Core Insights - Nintendo's latest gaming console, Switch 2, achieved a record launch performance with 5.4 million units sold in its first month, surpassing previous consoles [1] - The high pricing of Switch 2 is seen as a significant barrier to sales, acknowledged by Nintendo's president Shuntaro Furukawa [1] - The introduction of a USB-C interface with encryption authentication limits compatibility with third-party accessories, causing user complaints about charging and video output issues [3][5] Sales Performance - Switch 2's first-month sales reached 5.4 million units, marking the best opening for any Nintendo console [1] - Nintendo's overall sales for the fiscal year 2024 dropped by 30.3% to 1.1649 trillion yen, with net profit decreasing by 43.2% to 278.8 billion yen [10] Accessory Compatibility - The encryption mechanism in Switch 2's USB-C interface restricts third-party accessory compatibility, leading to user frustrations [3][5] - Users face high repair costs of approximately $180 for official support, prompting interest in third-party solutions that may not be viable due to Nintendo's encryption [5] Business Strategy - Nintendo appears to be developing a "Made For Nintendo Switch" ecosystem similar to Apple's MFi certification, which could enhance revenue from authorized accessories [7][10] - The company is diversifying its revenue streams beyond console sales, focusing on mobile games and theme parks to mitigate reliance on hardware sales [10][12] Future Implications - The establishment of a proprietary accessory ecosystem may lead to increased costs for consumers, as both the console and compatible accessories are expected to be priced higher [13]