WSJ Tech News Briefing: Can Two Big Releases Lift the $58 Billion Videogame Industry?

Release Date: March 3, 2025

The latest episode of WSJ Tech News Briefing, hosted by Charlotte Gartenberg, delves into two pivotal topics shaping the tech landscape in early 2025: Apple's introduction of the new iPhone 16e and the burgeoning anticipation surrounding two monumental releases in the video game industry—the next-generation Nintendo Switch and the long-awaited sequel to Grand Theft Auto. This comprehensive summary captures the key discussions, insights, and expert analyses presented in the episode.

1. Apple’s New iPhone 16e: A Balanced Approach to Affordability and Features

Introduction to the iPhone 16e

The episode opens with Charlotte Gartenberg introducing the newly unveiled iPhone 16e, priced at $599. While not the most affordable option in the market, the device positions itself as a more accessible alternative within Apple's lineup. Personal tech columnist Nicole Nguyen provides an in-depth review based on a week-long hands-on experience.

Key Features and Advantages

Nicole Nguyen highlights several notable features of the iPhone 16e:

• Price Point: At $599, the iPhone 16e offers a significant discount compared to the standard i16 models, which range from $800 to $1,000. Nguyen remarks, “[01:24] Nicole Nguyen: Well, this iPhone is Apple's cheap phone, but $599 isn't super cheap. But I do like that the price is not a gazillion dollars.”

• Safety Features: The device includes innovative safety mechanisms such as location and texting via satellite and a crash detection system. These features have proven invaluable during emergencies, such as California’s wildfire season. Nguyen emphasizes, “[01:24] Nicole Nguyen: This can definitely save lives.”

• Battery Life: One standout aspect is the impressive battery performance, boasting 26 hours of video playback—longer than the more expensive iPhone 16 models. This is attributed to Apple’s first in-house designed cellular chip, which enhances power efficiency. Nguyen explains, “[02:14] Nicole Nguyen: This has the biggest battery that you can get of a phone this size in the iPhone 16 lineup.”

Drawbacks and Considerations

Despite its advantages, the iPhone 16e has some limitations:

• Design Changes: The removal of the classic home button and Touch ID in favor of Face ID has been a point of contention. Nguyen lamented, “[03:01] Nicole Nguyen: The classic iPhone design with the home button is no more... Sorry to those folks with small hands.”

• Screen Size: At 6.1 inches, the device may not appeal to users who prefer smaller phones, potentially alienating a segment of Apple's customer base.

• Feature Trade-offs: For those seeking more value, refurbished models of the iPhone 15 might offer better features at a similar price point. Nguyen advises, “[03:43] Nicole Nguyen: If you want more value, you should take a look at what your carrier offers in terms of refurbished devices.”

Target Audience

According to Nguyen, the iPhone 16e is ideal for consumers who prioritize affordability without foregoing essential features. However, those seeking additional functionalities like MagSafe or an ultra-wide camera might find better value in alternative options.

2. The $58 Billion Videogame Industry: Anticipation and Uncertainty Surrounding Two Major Releases

Overview of the Industry’s Current Climate

Following the iPhone segment, the podcast transitions to an analysis of the video game industry's prospects in 2025. Despite a challenging year in 2024, the sector may experience a resurgence driven by two highly anticipated releases: the new Nintendo Switch console and a sequel to the Grand Theft Auto (GTA) franchise.

Anticipation for the New Nintendo Switch and GTA Sequel

Dan Gallagher, the “Heard on the Street” columnist, provides insights into the excitement enveloping these releases:

• Nintendo Switch 2: Building on the original Switch’s success, which has sold over 150 million units, the new console is poised to set records. Gallagher notes, “[05:58] Dan Gallagher: These are follow ups to two very massively successful releases... Nintendo's biggest selling console ever.”

• Grand Theft Auto Sequel: After a 12-year hiatus, the next GTA installment is expected to rival its predecessors in popularity and sales. The last entry, GTA 5, remains one of the top-selling games globally. Gallagher states, “[05:58] Dan Gallagher: Grand Theft Auto is one of the most popular game franchises of all time.”

Investment Implications and Market Reactions

Investors are responding positively, with stocks for both Nintendo and Take-Two Interactive (the parent company of GTA) already experiencing gains. Charlotte Gartenberg points out, “[07:59] Charlotte Gartenberg: Nintendo's stock has already jumped roughly 34% over the past three months...”

Potential Risks and Historical Context

However, Gallagher cautions against assuming guaranteed success:

• Historical Precedents: Nintendo's previous console, the Wii U, was a significant disappointment compared to the Wii, selling only about one-eighth of the units. Gallagher remarks, “[08:51] Dan Gallagher: There’s no guarantee at all that the Switch 2 is going to be the same kind of hit.”

• Quality Over Hype: The video game market is notoriously unpredictable. Even highly anticipated releases can falter if they fail to meet quality expectations. As Gallagher explains, “[06:37] Dan Gallagher: The quality of the actual item ends up mattering the most. Gamers are really particular.”

Impact on the Broader Video Game Industry

The success of these two releases is critical for the industry’s projected growth in 2025. Failure to meet expectations could result in continued struggles, considering the previous year's challenges. Gallagher highlights, “[09:27] Charlotte Gartenberg: Are there any possible headwinds on the...”

Market Dynamics and Competitive Landscape

The timing of these releases may also affect the industry's landscape. Competing game publishers might adjust their release schedules to avoid direct competition with these titans, potentially leading to a quieter release cycle. Gallagher notes, “[09:29] Dan Gallagher: ...you might see more quiet release cycle overall in the fall.”

Conclusion: A Pivotal Year for Tech and Gaming Industries

The episode encapsulates a period of potential transformation for both the smartphone and video game industries. Apple's iPhone 16e offers a more affordable entry point into their ecosystem, balancing essential features with cost considerations. Meanwhile, the video game industry stands at a crossroads, hinging on the success of two marquee releases that could either buoy the sector back to robust growth or underscore its vulnerabilities.

As Tech News Briefing continues to monitor these developments, stakeholders—from consumers to investors—remain keenly attentive to the unfolding narratives within these dynamic industries.

Notable Quotes:

• “[01:24] Nicole Nguyen: Well, this iPhone is Apple's cheap phone, but $599 isn't super cheap. But I do like that the price is not a gazillion dollars.”

• “[02:14] Nicole Nguyen: This has the biggest battery that you can get of a phone this size in the iPhone 16 lineup.”

• “[03:01] Nicole Nguyen: The classic iPhone design with the home button is no more... Sorry to those folks with small hands.”

• “[05:58] Dan Gallagher: These are follow ups to two very massively successful releases... Nintendo's biggest selling console ever.”

• “[08:08] Dan Gallagher: And that's anticipation for what's supposed to be a big console.”

• “[09:29] Dan Gallagher: ...you might see more quiet release cycle overall in the fall.”

Produced by Jess Jupiter with Supervising Producer Kathryn Millsop.