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Forums - Sales Discussion - Switch Sales Predictions: Open Your Eyes - UPDATE: Switch LTD Shipments Reach 111.08m by June 30th, Forecast for Current Fiscal Year Remains at 21.0m

StarDoor said:

This is heavily flawed reasoning. It's like saying that, because Uncharted 2 was a direct sequel to Uncharted, only people who played the first will buy the sequel. Clearly, this did not happen, as the sequel sold better than the original.

The overlap of people buying games of the same IP is not 100%.

Uncharted was different to those established franchises, Uncharted used to be a growing IP in the last generation but can the same be said for many of Nintendo's existing IPs ? (Nintendo IPs declined going from WII/DS > WIIU/3DS, remains to be seen if it will increase going from WIIU/3DS > Switch) 

StarDoor said:

First of all, FireRed/LeafGreen weren't their own generation. The GBA only had one generation of Pokémon games based on Ruby/Sapphire.

Second of all, it's quite premature to declare that Sun/Moon sold less X/Y when Sun and Moon released less than a year ago and are still on the market. According to Nintendo's financial reports:

Pokémon X/Y: 16.15 million (+40k)
Pokémon Sun/Moon: 15.67 million (+230k)

The difference is less than half a million, and Sun/Moon will only close the gap from here.

Finally, you're still making the assumption that every single person who bought Sun/Moon also bought X/Y, but that's not how sales work.

From my personal experience, some of my friends only ever bought Omega Ruby/Alpha Sapphire, and not either of the main games. Similarly, some of my friends got X/Y and ORAS, but not SuMo. And some of my friends bought a 3DS in 2016 just for SuMo.

Games of the same IP can have different audience appeal. I know it may seem strange from our enthusiast perspective, but most people don't buy every single game in a series. SuMo pushed 3DS sales, and it's easy to see this because the 3DS was actually up year-on-year in 2016 according to Nintendo's shipment data.

But even after discounting FireRed/LeafGreen, the trend is the second iteration sells less than the first release on the same platform so that basis doesn't change ... 

I don't assume that literally EVERY single person who has bought the current Pokemon games to have bought previous Pokemon games but I do imagine that Pokemon games have a fairly high retention rate of 80+% going into the next releases and the changing demographics behind Pokemon's audience seems to match my assertion as Pokemon customers are growing older ... 

Games of the same IP having different audience appeal is not new ... (as demographics and content keep changing so do the customers as well)

StarDoor said:

If the 3DS is about to pass 70 million on the strength of the IPs I listed, in what world is the Switch going to sell only 40 million despite being better hardware with better software support? The Wii sold 101 million and the DS sold 154 million because of Nintendo's support, and that was when they had to split their resources in half. Now they don't even have that handicap. They could put all of the 3DS + Wii U IPs on Switch and still have plenty of time to spare for new IPs.

Did I claim that the Switch was only going to sell 40M units ? 

"40M units sounds like it's obviously in the cards at this point but by the end of 2019, we'll have seen the majority of what the most the Switch already has to offer with existing IPs ... " 

No, you misunderstood since you didn't take the time to interpret the context of my statement as 'the Switch will sell a minimum of 40M units' ...

Well as for the downsides the Switch still has a pricetag of $299 (maybe in the future it could be $249 with the Switch mini) but I guess that's not a realistic concern since Nintendo has a monopoly on portable gaming and better software support is arguable since the Switch has gotten more powerful and Nintendo has to deal with a new microarchitecture which adds cost to game development ... 

StarDoor said:

It seems to me that the reason you're so pessimistic is because you personally don't like the Switch. I don't have an issue with you having your own preferences, but it doesn't make sense to base your predictions on your feelings instead of on observable reality. The reality is that the Switch is experiencing a wildly more positive reception than the 3DS, outperforming it in the same timeframe in both sales and game library. The Switch's advantage in game library will only grow with time, so it is only logical that the sales lead will increase as long as stock allows it. This year will likely be close thanks to the parts shortage and Nintendo's conservative production capabilities, but next year the Switch will leave the 3DS in the dust. Nintendo could make 26 million Wii consoles and 30 million DS consoles in a single year. I don't know if the Switch will reach quite those numbers, but it doesn't need to. All it needs is a full, six-year lifecycle.

I don't remember who first used this kind of progression, but it sums up the situation perfectly:

Imagine Splatoon on 3DS.
Imagine Pokémon Diamond and Pearl on Wii.
Imagine Ocarina of Time on Game Boy.
That's what the Switch is.

