Nintendo Forecasts 15 Million Switch 2 Sales, Sees 13% Profit Rise Despite Tariff Risks

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Nintendo expects to sell 15 million units of its upcoming Switch 2 console in the fiscal year ending March, projecting a 13% increase in operating profit to 320 billion yen ($2.22 billion) amid ongoing global trade tensions.

Key Highlights:

  • Switch 2 Launch: The successor to the original Switch, which sold over 150 million units since 2017, will debut on June 5. It will feature improved graphics and a larger screen.

  • Tariff Concerns: Nintendo paused U.S. pre-orders temporarily due to uncertainty over President Trump’s tariffs, but resumed after deciding to keep the U.S. retail price at $449.99.

  • Profit Outlook: Although Nintendo expects a profit hit in the tens of billions of yen from tariffs, it anticipates a solid rebound from last year’s 46.6% drop in operating profit to 282.5 billion yen.

  • Software Expectations: Nintendo forecasts 45 million Switch 2 software sales, alongside 4.5 million units of the original Switch and 105 million software units for that aging system.

  • Launch Titles: Switch 2 will debut with anticipated games including “Mario Kart World”, expected to boost early adoption.

Market Context:

  • Analysts like Serkan Toto of Kantan Games believe Nintendo’s forecast is conservative, with potential demand pushing sales closer to 20 million units.

  • The Switch 2 arrives as competitors Sony and Microsoft increase their console prices, potentially making Nintendo’s launch more appealing.

Despite ongoing trade war risks and pricing sensitivities, early signs suggest robust demand for Nintendo’s new hardware, which will be crucial for maintaining momentum in a business still heavily reliant on console sales.

India Grants Conditional Approval for Starlink’s Satellite Internet Services

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India has granted conditional approval to SpaceX’s Starlink to begin offering satellite-based internet services in the country, according to a report by CNBC-TV18 on Thursday.

Key Developments:

  • The conditional nod allows Starlink to progress toward commercial operations, pending fulfillment of regulatory requirements.

  • Starlink had been awaiting licenses since 2022, with delays linked to national security concerns and policy disagreements over satellite spectrum allocation.

  • The decision follows Starlink’s March agreements with major Indian telecom providers: Bharti Airtel, Vodafone Idea, and Reliance Jio.

Background:

  • A policy tussle between Elon Musk and Mukesh Ambani over satellite spectrum allocation had stalled progress. The Indian government ultimately supported the open allocation model advocated by Musk.

  • India, the world’s most populous nation, presents a massive market opportunity for expanding high-speed connectivity, especially in rural and remote areas.

The conditional approval paves the way for Starlink to compete with Amazon’s Project Kuiper and OneWeb (backed by Bharti) in a race to dominate India’s satellite broadband future.

Google Cuts 200 Jobs in Global Business Unit Amid AI-Focused Shift

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Google has laid off approximately 200 employees from its global business organization, which oversees sales and partnerships, as the tech giant continues to reallocate resources toward artificial intelligence and data centers, The Information reported Wednesday.

Key Highlights:

  • The cuts were confirmed by Google, which said the changes aim to boost collaboration and enhance customer service effectiveness.

  • This follows earlier layoffs in Google’s platforms and devices division, impacting teams responsible for Android, Pixel, and Chrome.

  • Google-parent Alphabet previously cut 12,000 jobs in January 2023, about 6% of its global workforce.

Broader Tech Industry Context:

Major tech companies are trimming headcount in legacy areas while aggressively investing in AI capabilities:

  • Meta laid off 5% of its “lowest performers” while accelerating AI hiring.

  • Microsoft let go of 650 staff from its Xbox division last September.

  • Amazon and Apple have also enacted selective layoffs across various departments.

These actions signal a strategic pivot across the tech industry to optimize cost structures and prioritize innovation in AI, cloud infrastructure, and machine learning tools.