Nintendo Sets a Console Record - DTNSB 5038

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2:09Jenn Cutter: This is the Daily Tech News for Wednesday, June 11th, 2025. We tell you what you need to know, follow up on context, and help each other understand.

2:18Andy Beach: Today, Andy Beach tells us about why a newspaper would partner with AI company Perplexity, and good news for Nintendo, but bad news for gamers.

2:27Jenn Cutter: I'm good news Tom Merritt.

2:29Andy Beach: And I'm Jen Cutter.

2:31Jenn Cutter: You're not bad news. No, there's enough bad news in the world. Let's start with what you need to know with the big story. Nintendo says it sold 3.5 million Switch 2s in the first four days it was on sale. That's a record. For comparison, the original Switch took a month and still only sold$2.74 million in its first month. Nintendo projected before this that it would sell$15 million by next March, so they're like a quarter of the way there. Well, a fifth of the way there. But if it can increase supply, it seems like it might be able to sell more than$15 million by next March. Apparently, that steep$449 price didn't matter much, at least for now.

3:15Jenn Cutter: Production, however does. Foxconn is not able to make them fast enough to keep up with demand right now. About two-thirds of these are made in mainland China. Of course, that means the tariff situation has caused Nintendo to speculate on whether it would need to raise prices in the US in the future. More on that a little later in the show. However, most analysts think they would need to lower that price. Yes, there's enthusiasm now, but if you want to maintain sales momentum in the long term, $449 might be a little pricey. Meanwhile, the inevitable bugs that show up when any product this popular ships at scale have arrived, and this one's not too bad.

3:51Jenn Cutter: The Switch 2's battery indicator has been showing incorrect percentages for some people. So it'll say you have 80 % left when you have 90%. So it's actually good news when you find out it's incorrect, thankfully, instead of the other way around. Nintendo has published a fix that involves charging the device all the way, putting the Switch 2 into recovery mode, and then resetting the battery level meter. You might have to do that a couple of times, but apparently that'll work as a workaround. And there was some battery management stuff that was put in place at the last minute, might be at fault.

4:24Jenn Cutter: Maybe they'll have a patch for this down the road. The booming success also comes at a time when video game retail shops are hitting some hard times due to the rise in digital downloads. And it turns out people aren't going there to buy their hardware either. GameStop reported a 17 % drop in first quarter revenue with a specific 32 % drop in hardware and accessories revenue. So the chain says it will probably have to close more stores this year. Anyway, overall, the question here becomes, Jen, why are people so excited for the Switch 2, especially at that price?

4:57Andy Beach: Well, I had famously caved on my no Switch 2 at launch is too expensive stance when uh i got my mom in a small town to put in a pre-order for me so i went out to visit her and do the midnight launch and had to bring my mom and it was a blast

5:14Jenn Cutter: and i'm really really glad i did it you got caught up you got caught up in the i got caught up and

5:19Andy Beach: then uh and then i i gave uh what is now back to eb games canada because uh a cafec entrepreneur had bought it out so everyone is yeah it's the same reason we we still have toys r us is they're just separate companies so staff was really happy about being able to finally say eb games because canada it was gamestop canada but we never actually called it that it's like it's the rogers center what we call it the sky dome like it was just eb games the whole park forever i got i get you but yeah super excited went in my mom touched everything in the store i was like what's this what's this what's this uh and then i gave them over a thousand canadian dollars for the bundle and the new pro controller and i was slightly less happy about it yeah i could see

6:00Jenn Cutter: that well you know having firsthand tried to resist and failed uh what do you think is causing

6:07Andy Beach: all this excitement um i've been trying to decide whether the lack of preview units sent out to press because usually people would go to like ign and the other uh big gaming names see what's up and that did not happen this year everyone was in the exact same boat uh so even if things were worse than they turned out to be. I think for a launch, it was pretty decent. You were still excited based on the Nintendo name. Like, I think in most people's lifetimes, the only real bad Nintendo launches and lifetimes were the Virtual Boy back in the day and the Wii U, which was really funny when people were like, oh, no, the Switched GameCube in there.

6:47Jenn Cutter: And I don't think that's fair. I think the GameCube may have been a lesser launch, but it still wasn't bad. I liked it. Yeah.

