China is Nintendo’s secret weapon in the war with PlayStation and Xbox https://t.co/71JthvxcDb
— Bloomberg (@Business) December 9, 2020
153% Growth in "Other" regions prior quarter
An under-reported fact is that while this year's record breaking Switch performance has been, the Region with the most growth is "Other". Nintendo Switch is already the market leader in South Korea and Taiwan. And the company has seen substantial demand of it's console and games in China, where their local partner Tencent has been pushing their fitness game Ring Fit Adventure since it's official launch in the country this September.
East Asian & Chinese gaming markets are crucial in Nintendo and other Japanese companies future business strategy - when discussing their growth. With Tencent becoming an increasingly involved partner in their attempts to get a foothold in the World's biggest gaming market, earlier in the year it was announced that they become Marvelous's biggest investor and before that they invisted in Platinum Games, both studios with strong ties to Nintendo.
"We will raise funds to develop games for overseas players," said Shuichi Motoda, president of Marvelous, referring to Tencent's capital injection through its investment subsidiary.
While they've also formed strategic partnerships with some of the biggest 3rd Party publishers - Square Enix & Capcom.
Tencent has already confirmed that it is working to bring the cheaper and portable Switch Lite to China in 2021, which will appeal to a more price conscious consumers. This will be the main market driving huge growth for Nintendo in the coming years.
