Why are third party games selling well on Switch?

[MajorMalfunction]

TheMisterManGuy said:

MajorMalfunction said:

I need receipts. Octopath has broken 1 million, Skyrim has broken 1 million. Almost 20 million sold and only 2 third party games breaking a million is not an indicator that games universally sell well on Switch. I'll give you Nintendo games, no doubt, but third parties are high and dry for the most part. IMO, it's not getting every third party title because it doesn't make sense when you account for opportunity costs of money and development man-hours. It's going to get some third party games that sell well, and some that don't. The market will correct and stop making products that don't sell.

You don't need to sell a million to be successful. It all depends on development costs of the game and how much needs to be sold to break even. Many indies on Switch were considered a massive success at only 250-400k. Capcom considered Ultra Street Fighter II's 400k sales to be a hit. 

Indies are generally lower-cost endeavours wrt. developing and publishing. 400K sales is a hit SF2 because it's thirty years old. AAA doesn't give a shit. They make 27 million off 1m sales. Publishing is 20m upfront, net profit is 7m. Same revenue on PS4XB1, but you only spend 12m. If you're a business, what would you choose? Unless the market is saturated, I cannot in good conscience pick NSW. It just doesn't make sense to me. We haven't even spent a cent on development and NSW is already far behind in terms of opportunity cost.