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Barkley on 21 September 2019
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The_Liquid_Laser said:
Barkley said:

Not really because the Switch is not in direct competition with the PS5/Scarlett, just as it isn't with PS4/XBO.

"Direct competition is a situation in which two or more businesses offer products or services that are essentially the same; as such, the businesses are competing for the same potential market."

"Indirect competition is the conflict between vendors whose products or services are not the same but that could satisfy the same consumer need."

Because they are Indirect competitors the sales impact the PS5/Scarlett will have on the Switch is negligible and the impact Switch will have on PS5/Scarlett sales is also negligible. This has already been proven by the Switch launching to fantastic sales of 14m, while in that same year the PS4 had it's best year by far. Switch sales do not detract from PS4/XBO sales and will not detract from PS5/Scarlett sales. 

Sony/MS don't need to worry about the Switch and Nintendo don't need to worry about the PS5 or Scarlett.

PS5/Scarlett will be even less similar to the Switch than the PS4/XBO are.

Switch and PS5 and Scarlett will all be in direct competition with each other.  

Switch and PS5 are in direct competition.  They are both home console systems.

It doesn't matter that they are both "home console systems" that doesn't mean they are in direct competition. They will appeal to a different potential market because they are very different products with different libraries and experiences.

PlayStation and Xbox offer the same thing, Nintendo offers something different. It doesn't matter how large the install base for Switch is, and it doesn't matter what games the Switch gets.

The market that buys Fifa, CoD, GTA, Assassins Creed, Red Dead Redemption etc will buy them on PlayStation or Xbox. Even if these games were to release on the Switch their sales would be tiny by comparison.

There is a clear demand for western AAA gaming and the experiences that PlayStation/Xbox consoles offer that the Switch can never fulfil, just as there is a clear demand for Nintendo games and the experiences that the Switch offers which PlayStation/Xbox can never fulfil. As neither platform can fulfil the same demands they are not in direct competition.

A person who wants to play CoD but also wants to play Zelda doesn't suddenly lose the desire to play CoD when they buy a Switch, nor do they lose the desire to play Zelda when they purchase a PlayStation/Xbox. Some people desire both, some people only want one, the key is they're different products wanted for different reasons.

"Direct competition is a situation in which two or more businesses offer products or services that are essentially the same;" - PlayStation and Xbox, they offer a very similair experience and both cater to the same market with an emphasis on Western AAA gaming.

"Indirect competition is the conflict between vendors whose products or services are not the same but that could satisfy the same consumer need." - PlayStation/Xbox and Switch. Their products and services are very different but they could satisfy the same consumer need (entertainment/gaming).