ever more expensive to make. Consumers, in turn, are buying fewer of them in favor of spending their time and money in established games, all while persistent layoffs three years running are making it harder for new games to come out on time. Add that to 2025's unique and volatile US tariff situation and the associated price increases, and now is one hell of a time to launch a video game console.
'A games console is for a lot of people [...] an unaffordable luxury, especially for families,' said Keza MacDonald, video game editor at The Guardian and author of a forthcoming book about Nintendo's history. MacDonald believes that most people who want a Switch 2 will have already pre-ordered one and that Nintendo's real work will be to convince everyone else they want one too – a job the company doesn't seem to be doing that well.
Silvie Krekow, a gamer who works at Vox Media as a creative director, says she knows 'almost nothing' about the Switch 2. She doesn't frequent gaming websites or consume gaming media, but she noted it was odd that 'a 33-year-old gamer with disposable income who owns a Switch, PS4, and Xbox One' didn't casually come across at least some Switch 2 information.
Other colleagues and self-described 'gaming casuals' I spoke to expressed similar sentiments. According to MacDonald, Nintendo is handling this launch period very conservatively. 'It's like, 'We know everyone's going to buy this anyway. We don't have to sell you on it,'' she said. 'But I'm not sure if that's true.'
At the Switch 2 Direct in April, Nintendo showed off a console with some slight quality-of-life and performance upgrades. That may work for the enthusiasts – they get more of what they already liked about the original. But without something more to entice consumers beyond the diehards, the Switch 2 may struggle to find its audience.
'As for the [Switch 2 features] I'm not particularly excited,' said Kushal Raval, an operations manager at Vox Media. 'The rolling controller sounds interesting, but the voice chat feature seems a bit pointless.'
Kushal owns a Switch, which he said didn't run games like Fortnite as well as he wanted. And while the Switch 2's technical upgrades will likely improve this, Kushal said, 'With a $450–$500 price tag, I'm leaning much more toward getting a Steam Deck.'
The Switch 2 also has to compete against people content with its predecessor. 'I have a Switch Lite that I bought during the pandemic,' said Jackie Noack, a video producer at Vox Media. 'My husband has the Switch 1, and I don't think we use them quite enough to justify replacing them.' For Noack, the console's price is also a major factor. '$500 does seem steep to me!'
The Switch 2 will not be a dud like the Wii U, but it likely will not reach the heights of the original Switch. The price and lack of defining new features are two reasons, but perhaps the biggest is that the circumstances that fostered the OG Switch's success were incredibly unique.
'The Switch really picked up during the pandemic with Animal Crossing. That was an enormous hit,' MacDonald said. 'And obviously that was such a unique combination of circumstances, I'm not sure that could happen again.' Piscatella agrees: 'The Switch is an outlier success. I think [the Switch 2] is unlikely to do Switch numbers in the long term.'
The lead up to the launch of the Nintendo Switch 2 has been filled with so much built-up pressure from the anticipation of hungry gamers eager for any news, which was exacerbated by prolific leaks and Nintendo's typical propensity for silence. With the console's official reveal and the enthusiastic response from dedicated fans, that pressure could not be higher – and with launch coming next week, the release valve is finally about to open.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
16 minutes ago
- Yahoo
Why the market is shrugging off Trump's firing of the BLS chief
Trump fired the head of the BLS on Friday, but so far, markets have looked past the shock decision. Sources say there are a variety of other sources investors can use to assess the employment picture. Strong earnings and higher rate-cut odds are powering stocks higher on Monday. August kicked off with a shocker, with Donald Trump firing the head of the Bureau of Labor Statistics after a less-than-rosy July employment report. The move sparked prognostications about untrustworthy government data going forward and comparisons to China, which some believe is uninvestable due to issues with data quality. Then why is the market unfazed as trading kicks off on Monday? Stocks rallied to start the week, with the Dow up almost 500 points at midday and the Nasdaq Composite jumping as much as 2%. For now, markets are focused on other things, like the higher odds of a September rate cut after the employment picture suddenly soured. "Obviously, the firing was unconventional. That's pretty much everything with this administration compared to previous administrations, but at this point, there is so much private data that the market can look at other sources," Paul Hickey, cofounder of Bespoke Investment Group, told Business Insider. Apart from the BLS statistics that investors already parse, there's a patchwork of private and public data, including ADP data, hiring and firing data from a range of consulting firms, and labor market sentiment indicators from sources like the Conference Board. "There are private sources of data, and if they are moving in the opposite direction from the government data, then it becomes an indicator that something is off with the statistics,"Aleksandar Tomic, Associate Dean, Strategy, Innovation, & Technology at Boston College, told Business Insider. Trump said Erika McEntarfer's firing was justified and that the July data had been manipulated to make the administration look bad. He did not offer evidence for this claim, though White House economic advisor Kevin Hassett said the revisions in the data are "hard evidence." The July revisions were substantial, showing that the US added nearly 260,000 fewer jobs in May and June than had been initially reported. Trump and Republicans have also criticized earlier revisions, including last year's that showed over 800,000 