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Y’all aren’t gonna like hearing this…but I’m gonna drop some thoughts. If Nintendo keeps producing NSW units & games (at a rate of >5mil/year) as NSW2 is releasing, I believe NSW2 will not start off as strong as it should. Maybe a strong launch, but the legs will likely be significantly lower than anticipated. I say this b/c the reason behind Wii U’s complete collapse entering 2013 could have a fair amount to do with consumers seeing Wii U as the premium option for playing Wii games (just as NSW2 will be the premium option for NSW games) combined with looking at the extreme discrepancy in price ($300/$350 v. $50-100? If you just want to play some Wii games, the choice is obvious.). Not to say NSW2 will flop, though it might experience a fair amount of lost sale potential IF Nintendo chooses to push NSW further.

There is precedent for this market behavior: PS2 v PS3 (Sony responded by slashing PS2 & PS3 production entering the launch of PS4, and slashing PS4 production entering the launch of PS5), Wii v Wii U, NES v SNES, SNES v N64 (in JP), 3DS v NSW (yes, I believe the former did eat away at NSW sales up until 2019), etc.