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If Nintendo's successful devices relied on heavy western 3rd party support, I'd be concerned for the Switch's future. But since the best selling titles on Nintendo platforms are historically:

A.) Nintendo 1st Party Games

B.) Japanese 3rd Party Games

and

C.) Indie Games

I feel Nintendo will have it's own little niche area to itself. I don't need my Switch to be a PS5. I'm excited to see what developers get out of it as the console is very young. Square Enix has created a specific division just for Switch titles, Level 5 said all their upcoming games will be made with Switch in mind, Sega, Capcom, etc. have to support it in Japan by default. It'll be fine.

Now, would it be nice to have day and date AAA western 3rd party games on Switch? Hell yeah, but it's not part of Nintendo's successful DNA, for the most part. I see the Switch performing like the SNES, DS, Gameboy and 3DS. It'll continue to get great 1st party support from their rich library of IP, Japanese 3rd parties will make software to appeal to the Switch as it is dominating in Japan, and indie titles continue to sell the best on the Switch, even more than others combined. And that's fine because those platforms seem to favor more western styled, AAA games. I feel Nintendo just needs to focus on pleasing their largest demographic.

A lot of people may not see it now, but I think Switch, even in the midst of PS5 and Xbox 2 will have a bright future. It probably wont' get many next gen games at all, but it will get enough support because the device is selling well.