As Rol has so eloquently stated, time will prove me (and him) right.

What ? LOL, don't just accuse others of partisanship in your argument otherwise you're the one putting feelings on the line instead of your opposition ... (Are you really going raise someone else's preferences, feelings and even go as far as to implicate their possibly in delusion even though someone as diligent as me took time out of their day to cross reference information ?)

It still remains to be seen if the Switch will keep up the 3DS's price advantage and software potential (drought was an issue on 3DS but once the software was sorted out it picked up pace but the Switch doesn't have this issue) ... 

Nintendo handhelds usually have 5 year life cycles so next generation will coincide nicely with the release of the successor to PS4/X1 in 2021 and the successor to the Switch in 2022 ... 



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The Switch will probably have better Japanese support than the Wii (eventually) with less third party support from Western developers than Wii. In 2007-2010, developers could support PSP, DS, Wii, or PS3 in Japan. This era, 3DS is already declining, Vita is fairly irrelevant, and PS4 is probably going to peak this year and next year in Japan for software. We don't seem to be getting a 3DS or Vita successor anytime soon either.

So what would you do if you were a Japanese company and wanted to release games in Japan...?



People are difficult to govern because they have too much knowledge.

When there are more laws, there are more criminals.

- Lao Tzu

Good job... thanks!



Switch!!!

RolStoppable said:

1. You commit a common hardware sales fallacy for software sales. It's the assumption that the trend of decline in the Wii U and 3DS era is likely to continue, but a new generation constitutes a reset of image and perception. Switch hardware and software has yet to exceed the totals of the previous generation, but the pace points towards an increase. If the hardware sells better, it's very probable that the software will rise as well. The example of Breath of the Wild is already one of a growing IP, even Mario Kart 8 Deluxe is likely to outsell the original version of the game.

Yes, a new platform can obviously reset image and perception but IP growth is different and I didn't think that there would necessarily be a decline either ... (I thought that the strength of Nintendo IPs would have either held constant or maybe grow by as much as 15% with the Switch) 

The pace does point to an increase however it's hard to dissociate how much of that is due to a better software output so far or just more pure innate interest in the hardware remains to be known ... (MK7, SM3DL, OoT Remake, dogs + cats (not sure this IP matters anymore), MH Tri vs MK8D, SMO, BotW, ARMS, Splatoon 2, MH XX is the tally so far between the 3DS and the Switch but it does look like the Switch has the early advantage) 

RolStoppable said:

2. The majority of Nintendo IPs having a presence on a console after three years isn't a cause for concern for the long term prospects. Nintendo's handhelds in particular have had healthy sales curves over their lives and you realize that Nintendo now holds a monopoly in that segment of the market again. You ask the question how Switch can sustain high sales after year 3, but the real question is why wouldn't it when it is the only option for consumers and has already built a rocksolid library of games, thanks to the majority of Nintendo IPs already having a presence. Since Switch is a portable console, hardware revisions are a given. Revisions are known to drive hardware sales. You are aware that Switch's hybrid nature comes with advantages, but you aren't thinking it through to the end if you have such doubts.

Holding a monopoly is not an argument for the implication of growth. I would argue that Nintendo already held a monopoly with the 3DS with a market share of 80+% but that also assumes that of what little userbase Sony had with their portables doesn't overlap with being customers for Nintendo handhelds too so Nintendo could very well have higher penetration rates than what market share data would suggest ... (very little to be had on capitalizing a weak competitor such as Sony in portable gaming) 

Nintendo still has to give an incentives over the platforms lifetime for consumers to purchase the Switch just like they did for the 3DS even well after the fact that Sony is gone ... (Just like how Sony had to get games for the PS4 that customers wanted in Japan despite practically having a monopoly with home consoles and they'll still most likely only get PS3 numbers over there)

I am well aware of the Switch's so called 'hybrid' nature and all of it's advantages or drawbacks. Revisions are going to become more scarce in the future as Moore's Law slows down and I realistically expect at most two paths for the Switch to take ... (the first being the 'Switch Pro' and the second being the 'Switch Slim' both using the same chips designed by Nvidia and manufactured on TSMC's 7nm transistor technology, Switch Pro will have the same form factor while sporting a more powerful chip and the Switch Slim with a smaller form factor for lower power consumption envelope and then there's the third possibility with a full Switch home console too)

RolStoppable said:

3. There isn't a single Nintendo handheld that had a lifecycle of five years. The Game Boy had nine years (1989-1998), the GBC update had 1998-2001, the GBA was early 2001 to late 2004 (cut short only because Nintendo had to react to Sony's PSP), the DS lasted a good six years and the 3DS also lasted six. At the same time you overestimate the lifecycles of Sony and Microsoft consoles. But most importantly, why did you even write that final paragraph that implies that Switch belongs to the same generation as the PS4 and XB1? Looks like StarDoor's accusation that your feelings are getting in your way isn't wrong. You expect Switch's lifecycle to be shorter than the 3DS's for no logical reason.

