Nintendo's Switch 2 boosts engagement and competitiveness via new features and third-party content
In Nintendo’s April 2 Direct presentation, the company offered the most detailed look at the Switch 2 thus far. While potential tariffs have caused pre-orders to pause in the US, costs elsewhere (e.g. £395.99 in the UK) prove it is Nintendo’s priciest device to-date but still sits comfortably below other ninth generation (PlayStation 5 and Xbox Series) consoles. On the hardware front, it is Nintendo’s most powerful console, with 1080p handheld and 4k docked resolution, up to 120fps, and a 7.9-inch LCD screen; with added features like mouse control and a chat function. A more powerful and functional console has given Nintendo free reign to step up its content strategy: The Switch 2 will see a greater focus on third-party content – both exclusives and ports – as well as more experiences from its flagship first-party franchises.
Improved functionalities allow the Switch 2 to take on competitors more effectively
The original Nintendo Switch is the most successful hybrid console to-date: By the end of 2024, the family had sold over 149m consoles in its lifetime. This sparked a handheld trend, with several PC gaming handhelds and Sony’s PlayStation Portal launching in recent years. While these devices do not present a substantial threat to the Switch, Nintendo has introduced a unique feature to the Switch 2 to further level itself with its competitors: mouse functionality. The feature significantly improves quality of life when playing games originally designed for PCs (like Sid Meier's Civilization 7) or shooter titles (Metroid Prime 4: Beyond), as well as opening the door to unique gameplay opportunities.
The Switch 2 will also introduce GameChat, a chat feature that will bring the device’s social capabilities more in line with competitors in the console space. Nintendo’s brand has long been associated with social play within the home, and until now the Switch has neglected its online features. In doing so, it has sometimes alienated time-poor fans – such as working adults – and neglected to fully address shifting social trends among young people. Improving chat capabilities ensures the Switch 2 will continue to play a role in social gaming and prevents users from seeking these experiences elsewhere. GameChat will be free until the end of March 2026, afterwards becoming exclusive to Nintendo Switch Online. This is part of the company’s push to drive more users towards the subscription model, an opportunity that is not fully realised within Nintendo at this time.
Keeping users engaged with the Nintendo ecosystem through third-party content
The Switch marked a shift in Nintendo’s content strategy: The company opened its doors to more third-party content than ever before but still lacked blockbuster titles due to the device’s limited hardware capabilities. With Nintendo’s most powerful hardware yet, this strategy can be fully realised on the Switch 2. There is a clear focus on porting existing titles that the original Switch was not powerful enough to run, including Cyberpunk 2077, Elden Ring, and Final Fantasy 7 Remake. A broader content offering will bring Nintendo closer to other console players who have traditionally been seen as indirect competition. While many players may own these ports on other devices, the availability of third-party titles encourages users to stay and spend more on Nintendo’s platform.
At a time when many developers – and platform holders - are moving away from platform exclusivity, Nintendo remains steadfast in its approach. Aside from the expected first-party exclusives, it has partnered with Elden Ring developer FromSoftware to launch The Duskbloods, a soulslike Switch 2 exclusive. This partnership addresses one of the key challenges Nintendo has faced when expanding its audience. Many Nintendo exclusives share key characteristics: family friendly, accessible, with a bright colour palette. While this appeases existing fans and younger audiences, it does nothing for gamers seeking mature and difficult experiences. By broadening the scope of its exclusive content, the Switch 2 can now expand its audience beyond the current Switch user base.
Nintendo doubles down on its dedication to franchises
For first-party offerings, the Switch 2 has taken a two-pronged approach: console exclusives and editions. Nintendo revealed four Switch 2 exclusives in its April direct, most importantly Mario Kart World as a launch title, and Donkey Kong Bananza which is set to release in July 2025. Mario Kart 8 Deluxe, a flagship Switch re-release of a Wii U title, went on to sell over 67m units on the Switch (as of 31 December 2024), and the title has ranked in the top 10 US eShop charts for 94% of weeks since early 2023. Its successor is expected to be a huge driver of Switch 2 hardware sales, primarily from original Switch users looking to upgrade.
Donkey Kong Bananza is the first fully 3D title in the franchise since the 1999’s Donkey Kong 64, marking a new era for the intellectual property (IP). In focusing on this lesser-known IP for the Switch 2 launch window, Nintendo hopes to draw attention to the franchise, raising its awareness and value among consumers. Franchises are extremely valuable in the current games market, particularly with the recent focus on cross-media content and collaborations. With the opening of Donkey Kong Country, an expansion to Super Nintendo World in Universal Studios Japan and Universal Orlando Resort, it comes as no surprise that Donkey Kong was chosen for Nintendo’s next major reboot.
Nintendo explore subsidised digital titles to combat rising costs and looming tariffs
As a platform, Nintendo has fallen behind its competitors in terms of digital full game uptake. While Sony and Microsoft saw digital sales volumes overtake physical by 2019, Nintendo did not see this trend realised until 2023, and even then, the split was almost 50-50. In a bid to get consumers on board with digital media, Nintendo originally intended to reduce the price of digital Switch 2 games (Mario Kart World was listed as costing £66.99 digitally and £74.99 physically in the UK), but the official pricing has now been removed from their website. By encouraging this shift to digital downloads - which will likely be accelerated even further by US tariffs - Nintendo can improve its profit margins compared to physical media and keep users spending on its own digital storefront, the Nintendo eShop.
The Switch 2 game prices are higher than many anticipated, though cost is expected to vary depending on the game, with Mario Kart World’s suggested retail price set to $79.99, a $20 rise from its predecessor Mario Kart 8 Deluxe ($59.99).The US tariffs are likely not the main driver behind these price points; instead, factors such as more costly, higher-capacity game cards, as well as a shift towards higher content prices across the games industry more broadly, are probably fuelling this strategy. These prices will become standard across gaming in the years to come, particularly for first-party titles.

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