So the Switch 2 has been revealed, and it's been a bit of a doozy. I wanted to go back to this thread mainly to read the concerns posted about what it would take for this to be a 3DS style stumble. The result confirms my suspicions - this has certainly been a unique launch. Nintendo has definitely made a few mistakes, but it won't really result in a 3DS style fumble in the end.
Nintendo made two real mistakes here: They priced Mario Kart World at $80 (opening a whole Pandora's Box) and their communication around the product following the Direct has been poor. There are other things people take issue with around the console: The fact that Welcome Tour is $10, voice chat being locked behind NSO, some of Doug Bowser's comments, Breath of the Wild's DLC not being on the cartridge in the Switch 2 Edition, etc. All of this certainly doesn't help it's perception, but - to be frank - they're pretty minor in the grand scheme of things. Ultimately people online have an issue with Nintendo's pricing decisions.
In most other respects, though, I'd say Nintendo did well. The actual Switch 2 presentation was well-recieved, as the pricing issue happened after it. The Switch 2 is getting a brand new huge-looking Mario Kart game at launch followed by a big new 3D platformer a little over a month later. The actual hardware seems to be more capable than what many expected and justifies the price for some. The branding is easy to understand (shouldn't be harder to understand than PlayStation's branding). The central gimmick is mostly "a bigger, better Switch", which it seems to be delivering on. Not just with it's first party games, but seemingly with it's third party support as well (Big games at launch, exclusive FromSoft title, etc.). Awareness of the Nintendo IP is also stronger, considering the billion-dollar movie and amusement parks and museum the company has opened up.
The Switch 2 wont be outselling the Switch, but IMO it was never going to even if it did everything right. I'm expecting more of a PS4 to PS5 style drop. Perhaps a bit more pronounced but it should still be able to break 100 million units when all is said and done. Wonder what you guys think, though.
Yup, I agree. Looking at the list of potential issues in the OP, we had:
- Messing up branding - not an issue, it's as straightforward as it could possibly be.
- Lacking desirable games at launch - not an issue, they are launching with the first successor to one of the bestselling games of all time in a decade, and following up with Donkey Kong, Pokemon, and Metroid over the year. Third parties are bringing some good games at launch and over the year as well.
- Launching without major functionality - not an issue (in fact, this is the most feature complete Nintendo system launch since the GameCube, I would argue). This is a more minor point overall, however.
- Executing on the gimmick poorly - not an issue, since there's no real central or disruptive gimmick, it's just a better version of what everyone already has and loves.
- Messing up on the pricing - this is the big stumble overall. The hardware is priced fairly, but higher than is traditionally accessible to their expanded audiences. The games are priced high. The tech demo having a price at all feels too high. The upgrades added to the base cost of the games feels high. On top of this, Nintendo has taken away several mitigating methods people had on hand to control costs a little. They have not included Switch 2 games in the vouchers program. They have discontinued the Gold Coins program. The costs are adding up, especially in the face of an impending global economic crisis.
So, overall of the four big issues highlighted (and five overall), Nintendo stumbled on one. The pricing is high, and that issue is exacerbated with the economic crisis. However, in the OP, I also said this:
It is imperative for Nintendo to not execute poorly on the Switch successor. Making some mistakes or stumbles is permissible, they have the margin of error for that, but the 3DS launch messed up almost everything, and that is not something Nintendo can afford to repeat - even if their success and audience with the Switch is a lot more sustainable than it was with the DS.
Which I think, overall, they are within the margin of error for. They did make one big mistake, but it's also the easiest one to fix – you can't undo poor branding, taking the time to design a better version of the hardware would take at least a couple of years, and not getting games out on time can be debilitating if you have messed up your software pipeline – Nintendo themselves are proof of this with the Wii U in particular, but also late Wii and early 3DS.
But pricing is easy to reverse. It can be almost immediate, and while there are always considerations to consider – profit margins, revenue forecasts, production bottlenecks, etc. – it's an easy one to pull the trigger on (and it can be an easy way to immediately win back any goodwill).
So yes, I think Nintendo did fine overall. I also agree that the contraction between Switch and Switch 2 will not be as severe as the DS to 3DS contraction that I posited in the OP now. The Switch 2 is an appealing and well made product with straightforward branding, and a great lineup of games. It is desirable, which is actually demonstrated in
all the complaints about it coming back to pricing in some form or the other – which might be the first time in decades that has been true for a Nintendo system. If pricing proves to be a deterrent to its performance in the market – which I don't think it will in the first few months, but will definitely prove to be in the mid to long term – then Nintendo can address it, with price drops if they have to, or discounts, bundles, and in a few years, a presumed cheaper Switch 2 Lite as well.
So yes, overall, they have done fine. I think PS4->PS5 is the trajectory to expect. I would assume ~100-120 million units sold for the Switch 2 overall by the end of its life.