Group 1 - Nintendo's stock price has been continuously rising, reaching a historic high with a market value surpassing $100 billion, making it the seventh largest company in Japan [1] - The upcoming launch of Switch 2 is a significant factor boosting investor confidence and driving the company's market value [1][3] - The pre-order demand for Switch 2 is strong, with 2.2 million pre-orders in Japan and high interest in the domestic market [3] Group 2 - Switch 2 features significant upgrades, including a larger screen size of 7.9 inches, 1080P resolution, 120Hz refresh rate, and 4K output in docked mode [3] - The pricing of Switch 2 has increased by approximately 50% compared to the original Switch, with the new model priced at around $3250 RMB for the US version [3] - Despite the excitement surrounding Switch 2, Nintendo faces challenges from competitors like Sony's PS5 and Microsoft's Xbox, as well as declining sales figures for its current hardware and games [4] Group 3 - Nintendo's financial performance has shown a decline, with a 31.4% drop in total sales revenue and a 46.7% decrease in operating profit year-over-year [4] - The company sold 9.54 million Switch units in the first nine months of the fiscal year, a decrease of 30.6% compared to the previous year [4] - Industry experts suggest that Nintendo must adapt to new technologies and changing consumer trends to maintain its market position and drive innovation [5]

Core Viewpoint - Nintendo's new console, Switch 2, is set to launch globally on June 5, 2024, but has received mixed reactions from players due to perceived limited innovation and controversial pricing strategies [1][5]. Pricing Strategy - The domestic version of Switch 2 is priced at 49,980 yen (approximately 2,473 RMB), while the multilingual version costs 69,980 yen (approximately 3,462 RMB), leading to dissatisfaction among players who feel penalized for language limitations [1][5]. Financial Performance - Nintendo's financial report for the first three quarters of the 2025 fiscal year (April to December 2024) shows a 31.4% year-on-year decline in sales to 956.2 billion yen (approximately 47.25 billion RMB) and a 46.7% drop in operating profit to 247.5 billion yen (approximately 12.23 billion RMB) [5][12]. - Net profit also fell by 41.9% to 237.1 billion yen (approximately 11.72 billion RMB) [5][12]. Hardware Upgrades - Switch 2 features a larger 7.9-inch 1080P screen, HDR support, and 120FPS capability, with a 4K resolution in docked mode, but is seen as merely catching up with competitors [7][9]. - New features include a "C button" for GameChat and a mouse mode for the Joy-Con 2, which aims to enhance the gaming experience [7][9]. Game Library and Market Position - A range of third-party games, including major titles like "Elden Ring" and "Cyberpunk 2077," will be available on Switch 2, but the upgrades are viewed as insufficient to significantly boost sales [9][10]. - The competition in the gaming console market remains fierce, with Nintendo needing to differentiate itself through unique gameplay experiences rather than just hardware performance [9][14]. Future Outlook - Analysts express skepticism about whether Switch 2 can revitalize Nintendo's performance, emphasizing the need for blockbuster games to drive sales [14][15]. - The gaming market is experiencing a contraction globally, but the Chinese market is showing growth, indicating a potential area for Nintendo to explore [13].