fewer jobs added in the 12 months leading up to March 2024. The irony of Trump's anger over the July jobs numbers is that the weak report has pushed up the odds of the September rate cut to nearly 90%, getting the president closer to seeing the Fed loosen monetary policy as he's been demanding all year. But for investors, things like the robust GDP report for the second quarter and solid corporate earnings, particularly among mega-cap tech giants, are boosting the outlook for the market even as Trump's move stirs some uncertainty. For Sergio Altomare, a former senior enterprise architect at the Fed, the next big question is who will replace McEntarfer at the helm of the BLS. "I think the ultimate impact is going to take time to sort itself out, but I think really the immediate thing is, who gets appointed? What is their background? What does the data show? Is it dramatically different from what we're seeing?" Altomare said that it will be difficult to properly assess the impact of Trump's decision on financial markets until these questions have clear answers. Luckily for markets, some answers could come soon. Trump has said that in the coming days, he'll nominate a new BLS chief, as well as a replacement for Fed Gov. Adriana Kugler, who resigned on Friday. Both positions require confirmation by the Senate. It is also worth noting that some agree with the president's decision. For his part, investing legend Ray Dalio said on Monday that he, too, would probably fire the BLS chief. In a post on X, he described the agency's process for making key economic estimates as "obsolete and error-prone," with no plan to fix it. "The revisions brought the numbers toward private estimates that were in fact much better," Dalio said. Read the original article on Business Insider
Yahoo
16 minutes ago
- Yahoo
Here's What Key Metrics Tell Us About Agilon (AGL) Q2 Earnings
Agilon Health (AGL) reported $1.39 billion in revenue for the quarter ended June 2025, representing a year-over-year decline of 5.9%. EPS of -$0.25 for the same period compares to -$0.07 a year ago. The reported revenue represents a surprise of -4.98% over the Zacks Consensus Estimate of $1.47 billion. With the consensus EPS estimate being -$0.11, the EPS surprise was -127.27%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Agilon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Avg. Medicare Advantage Members: 498,000 compared to the 493,100 average estimate based on two analysts. Revenues- Other operating: $2.94 million versus $3.16 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -7.4% change. Revenues- Medical services: $1.39 billion compared to the $1.46 billion average estimate based on five analysts. The reported number represents a change of -5.9% year over year. View all Key Company Metrics for Agilon here>>> Shares of Agilon have returned -30% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Agilon Health, Inc. (AGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16 minutes ago
- Yahoo
Dollar weakens as rate cut odds rise, tariff uncertainties linger
By Ankur Banerjee and Gregor Stuart Hunter SINGAPORE (Reuters) -The U.S. dollar wavered on Tuesday as the rising odds of Federal Reserve rate cuts weighed on sentiment, while investors assessed the broader economic impact of U.S. tariffs unleashed last week. The dollar remained under pressure following Friday's U.S. jobs report that showed cracks in the labour market, prompting traders to swiftly price in rate cuts next month. U.S. President Donald Trump's firing of a top statistics official and the resignation of Federal Reserve Governor Adriana Kugler also exacerbated market unease, leading to a sharp dive in the dollar on Friday. The U.S. currency found its footing on Monday but was weaker in early trading on Tuesday. The euro last bought $1.1579 while sterling stood at $1.3298. The dollar index, which measures the U.S. currency against six other units, was at 98.688 after touching a one-week low earlier in the session. Traders are now pricing in a 94.4% chance of the Fed cutting rates in its next meeting in September, compared to 63% a week earlier, CME FedWatch tool showed. Goldman Sachs expects the Fed to deliver three consecutive 25 basis point cuts starting in September, with a 50 basis point move possible if the unemployment rate climbs further in the next report. San Francisco Federal Reserve Bank President Mary Daly said on Monday that given mounting evidence that the U.S. jobs market is softening and no signs of persistent tariff-driven inflation, the time is nearing for rate cuts. "I was willing to wait another cycle, but I can't wait forever," Daly said. Meanwhile, the focus remains on tariff uncertainties after the latest duties imposed on scores of countries last week by Trump, stoked worries about the health of the global economy. The Japanese yen firmed slightly to 146.95 per dollar after minutes of its June policy meeting showed a few Bank of Japan board members said the central bank would consider resuming interest rate increases if trade frictions de-escalate. The Swiss franc was steady at 0.8081 per dollar after dropping 0.5% in the previous session as Switzerland geared up to make a "more attractive offer" in trade talks with Washington to avert a 39% U.S. import tariff on Swiss goods that threatens to hammer its export-driven economy. The long-term impact of the tariffs though remains uncertain, with traders bracing for volatility. "This is going to be like the pandemic, we all expect to see the transitory impact on supply chains to happen very quickly," said Rodrigo Catril, currency strategist at National Australia Bank in Sydney. "It'll probably take six months to a year to see exactly where we land and who's going to be winners and losers from all this." In other currencies, the Australian dollar was 0.11% higher at $0.64736, while the New Zealand dollar rose 0.11% to $0.5914. "We're still of a view that the big dollar is heading down," Catril said, referring to the U.S. dollar. "While global growth means pro-growth currencies like Asian currencies and the AUD should struggle, we've other structural dynamics in the USD, where policies are dollar-negative."