Of the 5 handhelds including the GBC (which had exclusive games too for it) from 1989 to 2016, Nintendo handhelds held an average lifespan of 5.4 years ... (DS lasted for 65 months which translates to 5.4 years and 3DS lasted 70 months which translates to 5.8 years which isn't quite 6 years) 

I'm not overestimating the life cycle of Sony or Microsoft consoles. If anything I think the life cycles of home consoles DID drastically change from 5/6 years to 7/8. (I honestly think I'm doing it right for home consoles when we consider that the PS3 lasted for 7 years straight and Xbox 360 lasted for 8 years. It looks like both of them are waiting as long as possible to capitalize on more advanced transistor technology gains and so far the consensus seems to point to late 2020 or late 2021 for the next generation HD twins

FWIW, I expect the Switch to have a similar life cycle which is 5 and a half years ... (my claim of a 2022 release still matches with the data we have so far at hand so I'm not sure why you're grilling me for it when the successor to the Switch could very well launch in late 2022)

If my feelings are getting in the way then the same probably applies you guys too since you were vested enough to mention it ... (those with partisanship can also raise valid points so the debate isn't impeded either way, in fact that's how it goes most of the time since one can't avoid it) 

RolStoppable said:

I do not remember your original predictions/expectations for Switch, but I think you had to increase them already. People who have been terribly wrong commonly do this in steps, because there's a denial to have been so way off base. You have probably gone from "Switch will be lucky to reach 40m lifetime" to the current "40m looks like a lock now, but it might not be much more" because you've originally fallen victim to the AAA third party fallacy and didn't grasp the full extent of Nintendo having a monopoly over the handheld market again. Like I said, I don't remember the exact details of your old post, but I am quite sure that they had a very pessimistic outlook for Switch.

I did not have much originally in the predictions with regards to the Switch but so far I'm expecting at least a north of 40+M units and I'm still uncertain how much further it can go ...

And maybe I did fall victim to the AAA fallacy but I don't think I fell into the third party trap yet and Nintendo had a monopoly with handhelds regardless of whether or not another party like Sony existed on that front as we can see with the 3DS ... 

You don't remember because most likely I was only watching from the sidelines for the most part ... (can't really strike an invisible man such as myself but I do have some very hard questions for the Switch)



fatslob-:O said:

Of the 5 handhelds including the GBC (which had exclusive games too for it) from 1989 to 2016, Nintendo handhelds held an average lifespan of 5.4 years ... (DS lasted for 65 months which translates to 5.4 years and 3DS lasted 70 months which translates to 5.8 years which isn't quite 6 years) 

I'm not overestimating the life cycle of Sony or Microsoft consoles. If anything I think the life cycles of home consoles DID drastically change from 5/6 years to 7/8. (I honestly think I'm doing it right for home consoles when we consider that the PS3 lasted for 7 years straight and Xbox 360 lasted for 8 years. It looks like both of them are waiting as long as possible to capitalize on more advanced transistor technology gains and so far the consensus seems to point to late 2020 or late 2021 for the next generation HD twins

FWIW, I expect the Switch to have a similar life cycle which is 5 and a half years ... (my claim of a 2022 release still matches with the data we have so far at hand so I'm not sure why you're grilling me for it when the successor to the Switch could very well launch in late 2022)

?

DS lasted from November 2004 to February 2011, which is 75 months, or 6 years and 3 months.

3DS lasted from February 2011 to March 2017, but it launched at the very end of February anyway, so we can call that an even 6 years.



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Thanks for being patient with me so far rol ... 

RolStoppable said:

I don't think there's any progress in this discussion to be made on questions like by how many percent IPs are going to grow, but I'll address other points.

Holding a monopoly makes things easier. Vita's worldwide performance may have been small, but what it had in Japan was sufficient for third parties to devote time to the system. Those software titles didn't include big sellers, but it's supplemental material that helps to make the library more robust. Or in other words, it reduces the probability for software droughts to happen. And this is really a key point in the Switch's prospects, because both the 3DS and Wii U suffered from droughts at various stages in their lives. The 3DS and Vita libraries were also quite different, and if sequels to Vita games and their sequels move to Nintendo's platform, consumers are likely to follow. Granted, absorbing the Vita consumer base doesn't result in a big number, but that's still several million people Sony gave up on.

