Latest news with #consumerSentiment
Yahoo
6 hours ago
- Business
- Yahoo
Consumer Sentiment Logs First Increase in 6 Months, Survey Confirms
US consumer sentiment rose for the first time in six months in June, final survey results from the U
Japan Times
16 hours ago
- Entertainment
- Japan Times
The 'internet' hated Switch 2 — consumers bought it anyway
Online, gamers declared the Switch 2 "anti-consumer.' In reality, no one cared. With Nintendo charging $450 for its new device — and up to $80 for some games — influencers and TikTokers took to their accounts to warn it was too expensive. Across social media, others decried how new terms of service gave the Japanese firm the ability to remotely disable the latest machine if they detected unauthorized activity. Many games sold in physical packages were, they complained, glorified download codes. Anyone expecting the backlash to dent sales was disappointed. The Switch 2 is not only Nintendo's best-selling device ever, it has become the fastest-selling games console of all time with 3.5 million units snapped up in the first four days alone. Shares have hit record highs. For executives, it's the latest example of an increasingly pertinent lesson: While the internet has given consumers a voice, you must not confuse it for reality. Separating the signal of genuine consumer sentiment from the noise of the most terminally online is a challenge. Early feedback can often be useful: Sony Group Corp. changed the design of the original "boomerang' PlayStation 3 controller after online mockery; Nintendo itself should have responded quicker to complaints about broken original Switch controllers. But frequently, digital conversation is divorced from actual consumer behavior. Consider how, as smartphones grew larger during the 2010s, online users demanded smaller devices that could be easily used with one hand — something Steve Jobs had championed before his death. But when Apple finally responded with the iPhone Mini in 2020, those users simply didn't show up in large numbers and it was discontinued in 2023. Having coined the slogan "think different,' Apple is used to facing down fuss, from its removal of MacBook disk drives to abandoning the headphone jack. Nonetheless, in the noise there is sometimes signal — the firm ignored the iPhone 4 "Antennagate' issue for much too long and was forced into an embarrassing climbdown. Online communities are frequently too far in the weeds to represent the average consumer. On social media, advocates for preserving physical games are upset with the Switch 2's Game Key cards, which are essentially just a code to download the game from the internet. The move is good for software makers, who pay less for the memory cartridge, but in future years means Nintendo will have to keep those downloads available. Still, it's a niche issue: The average Switch 2 buyer, raised on Netflix and Spotify Technology SA, likely couldn't care less about physical ownership of most games. It's also increasingly hard to isolate genuine fan engagement from click-chasing rage-bait. Online revenue-sharing creates incentive for insincere actors to generate controversy that often matters little to the wider public. There was much ink spilled and calls for boycotts ahead of the launch of Warner Bros. Discovery's "Harry Potter" game Hogwarts Legacy, owing to author J.K. Rowling's views on gender and trans issues. None of that stopped it becoming one of the best-selling of all time. Meanwhile, right-leaning activists have led backlashes over Sony's The Last of Us Part II (decried for inclusive changes from the first game, including a lesbian protagonist and transgender character) and Ubisoft Entertainment's Assassin's Creed Shadows (due to its choice of a Black samurai hero) that have had little sales impact. Knowing who to ignore isn't just a tech issue. A growing theory among those on the political left posits that the movement's failure to stop the election of U.S. President Donald Trump could be due to ideological capture by overly active online voices on the fringes — leading politicians to focus on niche concerns of little interest to the majority of voters. Of course, online issues can end up being important. The backlash to faded social network Tumblr's decision to eliminate adult content preceded a decline in popularity that saw it sold for a fraction of the $1.1 billion it cost in 2013. The #MeToo movement emerged from testimonies shared over social media to become a worldwide phenomenon. And indeed, much of the success of the Switch itself comes from Nintendo's responding to gamers' complaints about its predecessor, the Wii U. But consumers often simply don't know what they want. Henry Ford may not have actually said that if he'd asked people what they wanted, they would have said faster horses. But it's nonetheless true that users will say one thing when their revealed preferences show otherwise. Social media is acclaimed as the "global town square' where grand ideas are debated and exchanged. But in reality, it's often more like a crowded bar — where the loudest voice usually isn't the one you should pay attention to. Gearoid Reidy is a Bloomberg Opinion columnist covering Japan and the Koreas.
