Afp Business Asia

US President Donald Trump and Chinese leader Xi Jinping spoke Thursday, with both sides agreeing to talks to prevent an all-out trade war over tariffs and global rare earth supplies.Trump said the call reached a “very positive conclusion” and that they agreed to meet in person — but Beijing issued a more muted readout saying that Xi spoke of a need to “correct the course” of ties.The call — the first to be publicly announced since Trump returned to power in January — comes after Beijing and Washington accused each other of jeopardizing a trade war truce agreed last month in Geneva.Trump said a high-level US trade team including his treasury secretary, commerce secretary and US trade representative would meet Chinese officials soon.”The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries,” Trump said on Truth Social.”President Xi graciously invited the First Lady and me to visit China, and I reciprocated. As Presidents of two Great Nations, this is something that we both look forward to doing,” he added.Trump said they would announce the time and place later.But the leaders did not discuss Russia’s invasion of Ukraine, Trump said, despite long-standing US hopes that Beijing could exert influence over Moscow to end the war.”The conversation was focused almost entirely on TRADE,” said Trump, adding that they hoped to have resolved issues over crucial rare earth minerals used in tech products.Relations between superpower rivals Beijing and Washington have been fraught since April, when Trump introduced sweeping worldwide tariffs that targeted China most heavily.At one point the United States hit China with additional levies of 145 percent on its goods as both sides engaged in tit-for-tat escalation. China’s countermeasures on US goods reached 125 percent.Trump had described Xi as recently as Wednesday as “extremely hard to make a deal with.” Chinese state media said Trump had requested the call. There was no immediate confirmation from the White House.- ‘Correcting the course’ -In its more restrained readout, Beijing said that relations needed more work.”Correcting the course of the big ship of Sino-US relations requires us to steer well and set the direction, especially to eliminate all kinds of interference and even destruction, which is particularly important,” Xi told Trump, according to state news agency Xinhua. The agency reported that the pair discussed the self-ruled democratic island of Taiwan, which China claims as part of its territory and has threatened to seize by force. Xi warned his US counterpart that Washington should handle the issue “with caution” to avoid Taiwanese separatists “dragging China and the United States into the danger of conflict,” Xinhua said. But Xi also extended Trump a welcome to return to China, according to the agency, following an earlier trip during his first term in 2017.Until Thursday, the two leaders had not had any confirmed contact since the Republican returned to power in January, despite frequent claims by the US president that such a call was imminent. Beijing and Washington agreed in Geneva last month to slash their staggeringly high tariffs for 90 days, but the two sides have since traded blame for derailing the deal.Trump argued last week that China had “totally violated” the terms, without providing further details.China’s commerce ministry hit back by saying the Trump administration had introduced “discriminatory restrictive measures,” including revoking some Chinese student visas in the United States.Trump has separately ramped up tensions with other trade partners, including the European Union, by vowing to double global tariffs on steel and aluminum to 50 percent from Wednesday.

