Nintendo finally announced the Switch. It looks like the company is making a big SWITCH with this system……no?
Bad puns aside, I have not heard any compelling answers to what the Switch is. Our friends, the analyst, seem to be mum on it. Why? This is clearly a big switch for Nintendo. I don’t think investors get it either. Nintendo’s stock fell 6 percent after the announcement.
I will explain the Nintendo Switch here and on Source Gaming in the coming days, but I want to point out some of the things I’ve heard from folks talking about the Nintendo Switch
Each Nintendo system sold less than the previous
I’ve heard this one quite a bit, so I think it may be a point of interest (or a sore spot), for Nintendo fans. Yes, it is true. With the exception of the Wii, each console has sold less than the previous. If you just look at this, you’d assume that demand for Nintendo is declining. Nintendo’s handhelds follow a similar trend. Nevertheless, their handhelds still do well. Despite a very poor start and Nintendo having to cut the price, the 3DS has still sold about 60 million. The PS4 has only sold 42 million. I think fans are aware this is a good move.
The Handheld Market is Dying
You can see above. The 3DS sold 60 million units during the great recessions. As I mentioned in a previous post, the market has contracted. If the handheld market is dying, then by the same vein, so is the console market (as the 3DS has outsold the PS4). Everyone seems to think that mobile eroded the 3DS, but the 3DS’s problem was its games. It took the same strategy as the Wii U. Use the DS’s brands to push an idea Nintendo wanted to do (in this case, 3D). The 3DS began to recover when the price fell and better games came out. I’ll talk more about this point in the future, but there is weird assumption that everything is mutually exclusive, but it isn’t.
Nintendo Struggled With Two Consoles
This was something I mentioned in The NX Will Have How Many Games!? That Nintendo had problems creating pipelines for two systems. This has been made worse with how long it takes to make games now. A few people have pointed out this struggle, so good on them.
The Nintendo Switch is trying to be the “Second Console”
This one came from a contemporary at Source Gaming. As you can expect, I disagree. No one makes their console with being second place in mind. They make it to sell as many units as possible. I think this thought comes from the idea that the Nintendo Switch because its not a normal console. The same thing was said about the Wii, yet it outsold the PS3 and XBox 360. Being the “second console,” means very little.
There is more to say about the Nintendo Switch, but I will save that for another day. Check here and on Sourcegaming.info for more.