Bloomberg
a day ago
- Business
- Bloomberg
America's Very Bad Mood Bodes Ill for Tone-Deaf Wall Street
American consumers aren't feeling great. They've been feeling bad about everything from prices to the stock market. They've felt so bad, in fact, that Michigan's Index of Consumer Sentiment was stuck at one of its worst readings on record for two months this spring after plunging 29% in the first four months of 2025. Over the 79 years of the survey, a drop this large this fast has almost always predicted a recession. Sentiment readings improved slightly at the start of June but still indicate Americans expect much higher prices and a much slower economy in the coming year.
Bloomberg
2 days ago
- Business
- Bloomberg
Wall Street Goes All-In on Risky Stocks
Investors are piling into speculative and volatile edges of the stock market, throwing caution to the wind as the S&P 500 Index closes in on a new all-time high. The risks remain: President Donald Trump's tariff pause is scheduled to end in two weeks, signs of a slowing economy and weakening consumer sentiment are mounting, and war is rumbling in the background. Wall Street strategists are encouraging everyone to buy stocks with strong balance sheets that can withstand any sudden shock. But investors appear to be ignoring all of it.
CTV News
2 days ago
- Business
- CTV News
H&M profit beats expectations as brand reboot starts to bear fruit
STOCKHOLM — Swedish fashion retailer H&M reported slightly stronger second-quarter profit on Thursday, an encouraging sign as CEO Daniel Erver tries to attract more shoppers with trendier clothes. H&M shares were up four per cent by 10:00 AM Greenwich Mean Time (GMT) as investors focused on the profit rather than second-quarter sales, which fell slightly more than predicted. Erver has said his focus is on profitability rather than solely sales growth. The world's second-largest listed fashion retailer also said it expected sales in June, measured in local currencies, to rise three per cent, an improvement after a six per cent fall in the same period a year ago. 'Our collections are more current, they are more on trend, more fashionable, and the customer reception has been strong throughout this quarter,' Erver said in a press conference. Erver said gingham and check patterned dresses, blouses and skirts have been especially popular this season, with the trend continuing into the autumn. Accessories sales have picked up, with social media also driving a craze for mini-accessories on bags, sneakers, and cellphones, he said. In the U.S., where H&M has around 500 stores, Erver said consumer sentiment has dropped significantly due to the 'turbulent' tariffs situation since President Donald Trump hiked duties on imports, and competitors have started raising prices as a result. H&M, which sources its products primarily from China and Bangladesh, is focused on keeping prices competitive, Erver said, as consumers are particularly price-sensitive given uncertainty around the economy in the U.S. and globally. H&M's sales were 56.7 billion Swedish crowns (US$5.99 billion) in the March to May quarter, down from 59.6 billion a year ago. Analysts polled by LSEG had forecast revenue of 57.0 billion crowns. Zara owner Inditex earlier this month also reported disappointing sales, in a sign consumers are pulling back from spending on clothes as U.S. tariffs create risks for global economic growth. H&M's second-quarter operating profit was 5.91 billion crowns, beating analysts' forecast of 5.88 billion, and the operating profit margin was 10.4 per cent, down from 11.9 per cent a year ago but still better than analysts had feared. 'The slightly better than expected margin delivery sends a positive signal to the market,' said Alphavalue analyst Jie Zhang. 'The brand upgrading strategy has started to pay off.' H&M said its higher-priced brand COS had done especially well and shoppers are opting for more medium- and high-priced items across the board, helping to boost profitability. But Erver flagged more discounting in the June to August quarter as he said summer markdowns across the market were highly competitive. Even as it reduces store numbers globally, H&M is also searching for growth in new markets with a growing middle class, with plans to open its first stores in Brazil in the second half, as well as in El Salvador and Venezuela, and to launch in Paraguay next year. (Reporting by Greta Rosen Fondahn and Helen Reid, editing by Anna Ringstrom, David Evans, Jan Harvey and Jane Merriman)