Wall Street stocks bounced higher Thursday after US President Donald Trump and Chinese leader Xi Jinping spoke amid their trade war, while the euro got a boost from the European Central Bank signalling an end to its rate-cut cycle.Wall Street’s major indices recovered from earlier losses after Trump posted that the call was positive.”The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries,” Trump said on Truth Social, adding that US and Chinese trade teams would hold a new meeting “shortly”.The call follows officials from the world’s two biggest economies accusing each other of jeopardising a trade war truce agreed last month in Geneva. City Index and FOREX.com analyst Fawad Razaqzada said “the markets were hoping that the direct line between Washington and Beijing could ease trade tensions, even if temporarily”.While he said that appears to have been the case, he added “it is super important that the Trump-Xi call now leads to some concrete movement”.After his return to the White House Trump launched a tariffs blitz, introducing a 10 percent minimum tariff and higher rates on many countries, with China subject to the highest rates.Some of the higher rates have been suspended as negotiations are under way.European stock markets closed mixed even though the ECB cut its key deposit rate a quarter point to two percent, as expected.It was its eighth reduction since June last year when it began lowering borrowing costs.But ECB President Christine Lagarde stated the central bank is “getting to the end” of the rate-cutting cycle, as inflation has largely dropped to its two percent target in the 20-nation currency bloc.That sent the euro surging against the dollar and European stocks gave up earlier gains.The ECB’s series of cuts stands in contrast to the US Federal Reserve, which has kept rates on hold recently amid fears that Trump’s levies could stoke inflation in the world’s top economy.Investors are now looking to the release on Friday of US non-farm payrolls data, which the Fed uses to help shape monetary policy.Other data released this week has been mixed. April jobs openings data beat expectations, but according to payroll firm ADP private-sector jobs rose by only 37,000 last month.This was a sharp slowdown from April’s 60,000 and less than a third of the amount forecast in a Bloomberg survey.Another survey showed activity in the US services sector contracted in May for the first time since June last year.The readings stoked concerns that the world’s number one economy was stuttering, with the Fed’s closely watched “Beige Book” study noting that “economic activity has declined slightly”.The readings ramped up bets on a Fed cut, with markets pricing in two by the end of the year, starting in September. Still, there is some concern that Trump’s tariff blitz will ramp up inflation, which could put pressure on the US central bank to keep borrowing costs elevated.- Key figures at around 1530 GMT -New York – Dow: UP 0.3 percent at 42,559.64 pointsNew York – S&P 500: UP 0.4 percent at 5,996.55New York – Nasdaq Composite: UP 0.7 percent at 19,602.62Paris – CAC 40: DOWN 0.2 percent at 7,790.27 (close) Frankfurt – DAX: UP 0.2 percent at 24,323.58 (close)London – FTSE 100: UP 0.1 percent at 8,811.04 (close)Tokyo – Nikkei 225: DOWN 0.5 percent at 37,554.49 (close)Hong Kong – Hang Seng Index: UP 1.1 percent at 23,906.97 (close)Shanghai – Composite: UP 0.2 percent at 3,384.10 (close)Euro/dollar: UP at $1.1448 from $1.1417 on WednesdayPound/dollar: UP at $1.3593 from $1.3548Dollar/yen: UP at 143.70 yen from 142.86 yenEuro/pound: DOWN at 84.23 pence from 84.26 penceBrent North Sea Crude: UP 1.1 percent at $65.57 per barrelWest Texas Intermediate: UP 1.2 percent at $63.57 per barrelburs-rl/phz

Gamers finally got their hands on Nintendo’s new Switch 2 on Thursday, the console that could score record early sales for the Japanese “Super Mario” creator.The device, which features a bigger screen and more processing power, is an upgrade to the Switch that became a global phenomenon with hit games such as “Animal Crossing”.The original Switch has sold 152 million units since its 2017 release, making it the third-best-selling console ever.Consoles were still on the shelves at a central Paris electronics store by early afternoon Thursday, defying concerns of stock running out.”I’m not surprised, people planned ahead with pre-orders,” said Benoit Martins, 29, a construction project manager.He said he had been waiting “for months” to pick up his own new console — but did not turn out at midnight to secure it at the moment of release, as several dozen French fans had.In Tokyo, there had been no Switch 2’s available without preorders when stores opened Thursday morning.Lei Wang, 24, a recent graduate from China, said he had been “shocked” to win a preorder lottery as he queued to collect his device.”It’s basically just me who got picked… so I don’t really want to say anything” to less lucky friends, he said with a laugh.Shinichi Sekiguchi, 31, said he was so excited he forgot to bring his phone, while 33-year-old Kuro said she had taken a day off work to use her new console.”The improved graphics and the ability to play with a larger group — I think that’s a big deal,” she said.Serkan Toto from Tokyo consultancy Kantan Games said he “would not be surprised to see Switch 2 breaking sales records in the next weeks and months”.Nintendo’s online store had 2.2 million pre-order applications for the Switch 2 in Japan — an “insane number the industry has never seen before”, Toto told AFP.