6:52Andy Beach: And a lot of the GameCube, Game Boy Advance integrations too later came out really good. Like the Switch, like the biggest thing for me for the Switch 2 was the issue of the system transfer. Nintendo did not fully explain that. And we all kind of gave them the benefit of the doubt that this was not going to be the disaster it was. I had set mine up as a fresh system. And had I not physically had my other Switch available to me because I had brought it with me to my mom's, I would not have been able to play my brand new Switch 2 exclusive Mario game because they wanted them to be linked to my original account because I didn't do the full transfer because I didn't want to mess with that on the first day.

7:32Andy Beach: And like that was nuts. And that caught a lot of parents off guard. And also the fact that Nintendo was trying to charge 14 Canadian for the Welcome Tour that should have been bundled burned a little more goodwill. But thankfully, the battery issue was not it didn't hit everybody. I managed to not get that.

7:51Jenn Cutter: That's good. Yeah, it sounds like you're a victim of, well, you weren't supposed to do that. We planned this to work a certain way and you departed from the script and we didn't account for that, which also happens a lot when you have new stuff. I got a chance to play with my brother-in-law's Switch 2 over the weekend. And honestly, I was like, yeah, it looks nicer. It's a bigger screen. It plays a little smoother. Nothing about it really blew me away. And yet I still, I still find myself like looking at Target, looking at Best Buy, like, oh, have they opened up reservations yet? No, you still got to go in store.

8:33Jenn Cutter: Like, I don't, I think some of it is just everyone's so excited about it. It makes you excited about it somehow.

8:39Andy Beach: Yeah. Well, everyone's looking for good news. You've got the Nintendo Worm Fuzzies. I do love me some Mario Kart. So like, that's, that's been big. But they need to get more stuff out soon that isn't enhanced editions. Like the Pokemon fix for Pokemon Scarlet Violet, out of this world. And then you have the advanced Zelda games. But Mario Kart World is not, I don't think, enough of a system seller. They need to push more out. Apparently it is now, three and a half million.

9:12Jenn Cutter: But you're right. No, it makes sense that that would not be enough to keep people coming, at least not for the long term. It was kind of the same way when the Switch launched, I remember. There not being enough titles for a while, but eventually there were.

9:25Andy Beach: Yeah, but Breath of the Wild was a lot bigger of a time sink than Mario Kart. No matter how much you love Mario Kart.

9:31Jenn Cutter: Very good point, yeah. Yeah, for sure. You can put down Mario Kart a lot easier than you could Breath of the Wild. Well, there you go, folks. Nintendo Switch 2, a total success, at least after the first four days. But I do want to check back on this in a month, two months. you know, to see, does it follow the normal slowdown? All of these consoles slow down, you know, after the first launch? Or does it fall faster? Was there a lot of, I need to get it now, because I don't know if it'll be more expensive later kind of thing. That could be part of this too. I don't know.

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13:31Jenn Cutter: There's more we need to know today. Let's get to the briefs.

13:35Andy Beach: In what might be very timely news for Nintendo, and obviously the rest of tech, China and the U.S. have agreed on a framework for a trade agreement. The deal resolves restrictions on the export of rare earth minerals and the admission of Chinese students to U.S. colleges. The overall tariff rate on goods from China to the U.S. will drop to 55%, though analysts say that, in effect, with variants across different categories of goods, it will end up being something like 33%. There was no mention of a change in export controls on chip technology from the U.S. to China.

14:10Jenn Cutter: Yeah, it feels like this is round one. There's still a lot of unresolved questions, still a lot of room to reduce that tariff rate. But this seems like a good first step, a good first round that will help companies like Nintendo, hopefully. It is just a framework, which I would normally say like, well, you know, once they get to the framework stage, these things are pretty much done. But with today's participants in today's environment, I would say, you know what? Don't count on it. Don't count those eggs yet. Let's give it until it's signed to be absolutely sure. But it does look good.

14:44Andy Beach: Yes. And we will, of course, stay on top of that and let you all know.

