Nintendo banks on Zelda remake to boost Switch 2 sales this holiday season

Nintendo is counting on the new remake of The Legend of Zelda: Ocarina of Time, launching Thursday, to lift Switch 2 sales during the holiday period. The company reported a 52% year-over-year rise in gross profit for the second quarter, helped by strong performance of its Super Mario Galaxy movie, but hardware sales fell 34.4% compared with the previous year as many consumers purchased the console at its launch.

The original Ocarina of Time, released in 1998, is widely regarded as a classic. Mat Piscatella, executive director of games coverage at market-research firm Circana, said the updated version, which features revised controls, graphics and dialogue, is likely to attract most current Switch 2 owners. Nintendo has also introduced a limited-edition Zelda-themed Switch 2, which sold out shortly after release, and plans a Zelda orchestra concert and film for next year.

"It’s a broad opportunity to provide different experiences that connect with the players and fans, and then open the door to Zelda for new generations of players to come in," said Devon Pritchard, president of Nintendo of America.

Industry analysts note that Nintendo faces broader challenges, including a global memory shortage that has pushed the Switch 2’s price from $450 to $500 and contributed to a 9% drop in overall console spending in the United States so far this year. Video-game prices have risen to $70-$80, while the digital edition of the new Zelda title is priced at $60 and the physical copy at $70.

Joost van Dreunen, a professor at New York University’s Stern School of Business, said the competition from other major releases, such as Grand Theft Auto VI, is unlikely to affect Nintendo significantly because the two titles target different audiences. He added that Nintendo’s lower-power hardware may help it weather the memory-chip shortage better than rivals.

Nintendo has not confirmed plans for a lower-priced Switch 2 variant, nor detailed its long-term support strategy for the original Switch, which still accounts for the majority of the company’s installed base.