- Worth the price? -The Switch 2 has eight times the memory of the first Switch and its controllers, which attach with magnets, can also be used like a desktop computer mouse.New functions allowing users to chat as they play online and temporarily share games with friends could also be a big draw for young audiences used to watching game streamers.However, Nintendo has its work cut out to match the overall success of the original.Challenges include uncertainty over US trade tariffs and whether it can convince enough people to pay the high price for its new device.The Switch 2 costs $449.99 in the United States, more than the original’s launch price of $299.99. Both are hybrid consoles that can connect to a TV or be played on the go.New Switch 2 games such as “Donkey Kong Bananza” and “Mario Kart World” — which allows players to go exploring off-grid — are also more expensive than existing titles.”After playing it, I think it’s worth the price,” Steven Paterno, a 24-year-old aspiring filmmaker, told AFP at a Nintendo launch event in New York City.He had been waiting outside the Rockefeller Center’s Nintendo store for a month and a half, part of a group of around 20 die-hard fans desperate to be first in line.”I loved the original Switch, but I had to admit the Switch 2 really tops it,” Paterno said.- Cancelled pre-orders -Retailers in the United States, Europe and other major markets are gearing up for a rush of excited fans, with some stores opening at midnight to welcome them.”I’m very excited to pick it up at midnight,” 22-year-old graduate Angel Caceres said at the New York launch event.”I’m going to be very tired after that.”Supply pressures have forced some retailers to cancel orders, with Britain’s Game saying it is “working hard to reinstate as many affected pre-orders as possible”.Nintendo forecasts it will ship 15 million Switch 2 consoles in the current financial year, roughly equal to the original console in the same period after its release.The Switch 2 “is priced relatively high” compared with its predecessor, the company’s president Shuntaro Furukawa said at a financial results briefing in May.So it “will not be easy” to keep initial momentum going, he warned.While Nintendo is diversifying into theme parks and hit movies, around 90 percent of its revenue still comes from the Switch business, analysts say.cg-tu-kaf-mng-tgb/giv

A Japanese startup will attempt a tricky lunar touchdown on Friday with an unmanned lander named Resilience, two years after its first try which crashed onto the Moon’s surface.If successful, it will be only the third private mission to the Earth’s rocky natural satellite ever completed, and the first by a company based outside the United States.The startup, ispace, says touchdown is expected at 4:17 am Japan time on Friday (1917 GMT Thursday) with the potentially nail-biting attempt streamed on its website.Resilience is “ready to attempt a historic landing on the Moon” and “we are confident in our preparations for success”, ispace CEO Takeshi Hakamada said last week.”We have leveraged the operational experience gained in Mission 1 and during this current voyage to the Moon,” he said in a statement.Only five nations have soft-landed spacecraft on the Moon — the Soviet Union, the United States, China, India and Japan.And now companies are vying to offer cheaper and more frequent space exploration opportunities than governments.Last year, the Houston-based Intuitive Machines became the first private enterprise to touch down on the Moon.Although its uncrewed craft landed at the wrong angle, it was still able to complete tests and send photos.Then in March this year, Firefly Aerospace’s Blue Ghost — launched on the same SpaceX rocket as ispace’s Resilience — aced its lunar landing attempt.Despite their rocket ride-share, Resilience took longer to reach the Moon than Blue Ghost, and ispace is now hoping for its own moment of glory, after its first mission resulted in an unsalvageable “hard landing” in 2023.Landing on the Moon is highly challenging as spacecraft must rely on precisely controlled thruster burning to slow their descent.Intuitive Machines’ second attempt at a Moon landing ended in disappointment in late March. Its spacecraft Athena, designed to touch down on a spot called the Mons Mouton plateau — closer to the lunar south pole than any previous mission — tipped over and was unable to recharge its solar-powered batteries.Meanwhile another Japanese startup, Space One, has been trying to become the country’s first private firm to put a satellite into orbit.Its latest rocket launch attempt in December blasted off but was later seen spiralling downwards in the distance as the company said the launch had to be terminated.