14:48Jenn Cutter: Google has started rolling out Android 16 to owners of Pixel devices. I just got it rolled out to me. You can go force it to be downloaded as well. It's an early upgrade for Android, which usually does its major version changes later in the year. Pixel phones have it now with other phones to get it in the coming weeks, depending on your manufacturer. It might be more like a month or two, depending on the manufacturer. And it's not a huge upgrade. Some of the features aren't going to arrive until later point upgrades, but here's what you get now, or at least some of the highlights. Apps will get live notifications that show progress on things like a delivery or a game, a sports game.

15:24Jenn Cutter: There'll be a small icon in the status bar that you can tap to expand for more info. That's app by app. Not every app is doing it, but it's there. It's like live notifications work on iOS. All apps now have bundled notifications. I have experienced the joy of that. All seven of my dog walkers app notifications collapsed into one beautifully. That was wonderful. Advanced protection comes to all devices. So that'll block 2G connections. You can unblock it if you need a 2G connection for some reason, but usually those are malicious these days for people. So that'll block those. It'll block sites without proper security like HTTPS, and it will block unknown USB devices from connecting to your phone.

16:06Jenn Cutter: Support for using the device's mic for Bluetooth LE devices like hearing aids. So if the mic on your Pixel is better than the one in your hearing aid, you're in a loud room, you can have it use the mic on your phone. Pixel Studio app gets Emoji Kitchen, so you can create your own emojis. A lot of the more significant changes are under the hood, like filling larger screens, dynamic screen sizing, expanded camera features for apps, stuff like that. What is not here yet. So when I finally got my Android 16, it was like, here I go. Oh, doesn't look that different is material three expressive design and desktop mode.

16:41Jenn Cutter: Those are coming later this year. So I can't use it as a desktop. It doesn't look that different, but it is updated.

16:48Andy Beach: Well, bundled app notifications was something I did not know I needed in my life until I got it on my phone too. Makes a difference.

16:57Jenn Cutter: Yeah. And some apps were able to bundle notifications, but now every app has bundled notifications. So that is a nice change. And Android Faithful did a good rundown of all of this, including some things coming to Wear OS as well. So you might want to listen to Android Faithful for the complete thing. But they agreed that, you know, you're not getting a ton of things in this one. There's more to come later this year.

17:21Andy Beach: Huawei introduced its Pura 80 series of phones with batteries that start at 5 ,600 milliamp hours of capacity. The base model has a 6.6 inch screen with the Pro and Pro Plus at 6.8 inches and slightly larger battery capacity at 5 ,700 milliamp hours. The Ultra's camera features a one-inch main sensor and is the first phone to feature a dual-lens telephoto system. They support Beidou satellite connectivity for text and photos, and the Pro and Ultra support Beidou and Tianchong for satellite. They're available in China for$6 ,500 to$11 ,000, the equivalent of about$900 to$1 ,300 US dollars.

18:05Jenn Cutter: Yeah, Huawei, once again, blazing a trail with the camera sensors. Everybody was raving about that and delivering a good, solid phone. Apparently, this has got the Kirin chip in it, Huawei's own chip. Although they didn't say that. People are kind of deducing that from some of the other specs they announced. But good solid phones coming to China first and then starting to trickle out to Europe and Africa and India and other parts of the world, although probably not North America. Neither one of us are probably going to see this. A bunch of open AI news to tell you about. The O3 Pro reasoning model launched for ChatGPT Pro team and API users starting on Tuesday.

18:46Jenn Cutter: That replaces the O1 Pro model. Enterprise and EDU users will get it next week. It does not yet have temporary chats, image generation, or workspace support at launch, but those are coming. The O3 model prices also dropped by 80 % for API users. OpenAI has not released an open model in years. It was supposed to release one this month in June. However, CEO Sam Altman said on X that that is delayed until later this summer. He said there's a really great, amazing reason you're going to love it once it's out, but it's worth the delay, worth the wait, all that sort of thing. But that long wait for an open model is going to be a little longer for you open source fans.

19:27Jenn Cutter: France's Mistral released its first family of open reasoning models, open reason. They've released open models before. Their first family of open reasoning models called Magistral on Tuesday. So there's lots of open models out there if you want one, just not yet from OpenAI. Altman also published a blog post called The Gentle Singularity, forecasting what he believes will happen in the AI space for the next 15 years. It's very futurism, optimism. If you are into that and you want to hear that, it's a good read. He believes that next year we will see, quote, systems that can figure out novel insights.

