For the past decade, Nintendo has underperformed.\u00a0 This has changed recently as the Nintendo Switch has been a star performer the past year.\u00a0 Going into holiday 2019, and the end of a rough decade for the company, Nintendo is looking stronger than ever.<\/p>\n
The Wii, launched in 2006, was Nintendo\u2019s most successful console system, eventually selling 100 million units.\u00a0 However, the Wii was more of a short-term hit.\u00a0 Its unique motion control system proved to be somewhat of a novelty.<\/p>\n
From 2009 onward, sales of Nintendo console systems consistently fell short of DFC Intelligence estimates.\u00a0 The 2012 launch of the Wii U proved to be the nadir, as it underperformed even the most pessimistic estimates.<\/p>\n
The Switch, launched in 2017, has been a different story.\u00a0 Sales started out strong but were not overwhelming.\u00a0 In 2018, sales met DFC forecasts, but only because of a strong November and December.<\/p>\n
It is only in 2019 that the Switch has really shined.\u00a0 While the PlayStation 4 and Xbox One are slowing in anticipation of new systems, the Switch is stealing the spotlight.<\/p>\n
Perhaps most interesting about the Switch\u2019s performance is how it is reintroducing the Nintendo brand to a new generation of consumers.\u00a0 Nintendo has always been seen as more of a kid\u2019s game system.\u00a0 However, the Switch is proving surprisingly popular among teenagers.<\/p>\n
Among the current generation of teenagers, the Nintendo brand is relatively fresh.\u00a0 The poor performance of the Wii U actually works as a positive for this audience.\u00a0 Of course, it really helps that the Switch fits into today\u2019s mobile lifestyle.<\/p>\n
Portability is huge for the Switch.\u00a0 The ability to take the system on the road has proven to be a game-changer.\u00a0 In high schools around the country, lunchtime battles of Super Smash Bros are commonplace.<\/p>\n
Mobile game platforms like the DS\/3DS sold a large number of units because it was common for a single household to own multiple systems.\u00a0 The September launch of the Nintendo Switch Lite directly targets families where each child needs their own system.\u00a0 According to Nintendo, 43% of initial Switch Lite purchasers already owned a Switch.<\/p>\n
Another interesting trend with the Switch\u2019s portability has been more genre diversity.\u00a0 The new RPG Pokemon titles, Sword and Shield, have historically worked best on Nintendo portable systems.\u00a0 The same goes for turn-based strategy games like the recent Switch release Fire Emblem: Three Houses.<\/p>\n
Japanese publishers that have struggled in recent years could benefit from the success of the Switch. \u00a0The rise of first-person shooters and eSports has been a major growth driver for the video game industry.\u00a0 However, they have also alienated a large portion of the audience who is not as into the hyper-competitive nature of such games. \u00a0Japanese companies have simply not been strong in the intense action category.<\/p>\n
The recent Ring Fit Adventure is a perfect example of the new Nintendo.\u00a0 Ring Fit Adventure is an $80 fitness product that also works as a Japanese RPG.\u00a0 Unlike the Wii Fit Balance Board, released over a decade ago, this game is designed directly for video game fans.\u00a0 The target demographic is teenagers and young adults.<\/p>\n
The success of Nintendo raises the question of what will happen with new systems from Sony and Microsoft.\u00a0 Of course, the first question is, will the PlayStation 5 or Project Scarlett have any mobile features?\u00a0 This could be a critical distinguishing feature for those systems.<\/p>\n
Sony and Microsoft have both struggled with mobile devices.\u00a0 The Sony PlayStation Vita was an excellent system but struggled to find an audience.\u00a0 Microsoft has made all kinds of efforts with mobile devices.\u00a0 However, products like the recent Surface Pro X are designed more for high-end computing and have received lukewarm reviews.<\/p>\n
Today\u2019s consumers use multiple devices.\u00a0 The choice of a video game system is not necessarily an either-or decision.\u00a0 With the Switch, Nintendo has shown that is possible to have success not catering to the high-end action-focused audience.<\/p>\n","protected":false},"excerpt":{"rendered":"
For the past decade, Nintendo has underperformed.\u00a0 This has changed recently as the Nintendo Switch has been a star performer the past year.\u00a0 Going into holiday 2019, and the end of a rough decade for the company, Nintendo is looking stronger than ever. The Wii, launched in 2006, was Nintendo\u2019s most successful console system, eventually […]<\/p>\n","protected":false},"author":4,"featured_media":17164,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[168,56],"tags":[6],"_links":{"self":[{"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/posts\/17163"}],"collection":[{"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/comments?post=17163"}],"version-history":[{"count":1,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/posts\/17163\/revisions"}],"predecessor-version":[{"id":17165,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/posts\/17163\/revisions\/17165"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/media\/17164"}],"wp:attachment":[{"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/media?parent=17163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/categories?post=17163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/tags?post=17163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}