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Forums - Nintendo Discussion - Reggie admits Switch was a "Make or Break" product after the poor performance of the Wii U

https://www.nintendolife.com/news/2021/01/reggie_admits_switch_was_a_make_or_break_product_for_nintendo_after_poor_performance_of_wii_u

From the article:

"Nintendo of America's former president, Reggie Fils-Aimé, recently appeared on a New York Gaming Awards Twitch stream earlier this week alongside industry counterparts Jack Tretton (Sony) and Robbie Bach (Microsoft).

Reggie was asked what his defining achievement was during his time at Nintendo and touched on the company's transition - as a collective - from the Wii U generation to the Switch. He summed up the hybrid device as a "make or break product" for Nintendo after the "poor performance" of its previous system.

It comes as no surprise the Switch had to be a "hit", considering the Wii U shifted just over 13 million units during its lifetime.

"You know, Nintendo has done so many innovations in the space... I think what Nintendo did with the Switch, after the poor performance of Wii U, I think to me and what I was part of, that's my lasting memory."

"People forget, when the Wii U launched, the performance over that life cycle was so poor, I mean it was the worst-selling platform, I think maybe Virtual Boy was a little bit worse, but Wii U underperformed pretty radically in the marketplace."

"And when your only business is video games that next had to be successful and the Switch continues to be a dynamic platform - selling exceptionally well. And the ability for the company to come up with the concept, to bring it to life, to bring it to the marketplace, to have not only great first-party content but great third party and independent developer content - that is going to be something I will always be proud of."

"Along with so many of the other things I was part of, but the Switch really was a make or break product for the company and luckily it was a hit."

In contrast to the Wii U, the Switch has already sold 68 million units and is barely halfway into its lifecycle.

While Wii U played host to some fantastic first-party titles, at the time it was a rough period for Nintendo (again, because of sales) and in a lot of cases, it was equally as difficult for fans. Fortunately, as noted by Reggie, the situation has drastically changed since then - with Switch not only hosting quality first-party games but also "great" third party and independent content.

Back in 2019, Reggie described the Wii U as a "failure forward" simply because it led to the creation of the Nintendo Switch."



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Exaggerated and overdramatic.

Nintendo did not have only the Wii U during the previous generation, but also the 3DS. If Switch had failed in the home console market, Nintendo could have focused on their monopoly in the handheld market by releasing a cheaper hardware revision to salvage their business pretty easily, so Switch was never a case of make or break.

Despite a poor financial performance last generation, Nintendo had hardly touched their cash reserves to get through the rough times. Nintendo was not on the brink of reaching their end as a hardware manufacturer, because they had enough money for more than one try.

Reggie is a marketing guy first and foremost. The story of the phoenix rising from the ashes sounds amazing, but the reality wasn't even remotely as dire as he described.



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

A Biased Review Reloaded / Open Your Eyes / Switch Shipments

“People forget, when the Wii U launched, the performance over that life cycle was so poor, I mean it was the worst-selling platform.”

Oh, I don’t think any of us forgot, Reggie.



RolStoppable said:

Exaggerated and overdramatic.

Nintendo did not have only the Wii U during the previous generation, but also the 3DS. If Switch had failed in the home console market, Nintendo could have focused on their monopoly in the handheld market by releasing a cheaper hardware revision to salvage their business pretty easily, so Switch was never a case of make or break.

Despite a poor financial performance last generation, Nintendo had hardly touched their cash reserves to get through the rough times. Nintendo was not on the brink of reaching their end as a hardware manufacturer, because they had enough money for more than one try.

Reggie is a marketing guy first and foremost. The story of the phoenix rising from the ashes sounds amazing, but the reality wasn't even remotely as dire as he described.

I don't think he's referring to the economic side at all, he's just saying that another failure would've made them change their strategy with their home console business, even moreso than with the Switch which is exactly what you're saying, anyway. That is a make or break situation to me. 



Metallox said:

I don't think he's referring to the economic side at all, he's just saying that another failure would've made them change their strategy with their home console business, even moreso than with the Switch which is exactly what you're saying, anyway. That is a make or break situation to me. 

"Make or break" means you either succeed or you are done for good.



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

A Biased Review Reloaded / Open Your Eyes / Switch Shipments

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RolStoppable said:
Metallox said:

I don't think he's referring to the economic side at all, he's just saying that another failure would've made them change their strategy with their home console business, even moreso than with the Switch which is exactly what you're saying, anyway. That is a make or break situation to me. 

"Make or break" means you either succeed or you are done for good.

Fair enough. 



RolStoppable said:

Exaggerated and overdramatic.

Nintendo did not have only the Wii U during the previous generation, but also the 3DS. If Switch had failed in the home console market, Nintendo could have focused on their monopoly in the handheld market by releasing a cheaper hardware revision to salvage their business pretty easily, so Switch was never a case of make or break.

Despite a poor financial performance last generation, Nintendo had hardly touched their cash reserves to get through the rough times. Nintendo was not on the brink of reaching their end as a hardware manufacturer, because they had enough money for more than one try.

Reggie is a marketing guy first and foremost. The story of the phoenix rising from the ashes sounds amazing, but the reality wasn't even remotely as dire as he described.

Hit the nail on the head. Couldn't have said it better myself (literally couldn't) 



If a company can go from printing money to going under after just a single product cycle, then they need better management.
That is *allot* of risk.

This is just highly exaggerated, Nintendo would have still stuck around, they could have survived purely on mini classic consoles probably.



--::{PC Gaming Master Race}::--

The timeline we are in doesn't want Nintendo to fail. They even throwed in a global pandemic which boost the Switch to ensure that.



Pocky Lover Boy! 

RolStoppable said:

Exaggerated and overdramatic.

Nintendo did not have only the Wii U during the previous generation, but also the 3DS. If Switch had failed in the home console market, Nintendo could have focused on their monopoly in the handheld market by releasing a cheaper hardware revision to salvage their business pretty easily, so Switch was never a case of make or break.

Despite a poor financial performance last generation, Nintendo had hardly touched their cash reserves to get through the rough times. Nintendo was not on the brink of reaching their end as a hardware manufacturer, because they had enough money for more than one try.

Reggie is a marketing guy first and foremost. The story of the phoenix rising from the ashes sounds amazing, but the reality wasn't even remotely as dire as he described.

I believe somewhere in the past that they said Nintendo has enough room in the bank to make 3 consecutive flops in a row before they consider dropping out of the home console market.