The Switch Could Be A Blessing & A Curse For Nintendo

Millennials At Work

After the absolute fail that was Wii U, it was hard to envision a world where Nintendo would be relevant again in the gaming industry. Obviously, the name would live on with titles like Super Mario and original game systems like N64 and Super Nintendo, but it seemed like the Japan-based company was falling way behind other developers such as Sony and Microsoft. Well, the Nintendo Switch has changed everyone’s minds about that, considering it sold just under five million units in four months.

The Upside

Nintendo Switch is a hybrid gaming console that can be played on the big screen at home or as a handheld portable device on-the-go. After selling 2.73 million units out of the gate, Nintendo followed it up with another 1.97 million consoles sold in the second fiscal quarter that ended in June, bringing total sales-to-date to an impressive 4.7 million units. The company believes it will reach the 10 million mark by year’s end.

While the selection remains limited, Switch game sales outperformed expectations as well. Nintendo has sold 8.14 million games, which comes out to an average of 1.75 games per unit. Analysts were originally projecting between six and seven million games sold at this point.

The Downside

Nintendo seems to have resurrected itself with the Switch, but there are still a lot of things that can go wrong moving forward. First and foremost, Nintendo wanted to play it safe by not overproducing the Switch, considering what happened with the Wii U. Well, the only issue with that is the overwhelming success of the Switch, and their inability to keep up with demand. It’s been nearly impossible to purchase a Switch in most locations because they have been sold out for months.

Another big problem could be with the games themselves. Video game developers have been hesitant to partner with Nintendo since the collapse of Wii, and Nintendo is not helping themselves by creating exclusive games for the Switch. To this point, Switch owners have been primarily buying Nintendo titles, which could discourage third-party developers from devoting money and resources to the creation of Switch games.