Now that the new financial results are out for Nintendo, we can see that the Switch 2 has done well in hardware sales, but the software sales paint a complex picture.
First off, the good news is that the Switch 2 managed 10.36 million sales of hardware, with games like Mario Kart World selling 9.57 million units since launch, which amounts to an insane 93% attach rate. Not to mention that Donkey Kong Bananza also did well with 3.49 million units sold.
However, the total software sales of the Switch 2 during this period amounted to 20.62 million units. That may sound good, but the original Switch managed 61.57 million software sales in the same period, proving that the biggest competitor to the Switch 2 is, in fact, the Switch.
Now, those Switch software sales are a bit down from the previous year, about 12.4%, but the Switch is still a software sales powerhouse, which is what game consoles are all about.
Back when the Switch launched in 2017, Nintendo’s other handheld was the excellent 3DS. However, at that point in the 3DS’ lifecycle, its audience was much more to do with kids than gamers.
The 3DS was also cheaper, as were the games. It was also rugged in its construction and had a great battery life.
The Switch, in comparison, was much more of a higher-end console, and that showed in the type of games it launched with, such as Zelda: Breath of the Wild, which was a huge and complex open-world game.
This time around, families and gamers already have Switches. The kids now also have the Switch Lite at a lower price point and again with more rugged construction, as well as a solid battery life.
So, making the argument to buy a new Switch 2 is harder when the Switch is already in the places that Nintendo wants to capture, in terms of market share.
It also doesn’t help that Nintendo has definitely gone more corporate since the passing of Satoru Iwata.
For one, Iwata was a self-confessed gamer, and for another, he embraced functional innovation and risk-taking.
After the failed Wii U, the Switch looked like a crazy bet, but it paid off because the focus was on adding something new to gaming rather than just more of the same.
The Switch 2 is really just an upgraded Switch, and the increase in price of Switch 2 games doesn’t exactly help either.
In any case, it seems that the Switch 2 hardware demand is still sky high, but it’s the software sales that will win this race, and this time it looks like it will be harder won.
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