Shares enjoyed a healthy run Thursday after soft US economic data boosted expectations the Federal Reserve will soon cut interest rates and put the focus on key jobs figures coming at the end of the week.Investors were also keeping track of developments in Donald Trump’s trade war and signs of movement on possible talks between the US president and his Chinese counterpart Xi Jinping.Wall Street provided an uninspiring lead as a report by payroll firm ADP showed private-sector jobs rose by 37,000 last month, a sharp slowdown from April’s 60,000 and less than a third of what was forecast in a Bloomberg survey.Another survey showed activity in the services sector contracted in May for the first time since June last year.The readings stoked concerns that the world’s number one economy was stuttering, with the Fed’s closely watched “Beige Book” study noting that “economic activity has declined slightly”.It flagged household and business caution caused by slower hiring and heightened uncertainty surrounding Trump’s policies.However, the readings ramped up bets on a Fed cut, with markets pricing in two by the end of the year, with the first in September. Eyes are now on the non-farm payrolls release on Friday, which the central bank uses to help shape monetary policy.Still, there is some concern that the US president’s tariff blitz will ramp up inflation, which could put pressure on the Fed to keep borrowing costs elevated.Most of Asia rose, with Hong Kong, Shanghai, Singapore, Taipei, Mumbai, Bangkok and Wellington up with London, Paris and Frankfurt.Seoul rallied more than one percent on continued excitement after the election of Lee Jae-myung as South Korea’s new president. The vote ended a six-month power vacuum sparked by the impeachment of predecessor Yoon Suk Yeol for a calamitous martial law attempt.The won rose around 0.3 percent, building on a recent run-up in the currency against the dollar.Jakarta advanced as Indonesia’s government began rolling out a $1.5 billion stimulus package after Southeast Asia’s biggest economy saw its slowest growth in more than three years in the first quarter.Tokyo fell following another weak sale of long-term Japanese government bonds, which added to recent concerns about the global debt market. The soft demand also stoked speculation that the government could scale back its auctions of long-term debt in a bid to boost demand.Investors are awaiting news of talks between Trump and Xi, with the White House saying they could take place this week.But while tariffs remain a millstone around investors’ necks, IG’s chief market analyst Chris Beauchamp said traders seemed less concerned than they were after the US president’s April 2 “Liberation Day” fireworks.”With markets still rising, the overall view appears to still be that the US is no longer serious about imposing tariffs at the levels seen in April,” he wrote in a commentary.”President Trump appears fixated on a call with China’s president that might help to move the situation forward, but Beijing remains wary of committing itself to any deal.”This does leave markets open to another sudden shock, which might replicate some of the volatility seen in April. But that manic period appears to have dissuaded the administration from further major tariff announcements.”- Key figures at around 0810 GMT -Tokyo – Nikkei 225: DOWN 0.5 percent at 37,554.49 (close)Hong Kong – Hang Seng Index: UP 1.1 percent at 23,906.97 (close)Shanghai – Composite: UP 0.2 percent at 3,384.10 (close)London – FTSE 100: UP 0.1 percent at 8,807.05 Euro/dollar: DOWN at $1.1415 from $1.1417 on WednesdayPound/dollar: UP at $1.3566 from $1.3548Dollar/yen: UP at 143.29 yen from 142.86 yenEuro/pound: DOWN at 84.15 pence from 84.26 penceWest Texas Intermediate: UP 0.3 percent at $63.03 per barrelBrent North Sea Crude: UP 0.4 percent at $65.10 per barrelNew York – Dow: DOWN 0.2 percent at 42,427.74 (close)

The Indonesian government is allowing environmental damage including deforestation and violations against Indigenous people to go unchecked around a multi-billion dollar industrial park on a once-pristine eastern island, a report said Thursday.Indonesia is both the world’s largest nickel producer, and home to the biggest-known reserves, and a 2020 export ban has spurred a domestic industrial boom.Operations have grown around Weda Bay, the world’s largest nickel mine by production, on Halmahera island as Indonesia exploits the metal reserves used in everything from electric vehicle batteries to stainless steel.Climate Rights International (CRI) said companies had caused a spike in air and water pollution and deforestation around the industrial park, accusing the government of ignoring their conduct.”The Indonesian government is giving a green