Nintendo isn't going to stop making Switch games. I don't know why you say such things as "Nintendo still has to give incentives in a monopoly." You are right, but it's a Captain Obvious statement that is redundant because it isn't something that is or should be in doubt. Your comments regarding revisions fall into the same category. You frame it in a way that implies concern, but somehow you still come up with three options. It's as if you find it hard to concede that Nintendo has a winner on their hands.

StarDoor already pointed out that your month counts for the lifecycles of the DS and 3DS are wrong. What I am going to point out is that you are using a double standard. For Switch you take an average of all Nintendo handhelds to project the length of its lifecycle, but for the PS4 and XB1 you only use the previous generation. In all instances you ignore the unique circumstances that led to lifecycles of different lengths. That Sony and Microsoft kept the PS3 and 360 on the market for as long as possible wasn't motivated by waiting for better technology to be ready, rather it was because both suffered losses in the billions early in the generation and wanted to make back as much money as possible.

The one thing that shows with Switch is that Nintendo wants to not repeat mistakes of the past. The software release schedule has already been talked about, but there has also been an investor-related statement by Kimishima that the length of Switch's lifecycle will be determined by market demand. This makes sense in relation to the Wii where Nintendo moved on too quickly. I think the next Just Dance is still releasing for the Wii; if Ubisoft can still sell Wii software, you better believe that Nintendo would have had no problem to benefit from properly supporting the Wii from 2011 all the way through 2013. Many Wii U games could have easily been Wii titles, so this isn't much of a fantasy scenario. The big caveat with the length of Switch's lifecycle is that Nintendo may get arrogant because of its success and put out a new (and possibly nonsensical) console early, so that's the one way how I could see your expectation of a 2022 launch come true.

I can see your point in software library robustness but the Switch is doing fine as it is for software output in it's first year so I assume that Nintendo consolidating as much support as possible from whatever scraps Sony had left is just for insurance ? (All of this still hinges on the possibility of whether or not that support will mostly undividely transfer to the Switch. I checked all of the PS Vita's titles that was able to make a dent (clear 300K) with this sites data and surprisingly enough a relatively high portion of the games that have sold over 300K appear to be either IPs owned by Sony or has a history of being exclusive to Sony platforms from publishers like Namco Bandai and Sega both of which also frequently releases PS4 versions of these games so I'm not sure how that mess will play out with the PS4.) There's multiple variables to account for before we factor in whether or not a significant porportion of Vita's userbase will matter for selling Switch hardware like a developer's choice of platform, how sharing these games with the PS4 will affect the outcome and how much portability matters to these customers ... 

I don't think Nintendo are going to stop making Switch games FWIW, it's how I wonder the Switch is going to grow beyond already having it's biggest established IPs. (maybe it'll be time to introduce a new AAA IP ?) 

Revisions are mostly dependent on the transistor technology and usually come with cost savings (we've exhausted this until the next generation starts, most chip designers are transitioning for reasons because of pure performance and perf/power rather than perf/$) so most of the cost savings on a new possible Switch revision will come from making the other components smaller like the motherboard, display, battery, casing and cooling solution instead of the memory or logic chips. (cost structure is arguably more tighter this gen since these chips are not getting cheaper to produce, the only thing console hardware designers can do so far is take advantage of the lower power consumption to lower the price and the Switch is probably not ever going to sell for sub-$149 like the 3DS able was through the 2DS for as low as $79) 

I'm also not sure if my imagination that we'll get 3 new Switch SKUs will translate to reality either ... (Why would Nintendo ever want to make a Switch home console to sacrifice one of it's biggest selling point known as portability ? So that Nintendo can appeal to it's premium hungry customers that usually don't care about hardware power other than for the possibility that they do for Nintendo games ? How are some games going to function without the touchscreen if Nintendo decides to not include a controller with an integrated touchscreen ? These doubts are exactly why I can probably rule out the idea of a Switch home console altogether and reiterate that there is realistically at most 2 possible SKUs on the horizon or they could decide not to make my theoretical 'Switch Pro' and only make a moderately cheaper 'Switch Slim'.) 

