3 6 Ke·2025-06-05 04:13Core Viewpoint - Nintendo's release of the "Nintendo Switch 2" on June 5 features a specially developed AI chip by Nvidia, which is expected to address the challenges faced by previous successor models of Nintendo's gaming consoles [2][5]. Group 1: Product Features and Technology - The new Switch 2 utilizes Nvidia's advanced AI chip, which is described as a "technological miracle" and is capable of running complex games [2][5]. - The chip supports Nvidia's proprietary technology "DLSS" (Deep Learning Super Sampling), allowing for smoother operation of graphically demanding software [6]. - The Switch 2 can run popular games such as "Street Fighter 6" and "Elden Ring," which were not available on previous models, indicating a significant enhancement in gaming capabilities [6]. Group 2: Historical Context and Challenges - Nintendo has struggled with the successor models of its popular consoles like the DS and Wii, with past models failing to surpass the sales of their predecessors [7][9]. - The 3DS sold 75.94 million units, only about half of the DS's sales, while the Wii U sold 13.56 million units, just one-seventh of the Wii's sales [9]. - The failures of previous models were attributed to an inability to fully leverage new features and complexities that deterred software developers [9]. Group 3: Market Position and Future Strategy - Nvidia's market capitalization is approximately $3.5 trillion, significantly higher than Nintendo's $150 billion, highlighting the importance of Nintendo as a client for Nvidia [5]. - Nintendo's revenue model heavily relies on its proprietary software, which accounted for 73% of sales in the 2024 fiscal year, down 8.2 percentage points from the previous year [10]. - The company aims to diversify its revenue streams by attracting third-party developers to create software for the Switch 2, which is seen as crucial for mitigating risks associated with reliance on its own software [10].