light to corporate practices that prioritise profits over the rights of local communities and the environment,” Krista Shennum, researcher at Climate Rights International, told AFP.”The Indonesian government should immediately hold companies accountable. This could include civil penalties, criminal prosecutions, or rescinding permits.”Much of the park’s nickel is sourced by Weda Bay Nickel (WBN), a joint venture of Indonesian mining firm Antam and Singapore-based Strand Minerals, with shares divided between French mining giant Eramet and Chinese steel major Tsingshan. An AFP report last week detailed how the home of the nomadic Hongana Manyawa tribe was being eaten away by the world’s largest nickel mine, with members issuing a call for nickel companies to leave their tribal lands alone.- ‘Criminalisation, harassment’ -Locals have reported a rise in air pollution from nickel processing smelters and rivers polluted by nickel tailings in soil brought down by heavy rain.Water tests by Indonesian NGOs AEER, JATAM, and Nexus3 Foundation in 2023 and 2024 “revealed dangerously high levels of nickel and hexavalent chromium, among other pollutants”, the report said.”(Companies) are failing local communities by not making information about the safety of important drinking water sources publicly available and accessible,” said Shennum.Both WBN and Eramet told AFP last week they work to minimise impacts on the environment, including conducting water tests.CRI also said Indonesian and foreign companies in coordination with police and military personnel had “engaged in land grabbing, coercion and intimidation” of Indigenous peoples and other communities.Local activists and students opposing the industrial park have “faced criminalisation, harassment and smear campaigns”, the report said.Weda Bay Nickel and the Indonesian government did not immediately respond to a request for comment.But Indonesia’s energy ministry told AFP last week it was committed to “protecting the rights of Indigenous peoples and ensuring that mining activities do not damage their lives and environment”.

Hundreds of protesting Myanmar tribespeople march up a hillside to a cavernous facility where a Chinese joint venture’s giant milling machines stand ready to grind up the rocks of their ancestral homeland for lead ore.Demand for the heavy metal is forecast to rise, driven by its use in the batteries needed for the global energy transition.But its extraction can pollute the environment and the Pradawng tribespeople carry banners reading: “No transparency, no responsibility”.”We don’t have any plan to exchange this inheritance from our ancestors for money or riches,” said 24-year-old protest leader Khun Khine Min Naing.”This land is the dignity of our tribe.”Since a 2021 coup, Myanmar has been riven by civil war and shattered into a patchwork of loosely governed territories ripe for exploitation by unregulated miners.And neighbouring China is keen to scoop up the minerals and metals Myanmar can supply.The Pradawng — a little-known subtribe of the Kayan ethnic group — claim around 3,000 members and a 381-year lineage in Shan state, in Myanmar’s east.They say Myanmar firm Four Star Company and a Chinese partner have planned a mega-project mining lead upriver from their village, Thi Kyeik, in Pekon township.Heavy machinery began to be installed in February, but the tribe say they were not consulted on the scheme and fear it will taint the area with hazardous chemicals.Locals have blockaded roads to turn back vehicles, and threatened to seize mining equipment, defying possible violent backlash in a country where the right to assemble often depends on the whims of armed guards.”We are only asking for Indigenous rights that we should own,” Khun Khine Min Naing told AFP, demanding mine plans are rolled back until the war is over and they can be scrutinised by a civilian government.- Natural resources -Lead is a toxic metal, most commonly mined for use in lead-acid batteries.Extracting it can pollute local soil and water supplies, with children particularly vulnerable to exposure, according to the World Health Organization (WHO).”We don’t want to leave this land environmentally damaged for the next generation,” said Khun Khine Min Naing. “We don’t want to be regarded as historical criminals.”The Pradawng say Four Star Company has been active locally for two decades and is linked to the local ruling Kayan New Land Party, whose armed wing maintains a ceasefire with Myanmar’s military.The firm could not be reached for comment.Their Chinese partner company is harder to identify, and locals say its involvement was only revealed when its representatives attended a joint event with Four Star Company intended to address community backlash.China