What just happened? Nintendo has reportedly signed with Taiwan Semiconductor Manufacturing Co. rival Samsung to build key silicon for its upcoming Switch 2. The strategic move could help the Japanese gaming giant boost production and have a better shot of hitting lofty first-year sales goals.
Sources familiar with the matter told Bloomberg that Samsung Electronics Co. is now building the custom Switch 2 processor. The chip is based on a design from Nvidia and is being manufactured using Samsung's eight nanometer process node. TSMC manufactured the processing hardware in the original Switch. Lifetime Switch sales sit at 152.12 million as of the most recent quarter, good enough for third place behind the Nintendo DS and the PlayStation 2.
At the current production rate, Samsung should have no trouble helping Nintendo ship more than 15 million units by March 2026. Should Nintendo need even more chips, Samsung could ramp production up further although at that point, other arms in the assembly process might struggle to keep up.
Nintendo managed to sell just over 15 million Switch consoles in its first year on sale, but it launched earlier in the fiscal year meaning it had more time to amass sales. The Switch 2 is scheduled to launch on June 5 and at a higher price point than before.
The shorter sales window and higher price tag might not mean much, however, when you consider other factors at play. Nintendo has spent the last eight years building a devoted Switch fan base, and many have been patiently waiting for new hardware.
That said, the scalper landscape is also way different now than it was back then. It's anyone's guess as to how readily available systems will be to actual gamers once launch date arrives. The average cost of premium games is also going up, with some titles including Mario Kart World to retail for $80.
Even with all of the variables, most expect the new Switch to become the fast-selling game console in history. Are you planning to pick one up on launch day or shortly after?