The news: On Thursday, Nintendo released the Switch 2, ​​its first new console since the Nintendo Switch was launched in 2017.

• The handheld device comes with upgraded specs, social gaming features, and bundles with exclusive titles like Mario Kart World and Donkey Kong Bananza.
• The console has 256 GB of storage, up from its predecessor’s 32 GB, and a custom Nvidia processor.
• It also includes GameChat, a feature that combines voice and video and lets up to 12 people chat while playing games.

In addition, the gaming giant incorporated rewind abilities and CRT control as an expansion pack for paid Nintendo Switch Online subscribers.

Playing the field: The Switch 2’s GameChat social gaming features could tap into a key user interest, encouraging gamers to upgrade their console and positioning the device as a must-have for social play.

• More than two-thirds (69%) of US and UK gamers between the ages of 18 and 24 said the ability to play with friends is important, per Attest.
• 59% of Gen Zers said facing off with other gamers and cooperative gaming opportunities are their top motivation, per Newzoo.

Tariff challenges: While the consoles are in many consumers’ hands, Nintendo briefly hit pause on US preorders after President Donald Trump ordered 30% tariffs on China, where a substantial amount of its manufacturing is done.

The company also left the door open for tariff-led price hikes—the Switch 2 currently costs $449. But a price increase may not shake off brand loyalists: One-third (32%) of Gen Zers typically play games on a Nintendo Switch, per Collage Group.

Our take: With a growing package of subscription perks and social hooks like GameChat, Nintendo may be taking a page from Apple’s playbook by turning its hardware into a recurring revenue engine. The Switch 2 could be a sticky ecosystem for Nintendo, even if the price goes up.