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Fight-the-Streets said:
Soundwave said:

Backwards compatibility I think is just differently viewed today than it was 10-12 years ago, especially when it was physical only.

Smartphones again have probably changed consumer behavior and expectation, when you buy a new phone you expect to be able to transfer everything over to the new phone, not just contacts but apps, photos/videos, and software too. Back in the day when you got a new phone, maybe you could transfer like your contact list, but generally getting a new phone was like starting from scratch (and there was a kind of charm to that). I remember having to individually punch in numbers for each of my friends and keeping the old phone around to keep messages.

In the past when backwards compatibility was largely physical software, I think people tended not to use it that much outside of a minority group. Like I used my PS2 to play Final Fantasy IX (PS1 new release at the time) back in the day, but really didn't bother to ever play any other legacy PS1 software on it. Same thing with my 3DS ... I did use it to play DS-era Advance Wars games but I just couldn't be bothered to play any other DS titles. With Wii U/Wii I didn't even bother, loading into the Wii mode was clunky and took too long. Same thing with Wii and GameCube games, I just never really played any GameCube games on it. Itj just felt like a chore to dig out the old games and controllers. 

But digital storefronts/OS just are game changer, it just feels different when you boot up your system and your digital purchases from the previous console are already right there, a click away. The delineation between "this is an old game from the old system" kind of goes away and it becomes like a PC/Steam store where you just have one central library and it doesn't matter if you've bought a new GPU/CPU/entirely new PC.

When you buy a Switch 2, your Switch 1 library (digital) should be right there on the main page and ready to play. Hopefully even enhanced (4K?), though I would guess Nintendo might want a paid patch for that ($10 per game?).

What really changed is that the indie market became so important. Back when it really started in the Wii/PS3/360 era, nobody saw that comming, it was seen just as a cool and interesting niche market. Today, it's not a niche market at all anymore, it's a business defining factor! Basically, what we have now are AAA titels (which are fewer than in the past) and indies, everything in between is either indie (they have a wide price range nowadays) or is perceived as AAA. 

Especially, because the indies are so loved nowadays, there are mainly people who are only or mainly interested in them. For them, the Switch 1 will be good enough for a few years to come and a cheaper alternative for those who just started to get into the indie world. 

Yeah that too, good point. People have a lot more digital content these days. Still I think there was kind of this feeling in the past that when a new system launched, you kinda booted the old system + games off the main TV shelf space (lol) and then once the games were further away you just never bothered to go back to them. This happened with other physical formats too, I'd notice friends once proud VHS collection of movies wouldn't get touched once they got a DVD player, they'd rather even watch a crappier movie on the DVD format than dig through their old VHS tapes. 

Diminishing returns in visuals and blurring of generational lines probably is another factor. In the past it was sort of like "well I've paid $200-$300+ for this new system, I should focus on playing current gen games not outdated "old generation" games. What's the point of buying a new system to play old games on it? But that's not really how I think people view games any more, not to that extent. In the past I think this was a PC centric way of thinking, but now it's part of consoles, something about having the games on an internal storage just feels different for some reason.