shares a 2,100-kilometre (1,300-mile) border with Myanmar and has long been a lucrative market for the country’s natural resources, including jade, gemstones, teak logs and metal ores.It accounts for nearly 98 percent of Myanmar’s lead ore and concentrate exports, according to 2023 World Bank data.The figures say 49,000 tonnes worth $20 million were exported to China that year, but that is likely far short of the true amount.The lack of a central authority means tracking the real scale of mining operations across Myanmar is difficult.But satellite imagery analysis of one hotspot on the Myanmar-China border by the Britain-based Centre for Information Resilience showed the expanse of mining operations there nearly doubled in size between 2018 and 2024.- ‘Only stones for our children’ -Rechargeable lead-acid batteries are widely used in vehicles, including EVs where they provide auxiliary power, as well as for storing power generated by renewable technologies such as wind and solar.The metal — identified by the WHO as “one of 10 chemicals of major public health concern” — sells for around $2,000 per refined tonne on the global market.But the Pradawng people suspect they will see none of the profits.Along with health risks, locals fear environmental damage, with villagers saying increased mining in recent years has led to more flooding and mudslides that carried off entire homes.Mu Ju July, 19, ekes out a living picking through mine slag heaps for scraps of lead to sell.A flurry of prospecting could be a windfall for her, but she worries it will squander the livelihoods and homes of future generations.”If we allow them, we will be okay for only one or two years,” she said. “It will leave only stones when the time comes for our children.”

Asian shares mostly rose Thursday after soft US economic data boosted expectations the Federal Reserve will soon cut interest rates and put the focus on key jobs figures coming at the end of the week.Investors were also keeping track of developments in Donald Trump’s trade war and signs of movement on possible talks between the US president and his Chinese counterpart Xi Jinping.Wall Street provided an uninspiring lead as a report by payroll firm ADP showed private-sector jobs rose by 37,000 last month, a sharp slowdown from April’s 60,000 and less than a third of what was forecast in a Bloomberg survey.Another survey showed activity in the services sector contracted in May for the first time since June last year.The readings stoked concerns that the world’s number one economy was stuttering, with the Fed’s closely watched “Beige Book” study noting that “economic activity has declined slightly”.It flagged household and business caution caused by slower hiring and heightened uncertainty surrounding Trump’s policies.However, the readings ramped up bets on a Fed cut, with markets pricing in two by the end of the year, with the first in September. Eyes are now on the non-farm payrolls release on Friday, which the central bank uses to help shape monetary policy.Still, there is some concern that the US president’s tariff blitz will ramp up inflation, which could put pressure on the Fed to keep borrowing costs elevated.Most of Asia rose in early trade, with Hong Kong, Sydney, Singapore, Taipei and Wellington up. Shanghai was flat and Tokyo fell ahead of a closely watched Japanese government bond auction.Seoul rallied more than two percent on continued excitement after the election of a new president ended a six-month power vacuum. The won rose around 0.4 percent, building on a recent run-up.Jakarta edged higher as Indonesia’s government began rolling out a $1.5 billion stimulus package after Southeast Asia’s biggest economy saw its slowest growth in more than three years in the first quarter.The possibility of US rate cuts hit the dollar Wednesday and it struggled to recover in Asia, making small inroads against the yen, pound and euro.Investors are awaiting news of talks between Trump and Xi, with the White House saying they could take place this week.But while tariffs remain a millstone around investors’ necks, IG’s chief market analyst Chris Beauchamp said traders seemed less concerned than they were after the US president’s April 2 “Liberation Day” fireworks.”With markets still rising, the overall view appears to still be that the US is no longer serious about imposing tariffs at the levels seen in April,” he wrote in a commentary.”President Trump appears fixated on a call with China’s president that might help to move the situation forward, but Beijing remains wary of committing itself to any deal.”This does leave markets open to another sudden shock, which might replicate some of the volatility seen in April. But that manic period appears to have dissuaded the administration from further major tariff announcements.”- Key figures at around 0230 GMT -Tokyo – Nikkei 225: DOWN 0.2 percent at 37,658.46 (break)Hong Kong – Hang Seng Index: UP 0.9 percent at 23,871.21Shanghai – Composite: FLAT at 3,374.87Euro/dollar: DOWN at $1.1415 from $1.1417 on WednesdayPound/dollar: DOWN at $1.3546 from $1.3548Dollar/yen: UP at 142.94 yen from 142.86 yenEuro/pound: UP at 84.27 pence from 84.26 penceWest Texas Intermediate: DOWN 0.1 percent at $62.77 per barrelBrent North Sea Crude: FLAT at $64.88 per barrelNew York – Dow: DOWN 0.2 percent at 42,427.74 (close)London – FTSE 100: UP 0.2 percent at 8,801.29 (close)

