Q. What do we know so far about the Nintendo Switch 2?

The Switch 2 was officially revealed earlier this year following months of leaks and speculation, and will mirror its highly successful predecessor in design: a hybrid, handheld console with removable controllers that can be connected to a TV via a dock. The device will be backwards compatible, meaning many games for the original Switch will be playable on the Switch 2, although some may not be supported.

No release date or pricing has been confirmed, but more is expected to be revealed during a company stream on April 2. However, Nintendo will be keen to balance the cost of hardware improvements and audience accessibility in its pricing strategy.

There is also the question of the impact of tariffs imposed by the US  - specifically on goods from China. Switch games are produced in Japan and, fortunately, Nintendo shifted some hardware manufacturing to Vietnam in 2019 in response to a prior US trade war with China. So, if no further tariffs are announced (though this is currently hard to predict), the Switch 2 could reach US consumers at its intended price point.

One feature announced by Nintendo on March 27 is the introduction of virtual game cards for both Switch and Switch 2, which will allow users to transfer digital games in the same way they may share a physical game cartridge. There has to be a ‘physical handshake’ with the console the user wishes to share with at least once, which limits the range, and the same game license cannot be played on two systems at once. Library sharing is a feature which has long been available on PC game storefront Steam, and is supported by the fact that many consumers who purchase the Switch 2 will be existing Switch owners: numbers of multiple-Switch households will sky-rocket. Plus, this lays the groundwork for a potential ‘Lite’ version of the device, without a game card slot, to be launched in the future.

Q. Why is the Switch 2 launch so significant?

Ampere expects the Switch 2 to generate the third-largest console launch of all time in terms of peak sales volume – behind fellow Nintendo devices the Nintendo DS, and the Nintendo Wii - but it will release into a wildly different market to that of its predecessors. The Switch 2 will likely face comparisons with – but not competition from – a new wave of PC handhelds that are gaining moderate traction in the market, such as the Steam Deck or Asus ROG Ally.

But the Switch 2 launch is a much bigger deal: Nintendo is responsible for a significant portion of the console gaming market, commanding a 43% share of the global active console installed base in 2022, at the Switch family peak. Ampere expects the Switch 2 to boost Nintendo’s share to 49% in 2027 – its highest since the Wii era in the early 2010s.

However, as of the end of 2024, Ampere Games data indicates that the Nintendo Switch family (including the Lite and OLED versions) is the second best-selling console family of all time, with just shy of 150m units sold. In terms of individual devices, the flagship Switch alone lands in fifth place, behind juggernauts the PlayStation 2, the Nintendo DS, the PlayStation 4 and the Nintendo Wii. The Switch family also boasts by far the largest active installed base, almost doubling that of the PlayStation 5 (PS5) family (which includes the PS5, PS5 Slim, PS5 Digital and PS5 Pro).

The reach of Nintendo devices is currently unmatched in the console space, so many will be keen to see if the Switch 2 can maintain or even expand upon this level of success.

Q. What are the opportunities for games companies on Switch 2?

The Switch 2 represents a $7bn-8bn games content opportunity over the next two years. Ampere is forecasting 31m Switch 2 devices to be in the market by the end of 2026 – based on a Q2 2025 launch - and expects the number of addressable Switch devices to peak in 2028.

Early adopters will be particularly keen to spend on new content and services, and backwards compatibility will allow games companies to cross-gen publish content to a reinvigorated, active userbase. The total audience is expected to reach almost 130m across the flagship Switch and the Switch 2 by the end of 2026, and will last for 2-3 years.

However, despite the Switch family’s success in terms of sales of devices and games, in-game monetisation remains a largely untapped opportunity on Nintendo platforms. In 2024, Nintendo commanded a mere 4% share of consumer spending on in-game and downloadable content (DLC) across the console platforms. Even a moderate increase in this form of monetisation could represent an additional $1bn-$2bn in in-game spending over the next few years.

Nintendo platforms are typically dominated by first-party content: a lack of in-game monetisation aligns strongly with its established brand image and thus consumer expectations. However, with increased third-party support from launch, Ampere expects in-game monetisation to grow throughout the Switch 2 cycle.  In a market constantly seeking a transformative growth engine but typically coming up short, combining smaller pockets of opportunity, such as this one, can amount to more sizeable commercial wins.