20:05Jenn Cutter: That's one of the separators between the current large language models and what some people call super intelligence or AGI, is the ability for a model to come up with something on its own, not just something that you can trace back to like, oh, it's mimicking or pulling out of the data or whatever. He also said that an average chat GPT query uses about 0.34 watt hours of energy. That's about what your oven would use in one second as it's cooking your food. And he also addressed water use. A lot of people are concerned about water use for cooling of data centers. He said the average query uses roughly one-fifteenth of a teaspoon of water.

20:44Andy Beach: I don't think I'm alone in this, but I really do need to start making myself a chart of who does what and how and what its specialty is, because there's so many now. I am definitely blending a bunch of features and different AIs together.

20:58Jenn Cutter: I'll be honest, one of my most anticipated features is one that Altman promised earlier this year, and I hope others, like Anthropic and Mr. All do as well, which is it will tell you which model to use if you want. You put in the query, it'll be like, oh, I think the 03 or the 4.5 is best for that model. So that you don't always have to decide based on the chart that Jen wisely is going to have to make until they do that.

21:27Andy Beach: Exactly. Like if these things want to be a daily tool, which obviously they do, Everyone knows you want to use a document program for words and Excel for numbers. So yeah, they do need to simplify and maybe start naming things a little easier.

21:43Jenn Cutter: It would be the perfect solution if it can just tell like, oh, that's a reasoning problem. Let me chuck it to 03. Like, oh, that's a coding problem. Let me put that in 4.5. Like, it should be able to do that. So I'm looking forward to that getting reliable.

21:57Andy Beach: NVIDIA CEO Jensen Wang announced it's teaming up with France's Mistral to build data centers using 18 ,000 Blackwell chips in Assange, France. Mistral plans to roll out data centers like it in more European locations. NVIDIA also announced deals with Nebius and N-Scale in the UK, as well as companies in Italy and Armenia. NVIDIA is also building 20 AI factories or an AI cloud starting in Germany. Wong also said he believed quantum computing is at an inflection point.

22:30Jenn Cutter: Yeah, the majority of his talk was Europe needs infrastructure and I'm here to build it. And it wasn't just talk. He had these deals to be like, I'm doing it here in France. I'm doing it in Germany. I'm doing it here. So that was good, I think, especially for companies in Europe that need this kind of infrastructure. That little throwaway thing about quantum computing at an inflection point got a lot of headlines as well. I think that's Huang trying to position NVIDIA as the place to come eventually for your quantum computing needs. They've got a couple of products that are in that space. And he's been really good at knowing what the next thing is.

23:06Jenn Cutter: That's why they were there for the crypto revolution. They are there right now for the large language model revolution. And I think he's saying, I think that's where the puck is going. I'm going to skate there. at google io we saw google beam a video conferencing product that makes a video call feel 3d just using some generative models to create the effect wednesday hp announced the hp dimension with google meet beam it's the first product to use this has six cameras obviously the google models you need and a 65 inch light field display that's a special display that's optimized to be able to perform this.

23:48Jenn Cutter: It's compatible with most major video conferencing software. That integrates Zoom and Google Meet, of course, right into it, but it also can interoperate with Teams and WebEx, among others. HP said that it's tests. If you're like, why do I need it to look good? I just need a video conference. 2D is good enough for me. They said that having this kind of presence where you really feel like you're there with somebody will increase memory recall from a meeting by 28 % and increase your focus in a meeting by 14%, as well as increase the amount of nonverbal communication. That's good, if that all is true, because the HP dimension with Google Beam is going to cost you$24 ,999.

24:32Jenn Cutter: And you probably need more than one. That's each coming to select customers later this year.

24:39Andy Beach: Well, I love telling people when they are right. And Tom, you were right in our Google I.O. show. you said this is exactly the thing that was coming down the pipeline for the corporate customers at the high end. And I would call this high end.

24:52Jenn Cutter: I don't know if I said a price point. I don't think I did. I'm not sure I would have said$25 ,000. I would have been like$10 ,000 or something. I don't know. Maybe this should be more expensive. Maybe some people were expecting it to be$100 ,000. So$25 ,000 might seem cheap to some enterprises. I have no idea.