With shops planning midnight launch parties after a run on pre-orders, Nintendo releases the Switch 2 on Thursday, hoping to score record early sales for the games console.But the Japanese company has its work cut out to match the overall success of the Switch, which became a must-have during the pandemic with hit games such as “Animal Crossing”.Featuring a bigger screen and more processing power, the Switch 2 is an upgrade to its predecessor, which has sold 152 million units since it came out in 2017 — making it the third best-selling console of all time.Serkan Toto from Tokyo consultancy Kantan Games said he “would not be surprised to see Switch 2 breaking sales records in the next weeks and months”.In Japan, Nintendo’s online store had 2.2 million pre-order applications for the Switch 2 — an “insane number the industry has never seen before”, Toto told AFP.”We are looking at some sort of mega launch,” he added.Challenges for Nintendo include uncertainty over US trade tariffs and whether it can convince enough people to pay the high price for its new device.The Switch 2 costs $449.99 in the United States, more than Switch’s launch price of $299.99. Both are hybrid consoles which can connect to a TV or be played on the go.New Switch 2 games such as “Donkey Kong Bananza” and “Mario Kart World” — which allow players to go exploring off-grid — are also more expensive than existing Switch titles.”After playing it, I think it’s worth the price,” 24-year-old aspiring filmmaker Steven Paterno told AFP at a Nintendo launch event in New York City.”I loved the original Switch, but I had to admit the Switch 2 really tops it.”- Pre-order cancellations -Retailers in the United States, Europe and other major markets are gearing up for a rush of excited fans, with some stores opening at midnight to welcome them.”I’m very excited to pick it up at midnight,” 22-year-old recent college graduate Angel Caceres said at the New York launch event.”I’m going to be very tired after that.”Supply pressures have forced retailers to cancel orders, with Britain’s Game saying it is “working hard to reinstate as many affected pre-orders as possible”.”It seems that retailers in the US were especially confident in their ability to ship pre-orders and now need to deal with some serious backlash from customers,” Toto said.He expects “it will be hard to get a Switch 2 not only at launch but for weeks and months after, possibly through the entire year,” as was the case for months with the Switch.Nintendo forecasts it will ship 15 million Switch 2 consoles in the current financial year, roughly equal to the original console in the same period after its release.The Switch 2 “is priced relatively high” compared to its predecessor, so it “will not be easy” to keep initial momentum going, the company’s president Shuntaro Furukawa said at a financial results briefing in May.- ‘Super excited’ -The Switch 2 has eight times the memory of the first Switch, and its controllers, which attach with magnets, can also be used like a desktop computer mouse.New functions allowing users to chat as they play online and temporarily share games with friends could also be a big draw for young audiences used to watching game streamers.”People were a bit shocked by the price of ‘Mario Kart World’, the first $80 game that we’ve ever seen,” said Krysta Yang of the Nintendo-focused Kit & Krysta Podcast.But while the company is “going to have to do some work” to convince more casual gamers that it’s worth upgrading, Nintendo fans are “super excited”, she told AFP.In the United States, Nintendo delayed pre-orders for the Switch 2 by two weeks as it assessed the impact from President Donald Trump’s aggressive duties on trading partners around the world.But tariff uncertainty could in fact push consumers to buy a Switch 2 sooner, because they are worried that the price could go up, according to Yang.And the stakes are high for Nintendo.While the “Super Mario” maker is diversifying into theme parks and hit movies, around 90 percent of its revenue still comes from the Switch business, analysts say.burs-kaf/tu-gc/jgc