Switch extended super bowl ad. Oh noes! Nintendo going to go third party.
The Switch is an evolution of the Wii U, but eminently simpler in form factor and broadens the use case for a home and portable console hybrid. As a result Nintendo’s Switch is likely to banish the painful memories of the poorly selling Wii U, which to date has only sold 13.4 million units since its launch in 2012. We currently forecast 4 million Switch sales in 2017 although this may be revised in the coming days based on the earlier than expected launch date and likely stock availability through the year.
Super Data Research:
Nintendo is de-emphasizing physical cartridge sales. The cartridge system for the Switch is based on the 3DS more so than the Wii U, suggesting that digital distribution will play a bigger role for the upcoming platform. Consumer generally find it is easier to expand the memory and download titles directly to the device than having to carry all of their games separately.
To the contrary, most Switch users will only buy software on cards.
Third, Western third-party games are boring: Who cares about FIFA on the Switch?
And now for our favorite analyst: Michael Pachter. Oh yes.
January 17, 2017
Nintendo apparently believes the Switch could help it turn the tide.
Pachter, however, doesn’t see it that way. He first took issue with the Switch’s $300 price tag. At that price, the Switch’s price will match the Xbox One and PlayStation 4, and he noted that retailers will often discount those devices to even cheaper prices. He believes that Switch needs to be a “more affordable alternative to the PlayStation 4 and Xbox One” in order to be successful. Since it’s not cheaper, Switch could be in for trouble, Pachter argued.
January 26, 2017
Saying that the price was “ok” given the technology that is packed into it, he praised the software line-up but warned that Nintendo needed to make sure that they could maintain momentum moving forward with both first and third-party support.
“I think that Switch is priced ok. There is a lot there for the $299. It’s slightly less expensive than the Wii U was at launch. I think that the control scheme, the tablet, the docking station and the ability to play on [the] television is more intuitive, more kind of normal gaming controls than we had with the Wii U,” he shared in this week’s Pachter Factor episode on SIFTD.
I think some of the analysts are beginning to just copy and paste parts of this blog for their notes to investors. Hilarious.