25:12Andy Beach: A few more quick items to get to. The browser company recently announced end of life for its ARK browser. And successor, the AI-focused Dia, is now available in an invite-only beta.

25:25Jenn Cutter: A couple of European court maneuvers. WhatsApp said it will support Apple in its court case over providing the government the possibility of access to iCloud data. And Meta and TikTok are going to challenge the fees levied against them for monitoring compliance with the EU's Digital Services Act. They say those fees are not wrong to charge. They're just disproportionate. They think they're too much.

25:47Andy Beach: And in an interview at WWDC, Apple Senior Vice President Craig Federighi said that Apple had delayed Siri because its error rate was unacceptable. Federighi and Greg Joswiak both emphasize that Apple doesn't want to build chatbots, but integrate features into the OS and give developers access to a local model.

26:08Jenn Cutter: Okay, those are the essentials for today. Let's get a little deeper into an ongoing story.

26:14Andy Beach: LeMond has partnered with AI startup Perplexity to share content and co-develop AI tools, signaling a shift in how traditional media engages with generative search platforms. Andy Beach has more.

26:26Jenn Cutter: Andy, thanks again for joining us. Hey, Tom. Good to see you. So tell us what LeMond is up to here with perplexity because we've got a lot of partnership announcements that have been happening over the last couple of years here. What's significant about this one? Yeah, and I suspect this is the first of many that we see like this because it's really valuable for both parties. So LeMond is a French newspaper. They have made an announcement with perplexity, and it's really a two-way path. They are licensing their content in order to help train the models. But in return, they themselves are also going to be co-creating and implementing a number of editorial tools that will help both their journalists and their editors with the production of the content for the paper.

27:15Jenn Cutter: So how does that differ from, say, you know, OpenAI announcing that it's got some partnership with the Washington Post, for example? By and large, the things that we've seen to date are very much one sided, meaning that the large language model training companies are really just buying content or licensing content on an ongoing basis from a movie studio, a broadcaster or in these cases, a newspaper. but they're not getting any, they're not doing anything with the company in order to help build tools that are actually valuable for them as a customer. So, so I feel like this is something that's long overdue and, and likely a pattern we're going to see more and more of rather than just for a data owner.

28:04In this case, again, a newspaper looking to figure out how to make additional money off of the content that they have. This is them looking for a duality of it. How do we know we need to go implement AI anyway? Let's make it cheaper and easier for us to do that by making it part of a larger deal.

28:24Jenn Cutter: It is, I think, going to be surprising to some to hear that this is a European newspaper doing this because it seems like every announcement of a new model rolling out is except in the UK, Europe and Switzerland, right? Except in the European economic area, it's always a little delayed there because they have more stringent regulations around this sort of thing. They do. But I think that's also why this will allow partnerships like this to proliferate there faster. In other words, I think part of the problem we have in the US is that we don't necessarily have the policy and regulation controls that are helping with ethical AI and the problems that we see around that, which is why we keep having announcements and black eyes by companies that don't necessarily know the provenance of their content.

29:16But in Europe, they do have more stringent controls, which I've sort of, in a talk recently, sort of compared it to like the brakes on a car. Like the brakes are on there, do slow the car down, but they do it so that you don't go careening off a cliff. And in this case, those regulations are allowing companies to develop things that companies are then comfortable signing deals like this to both license their content, but then also build tools that will help them with the future of how they go develop new content for their newspaper. Yeah.

29:52Jenn Cutter: And I think there's something here to see a deal like this happening this early in the development of these kinds of tools that is interesting. And I don't know if it's been learned because of the mistakes with search, but it's certainly different than search where newsrooms were using search. They're still using search. But there was a lot of anger over search engines taking newspaper content and indexing it and providing summaries and that sort of thing. This seems to be a good way to try to stave that off from being a problem with these kinds of tools. Yeah, I think it solves problems in that direction.

30:28It also means that I'm willing to bet that perplexity as part of this will be having to create a lot of tooling around validating facts and information for the journalist as part of what they do. And that's going to be beneficial for the technology companies as well because that is a stigma that they have. We all think of large language models hallucinating and making up content. So if they're able to work closely with LeMond around creating fact-checking tools that are now just integrated as part of the AI experience, that's valuable for everybody, not just the newspaper.