I stand corrected for DS but don't stand corrected for 3DS depending the differing supply chains at the start of each region. I could very well have a double standard but I'd argue my prediction is more based on a strange heuristic because home consoles really do seem to have longer lifespans now ... (consensus is still 2020 or 2021 for new home consoles) 

Recouping cost is a valid motivation but it can most definitely be more than just that because sooner or later we'll come to the point where chip manufacturing technology will stagnate. Digital technology can't keep growing on an exponential rate forever so we'll eventually come to a halt and that day is approaching fast with the next generation most likely being the last one since there's no cost advantage to be had in releasing new and more powerful hardware ... (this is most likely going to be our 'post-Silicon' future where our consumption for digital devices will be drastically reduced shortly thereafter, in this ironic twist of fate just as how solid state physics predicted vast possibilities it'll come to abrupt end) 

I have another reason why the Switch may launch in 2022 and it maybe because Nintendo could afford a slightly shorter hardware cycle if they decide they want their next system to be backwards compatible and Nvidia will be ready to deliver the new SoCs in a strict schedule ... 



We'll see how it plays out. I think it will do around 30 to 40 mil, could be lower tbh. It's IPs mainly appeal to a niche part of the market (gamers) outside of pokemon and it's price is too high. Without at least decent 3rd party support (or new & different IPs) to supplement it's staple of 1st party games, it won't be able to grab the attention of the general gamer. Threads like this make for fun necros.



Aeolus451 said:
We'll see how it plays out. I think it will do around 30 to 40 mil, could be lower tbh. It's IPs mainly appeal to a niche part of the market (gamers) outside of pokemon and it's price is too high. Without at least decent 3rd party support (or new & different IPs) to supplement it's staple of 1st party games, it won't be able to grab the attention of the general gamer. Threads like this make for fun necros.

What are you on about, sales of Smash, Mario, Zelda, Animal Crossing, Tomodachi, Splatoon and so on highlight that outside of Pokemon their IPs are anything but niche and as far as price goes the market has shown it's not too high regardless of the opinions of people on forums. The sales have shown it has grabbed the attention of the general gamer just fine.



Aeolus451 said:
We'll see how it plays out. I think it will do around 30 to 40 mil, could be lower tbh. It's IPs mainly appeal to a niche part of the market (gamers) outside of pokemon and it's price is too high. Without at least decent 3rd party support (or new & different IPs) to supplement it's staple of 1st party games, it won't be able to grab the attention of the general gamer. Threads like this make for fun necros.



Aeolus451 said:
We'll see how it plays out. I think it will do around 30 to 40 mil, could be lower tbh. It's IPs mainly appeal to a niche part of the market (gamers) outside of pokemon and it's price is too high. Without at least decent 3rd party support (or new & different IPs) to supplement it's staple of 1st party games, it won't be able to grab the attention of the general gamer. Threads like this make for fun necros.

I know we already had this conversation before, but your points make even less sense now. You say it appeals to a niche part of the market - "gamers" - but Nintendo games have a much wider demographic than any other and beyond that "gamers" take up a majority of the console market. And then you say it wont sell to the general gamer. What?

 

Nintendo have so many successful franchises that sell widely different to the point that people pit games in different tiers. Even though this is logical it often goes to the point of ridiculousness - like when people said Prime 4 was "too niche" to be made, or that Zelda should have been Holiday title because "its not that big" or when people thought only Pokemon could save the Switch. Pokemon is probably Nintendos most consistent selling series but honestly people forget that Mario Kart and Smash bros can do about the same as pokemon. Both franchises have had an increase in attach rate and will probably sell 13-15 mil depending on if they are original games or not. Add to that Zeldas market share increasing to 9-11 mil, and it is very possible animal crossing and a 3d mario will meet Pokemon. Splatoon 2 is also debatable. 

 

Wyrdness said:
Aeolus451 said:
We'll see how it plays out. I think it will do around 30 to 40 mil, could be lower tbh. It's IPs mainly appeal to a niche part of the market (gamers) outside of pokemon and it's price is too high. Without at least decent 3rd party support (or new & different IPs) to supplement it's staple of 1st party games, it won't be able to grab the attention of the general gamer. Threads like this make for fun necros.

What are you on about, sales of Smash, Mario, Zelda, Animal Crossing, Tomodachi, Splatoon and so on highlight that outside of Pokemon their IPs are anything but niche and as far as price goes the market has shown it's not too high regardless of the opinions of people on forums. The sales have shown it has grabbed the attention of the general gamer just fine.

He says stuff like this consistently. I d9nt mind an... artistic approach to the word niche but this is too far