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Nintendo’s Switch 2 is selling at more than twice the pace of the original

Nintendo posted the results of its fiscal first quarter on Friday, and the Switch 2’s initial quarter on sale was a banger.

Nintendo sold more than 5.8 million Switch 2 consoles in the April to June quarter, despite the system launching at the tail end of the period (June 5).

That’s more than double the original Switch’s 2.7 million first-quarter sales, and the console’s success more than doubled Nintendo’s quarterly revenue to about $3.8 billion. The better-than-expected revenue figure fueled Nintendo shares, and its US ADRs are up about 2% in premarket trading.

Switch 2 game sales reached 8.67 million units, compared to 24.4 million units for original Switch games. Because of the new console’s backward compatibility, Nintendo says “the people purchasing Nintendo Switch software include not only owners of Nintendo Switch, but also people who have bought Nintendo Switch 2.”

Nintendo said it still expects to sell 15 million Switch 2s and 45 million games in the fiscal year ending in March.

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Uber is giving drone deliveries another go in a partnership with Flytrex

Ride-hail and delivery giant Uber on Thursday announced a new partnership with drone operator Flytrex to begin testing an autonomous delivery-by-air system by the end of the year.

As one of the few drone providers with Beyond Visual Line of Sight authorization from the FAA, Flytrex already partners with Walmart and DoorDash on similar programs. The company said it’s delivered more than 200,000 meals to suburban US households in the past three years.

This isn’t Uber’s first foray into drone deliveries. Under its then aviation arm Uber Elevate, the company tested the tech in a partnership with McDonald’s in 2019. Uber sold its aviation division to Joby Aviation in late 2020.

Uber shares didn’t move much on the announcement, up about 1% in premarket trading.

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Reddit bounces on report that it’s in talks with Google, OpenAI on fresh data-sharing deal

Reddit shares were down 5% in Wednesday trading before news that the company is in early talks to make its next AI content-sharing deals with Google and OpenAI sent them back up to roughly flat.

According to reporting by Bloomberg, Reddit is seeking a new data deal structure that includes dynamic pricing and would encourage the companies’ AI users to contribute to Reddit.

Reddit reportedly struck deals of $60 million per year with Google and OpenAI last year. The company scored $35 million in “other” revenue — which includes content licensing agreements — in its most recent quarter. That accounted for about 7% of the company’s overall revenue in the period.

“One of the things that we’ve learned, particularly through the data licensing deals is... how essential Reddit is to AI or LLMs as we know them and the next generation of search,” Reddit CEO Steve Huffman said on the company’s July earnings call. “And so I think a lot has changed over the last couple of years. Every variable has changed since we signed those first deals.”

Reddit reportedly struck deals of $60 million per year with Google and OpenAI last year. The company scored $35 million in “other” revenue — which includes content licensing agreements — in its most recent quarter. That accounted for about 7% of the company’s overall revenue in the period.

“One of the things that we’ve learned, particularly through the data licensing deals is... how essential Reddit is to AI or LLMs as we know them and the next generation of search,” Reddit CEO Steve Huffman said on the company’s July earnings call. “And so I think a lot has changed over the last couple of years. Every variable has changed since we signed those first deals.”

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