The common argument against a substantially beefed-up Nintendo Switch is that there's no reason for it, 3rd party games aren't driving Switch sale (look at the charts, basically only Nintendo games are in the top-ten consistently) and Nintendo games themselves don't need the extra power as their strong points are fun, good gameplay and art designs based on creativity rather than technology. The argument thus goes further that even if after the release of PS5/Xbox Series S/X when less and less 3rd party AA-AAA ports will drop to the Switch, it doesn't matter because Nintendo only needs first party and indie games. So far, when an AAA game was ported to the Switch, it made Nintendo smile but ultimately, they don't require them!
I disagree with the above argument because Nintendo always talks about expanding the demography: games that attract more girls/females, non-gamers, senior people, etc. In fact, to expand and maintain new demographics is one of Nintendo's main business strategy. There are so many different demographics or to put it more accurately, player types, so that there are thousands of different reasons why a certain player type is buying a console or not (yet). It is one of Nintendo's core ambition to find out why certain player types haven't bought the Switch yet (leaving economy aside, of course if the Switch would be only $50 many would buy it even if they didn't even want one).
It just so happens that one very important and lucrative (because they usually spend lots of money for gaming products) player type is the so called (hard)core gamer. This is a very technophile player who wants to play his/her games in the best possible way. Therefore, naturally, this type of player is gaming on high-end PC and/or on the technically best available console(s). Naturally, this type of player probably will buy a PS5 and or an Xbox Series X at one point. But a Nintendo Switch? Not so much. unless portable gaming is important for them.
How can Nintendo catch these (hard)core gamers? Well, if the new Nintendo Switch is getting a substantial upgrade, so that 3rd party AA-AAA ports will become easier to make and will run and look generally good, Nintendo will get their attention and if they make enticing marketing campaigns they can bring them in. Of course, the question remains, why should they buy inferior ports of games they already have on their beefy PC and home consoles? Well, it's because the laziness of lying on the couch or bed while playing a fantastic AAA game is just too attractive. People are lazy! It's no secret. It's a strong selling point to sell laziness. Especially, adults in their 30' and 40' just appreciate it if they can come home after all the stress and just lay back and immerse themselves into a fantastic world.
I will never agree that 3rd party AA-AAA games aren't important for Nintendo. They always were and they always will be important for any console maker and streaming provider!
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