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Yes. As usual, people need to remember that Switch is a hybrid and therefore dips into both of the previously separated home console and handheld markets. Switch is still far away from hitting saturation in the home market (only ~50m hybrids sold so far) and on the handheld side it's in its infancy (less than a year of availability at €200).

The SKU setup of Switch makes it rather easy to sell multiple consoles to the same household, and that will become increasingly easier as prices go down; which they won't soon because the SKUs have yet to hit their saturation points at their current prices. I see way too many people who expect a Switch sales curve where price drops will be more or less completely ineffective. All too often Switch sales predictions anticipate a collapse despite no signs for such an event happening.

There are also the inevitable hardware revisions and the nature of portable consoles is weardown by people accidentally scratching a screen or dropping the system, so an all-around improved new version of the console is a bigger incentive to spend money on a replacement than the prospect of buying exactly the same console again. As personalized items, new color variations and special editions of portable consoles tend to generate sales too.

In any case, Nintendo still has almost all options left to prolong sales of Switch hardware, so the current point in time where Switch is 3.5 years old isn't one of being halfway through the lifecycle already. What usually stumps people is their assumption that there's no possible way that a Nintendo console could have a longer shelf life than a PS console, and they stick with that assumption despite all things lining up to the contrary.

Legend11 correctly predicted that GTA IV (360+PS3) would outsell SSBB. I was wrong.

A Biased Review Reloaded / Open Your Eyes / Switch Shipments