According to “VGchartz” game hardware sales statistics, Nintendo’s Switch sales have exceeded 120 million units, ranking third in the game hardware sales list, and the first and second places are Sony’s PS2 and Nintendo’s NDS. 150 million units.
“Nikkei Chinese Network” pointed out that Switch will have the opportunity to become the most “longevity” hardware. From the “Family Computer” (Family Computer) that came out in 1983 to the launch of “Super Famicom” (Super Famicom) in 1990, it took 7 years and 4 months. Judging from the situation of Nintendo placing orders with suppliers, 2023 The annual Switch shipments will reach about 20 million units, and the industry believes that its follow-up models will not be launched on the market until the second half of 2024 at the earliest. In other words, the Switch, which was launched in March 2017, may break the Nintendo game console change record and become the “longest-serving” flagship machine.
In the ever-changing and innovative video game market, few companies can maintain a leading position for a long time at such a slow update rate. Nintendo’s success is not accidental.
Do not compete with competitors in “technology”, the focus of the game content is “fun”
Compared with competitors PlayStation, Xbox, and e-sports desktop computers (PCs), software and hardware technologies continue to improve, such as achieving higher image quality, and more and more VR (virtual reality) games However, Nintendo has always used “old technology” to continue to innovate. “Many researchers want to use the most advanced technology to develop products, but if they want to make products that will sell well, the latest technology will actually deduct points from the product, and the existing technology should be applied to a completely different field, but it is easy to create a best-selling product. Commodities.” Said Junhei Yokoi, the former head of Nintendo’s first development department, in an interview.
Instead of sprinting on technology, Nintendo is constantly optimizing “content”. “Nintendo has always followed the design concept of giving priority to game content.” Chris Kohler, content director of game developer Digital Eclipse, said in an interview with The Guardian. It also allowed Nintendo to dominate the game hardware market. Today, among the many Switch users, most of them still like to play “Assembly! Animal Crossing Friends Club” (accumulated sales of more than 40 million sets), “Mario Kart ” or light casual (Light) players with fitness rings.
Nintendo’s “family sharing” charm accumulated by light players over the years makes it a true “multi-generational game”. Children who used to grow up with Mario and Pokémon on the Game Boy are now playing these games with their own children on the Switch. “Nintendo represents a simple, fun way to play video games, a return to childhood The bridge of joy and excitement of the game.” “The Guardian” described it.
After the Switch, what’s next for Nintendo?
However, the life of the Switch will eventually come to an end. “Nikkei Chinese Network” reported that when President Shuntaro Furukawa was asked about the strategy of a new generation of game consoles, he often only answered: “I hope to provide entertainment that is different from others.” What can Nintendo do next?
In this regard, there are several prospects envisaged by market stakeholders. The first is to launch an improved version of the existing model within one or two years. The advantage is that the life of the Switch is extended, and at the same time, it can gain revenue through software sales. However, the shortage of chips will be a major bottleneck for this solution. Hideki Yasuda, a senior analyst at Toyo Securities, pointed out: “It is already difficult to produce existing models. Even if an improved version is launched, there is a hidden concern that the supply will be scarce.”
The second is to launch a new generation of models, which are compatible with the Switch, but have selling points such as improved image quality. However, securities analysts in Japan believe that the software of the new generation of models may not sell well. “Original users may not want to upgrade, and it is not attractive enough for potential users.”
In addition, inflation in the Japanese market will also increase obstacles for subsequent models. The domestic price of Switch in Japan has been around 30,000 yen since its launch. With the skyrocketing cost of materials and logistics, the prices of other electronic products have also risen. Yasuda Hideki believes that “the next generation of models will inevitably increase in price.”
“Nikkei Chinese Network” concluded that Nintendo is actively exploring style innovations. If the impact on users is weak, or the novelty is over-promoted, users may also leave. Nintendo will continue to face tough choices.
Source: The Guardian, Nikkei (1), Nikkei (2)
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