Core Viewpoint - The launch of Nintendo Switch 2 has exceeded expectations, achieving 6 million units sold within the first 7 weeks, marking the highest sales for any Nintendo console in history [2][4]. Sales Performance - As of the end of June, the sales target for the fiscal year 2025 (ending March 2026) is set at 15 million units, with a current achievement rate of 40% [4]. - In Japan, approximately 1 month post-launch, Switch 2 sold 1.53 million units, surpassing previous records for console sales since 1996 [5]. Financial Performance - For the fiscal quarter of April to June, Nintendo reported a net profit increase of 19% year-on-year, reaching 96 billion yen [2]. - The operating income for the same period was 572.3 billion yen, a 2.3-fold increase, with operating profit growing by 4% to 56.9 billion yen [2]. Profitability Outlook - Nintendo maintains its fiscal year 2025 performance forecast, expecting a 63% increase in operating revenue to 1.9 trillion yen, a 13% increase in operating profit to 320 billion yen, and an 8% increase in net profit to 300 billion yen [6]. - The profit contribution from Switch 2 is anticipated to be lower compared to game software, with a focus on increasing profitability through software sales in the future [6]. Market Challenges - The potential impact of U.S. tariffs poses a risk, as over 40% of Nintendo's revenue comes from the U.S. market [6]. - Price adjustments for some peripherals have already occurred, raising concerns about the impact on overall revenue, while the console price remains unchanged for now [7]. Strategic Focus - Maintaining momentum and driving sales during the year-end shopping season is identified as a critical challenge for Nintendo [8]. - The company aims to leverage the popularity of Switch 2 to boost long-term revenue through software sales, which is essential for sustaining growth [8].

Core Viewpoint - The release of the highly anticipated domestic 3A game "Mingmo: Yuanshu Zhi Yu" has faced significant criticism due to optimization issues and pricing strategies, leading to a decline in its reputation despite initial sales success [1][2][3] Sales Performance - "Mingmo" reached the second spot on Steam's best-selling games list within two hours of its release, with over 110,000 concurrent players [2] - The game received an IGN score of 8 and a Metacritic average of 75 from 50 media outlets, indicating a generally favorable reception from critics [2] - However, player reviews on Steam were predominantly negative, with 29% of players giving it a negative rating, contrasting sharply with the positive reception of "Black Myth: Wukong" [2][3] Challenges Faced - The game faced multiple issues including technical problems like lag and frame drops, content concerns regarding historical representation, and dissatisfaction with pricing strategies that varied by region [3][7] - The development company, Lingze Technology, is classified as a small to medium-sized game company, which presents challenges in funding and production capabilities for a 3A title [4][6] Development and Funding - Lingze Technology has relied on cash flow and experience gained from outsourcing projects to support the development of "Mingmo" [5][6] - The company has a history of involvement in the production of several overseas 3A titles, which has contributed to its development capabilities [5][6] Market Dynamics - The single-player game market in China is experiencing growth, with expectations for more high-quality domestic titles in the future [9][10] - The market for 3A games is projected to reach 13.3 billion yuan by 2025 and 16.9 billion yuan by 2026, with a compound annual growth rate (CAGR) of 35% anticipated [10]