31:06Jenn Cutter: And let me tell you, journalists, and I'm assuming the ones at LeMond are no exception, pretty intolerant when it comes to a tool that burns them on accuracy, right? So it's going to take a lot for them to trust this tool. But once they trust it, they're going to rely on it and say, yes, this is rock solid. But it's going to have to be rock solid. Yeah, absolutely. I did also want to mention there's another group in Europe that I keep an eye on, the European Broadcasting Union, EBU. This is the governing body that all public broadcasts in Europe and actually also Japan are members of. And they are closely looking at AI technology as well and trying to create both guidelines around what it must do in order to help public news, public sports, public broadcasts in general, but also the ethical background and sourcing that the data must have and things like truth and validation checking as part of it.

32:07So I suspect between things like that and this announcement, we're going to see hopefully more of this start coming to light. But it very likely the next few may very well be in Europe because I do think they are outpacing from a policy perspective what we're doing in the US. We may have more technology here, but they have better policy practices that allow businesses to adopt it there.

32:33Jenn Cutter: Well, Andy, thanks so much for helping us understand this. So folks want to get more of your insights on this sort of thing. Where should they go? Yeah. So I have a sub stack I've started. It's a beach dot sub stack dot com. A B E A C H. And I'm covering the convergence of AI and media technology every day. Hey, folks, if you listen to the show, you might not be aware that we have a YouTube channel, YouTube dot com slash daily tech news show where you could listen to the show. We actually post the audio version there. And we also have a live stream that we do once a day as well. DTNS live. So do us a favor, head on over to youtube.com slash daily tech news show.

33:10Jenn Cutter: Click on that like button. It'll help us. And if you haven't yet, please subscribe.

33:20This episode is brought to you by Capital One. Capital One's tech team isn't just talking about multi-agentic AI. They already deployed one. It's called Chat Concierge and it's simplifying car shopping. Using self-reflection and layered reasoning with live API checks, it doesn't just help buyers find a car they love. It helps schedule a test drive, get pre-approved for financing, and estimate trade-in value. Advanced, intuitive, and deployed. That's how they stack. That's technology at Capital One. This is the story of the one. As a shipping manager, he's running the dock, stocking supplies, and making sure every order goes out on time.

33:57And Grainger helps him stay prepared. From shipping supplies to PPE to hand tools, he counts on Grainger to keep products moving and trucks rolling. So his operation runs smoothly no matter the shift. Call 1-800-GRAINGER, click grainger.com or just stop by Grainger for the ones who get it done.

34:22Andy Beach: We end every episode of DTNS with some shared wisdom. Today, Kevin is helping us understand.

34:28Jenn Cutter: Yes, Kevin writes,

34:59Jenn Cutter: because they're going to release them in the fall. So that gives three months before the 26 becomes 2026. That's super smart, Kevin. I love that. Thank you for sending that along. That's a great tip.

35:09Andy Beach: That is genius. And as always, shout out to everyone doing tech support at home and for extended remote families. You're keeping the world turning, frankly.

35:19Jenn Cutter: Yeah, doing the Lord's work for sure.

35:22Andy Beach: So what are you thinking about? Do you have some insight into a story? please share it with us over at feedback at dailytechnewsshow.com.

35:31Jenn Cutter: Please do. Keep those emails coming. And a big thanks to Andy Beach and Kevin for contributing to today's show. Thank you for being along for Daily Tech News Show. Good news, too. If you like music, our daily music headline show now available as an Amazon Flash Briefing. Go at it to your Echo now. Talk to you soon.

35:54the dtns family of podcasts helping each other understand diamond club hopes you have enjoyed

36:02Jenn Cutter: this program there's more we need to know today let's get to the briefs oh wait i screwed that up this episode is brought to you by capital one capital one's tech team isn't just talking about multi-agentic AI. They already deployed one. It's called Chat Concierge and it's simplifying car shopping. Using self-reflection and layered reasoning with live API checks, it doesn't just help buyers find a car they love. It helps schedule a test drive, get pre-approved for financing, and estimate trade-in value. Advanced, intuitive, and deployed. That's how they stack. That's technology at Capital One.

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