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Forums - Sales Discussion - China is officially Switch's 4th biggest market

South-East Asia is another huge market: Indonesia, Malaysia, Singapore, Vietnam, Thailand and Philippines have together a huge amount of people. Of course, mostly poor people but still potential to sell some millions.

I can remember that years ago the former Nintendo President, Tatsumi Kimishima, in an investor's Q&A said that they see significant growth in the Middle East region.



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Switch already has a strong presence in the big established markets, the more they can work on breaking into places like China/ROTW, the higher the sales ceiling for the Switch. 

It's already 4 million higher than it would be without China, and that's after just a year of being officially released.



KLAMarine said:

Why just China? Isn't India also a big market?

Not really. If you looks at GDP per Capital, China is around 9K where India is around 2K. Both markets have a lot of people but China is far more prosperous and is on the rise. India isn't and will never be on the same level as China. 



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I've been tracking Suning, one of the largest non-government Chinese B2C retailers with 1600 stores covering over 700 cities of China. 

Ring Fit Bundle has added like over 1.500 reviews in under a week and is currently the top selling video game hardware on their online store. 

Some more info about this an a comparison to how PS4/PS5 are doing on their store. On Amazon.co.jp Switch has only amassed around 60.000 reviews(granted Amazon.co.jp is probably a much smaller part of the Japanese video game market compared to how big Suning is for China). 

Last edited by noshten - on 22 December 2020

noshten said:

I've been tracking Suning, one of the largest non-government Chinese B2C retailers with 1600 stores covering over 700 cities of China. 

Ring Fit Bundle has added like over 1.500 reviews in under a week and is currently the top selling video game hardware on their online store. 

Some more info about this an a comparison to how PS4/PS5 are doing on their store. On Amazon.co.jp Switch has only amassed around 60.000 reviews(granted Amazon.co.jp is probably a much smaller part of the Japanese video game market compared to how big Suning is for China). 

That Ring Fit Bundle is basically printing money.

I'm not sure how well the Switch Lite will do in China though.  The main system sellers there so far are RFA and Mario Kart 8.  RFA needs the base model and Mario Kart 8 is multiplayer which means it's a lot better on the base model.  I think they need to localize something like Animal Crossing or Pokemon to really move the Lite model.



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noshten said:

I've been tracking Suning, one of the largest non-government Chinese B2C retailers with 1600 stores covering over 700 cities of China. 

Ring Fit Bundle has added like over 1.500 reviews in under a week and is currently the top selling video game hardware on their online store. 

Some more info about this an a comparison to how PS4/PS5 are doing on their store. On Amazon.co.jp Switch has only amassed around 60.000 reviews(granted Amazon.co.jp is probably a much smaller part of the Japanese video game market compared to how big Suning is for China). 

Wow, very interesting, I think that this has a huge potential to grow for many years. Ring Fit Adventure is an amazing game. Could this possibly be the birth of a new region being tracked?

I am being hopeful, but The switch is a great system and I wouldn't be surprised if in the future we see a huge bump in sales due to "Other" regions. 

If this works out in any way, I see the switch easily breaking records. I have thought for many years that it will, but if you add something special like this, I see it as a powerful boost.

Thank you for sharing and please keep us updated with any info you get.



Look:

This map about the videogame market is very interesting.

https://twitter.com/elOrdenMundial/status/1340994221210255363?s=09



progstarmac said:

Look:

This map about the videogame market is very interesting.

https://twitter.com/elOrdenMundial/status/1340994221210255363?s=09

Wow, I was not expecting to see this... I know china is huge and the potential is even bigger, but I didn't know it is already matching the US. 

Reading the article, it has something very interesting:

This is the GoogleTranslate:

Within the mainland China is the main market. The Asian giant represents a quarter of total global revenues - around 37,000 million - and more than half of the region. Its magnitude helps to extract data that serve to understand the direction that the industry is taking. Of the 37.9 billion dollars spent by gamers in China, 23 billion will be for mobile video games, about 14.4 billion for computer and about 600 million on console games. The market is eminently mobile and it stands out that 94% of the players who pay for video games spend money on accessories within the game itself.

This basically shows that mobile games is leading this growth, but maybe this could somehow be spilled into a console like the switch that has that mobile flexibility. 

Thank you for sharing @progstarmac



dmillos said:
progstarmac said:

Look:

This map about the videogame market is very interesting.

https://twitter.com/elOrdenMundial/status/1340994221210255363?s=09

Wow, I was not expecting to see this... I know china is huge and the potential is even bigger, but I didn't know it is already matching the US. 

Reading the article, it has something very interesting:

This is the GoogleTranslate:

Within the mainland China is the main market. The Asian giant represents a quarter of total global revenues - around 37,000 million - and more than half of the region. Its magnitude helps to extract data that serve to understand the direction that the industry is taking. Of the 37.9 billion dollars spent by gamers in China, 23 billion will be for mobile video games, about 14.4 billion for computer and about 600 million on console games. The market is eminently mobile and it stands out that 94% of the players who pay for video games spend money on accessories within the game itself.

This basically shows that mobile games is leading this growth, but maybe this could somehow be spilled into a console like the switch that has that mobile flexibility. 

Thank you for sharing @progstarmac

I believe that if Nintendo can get a lot of their major IPs through the regulatory process, they will accelerate there.

Niko Partners expected 8 million consoles can sell by the end of 2024, but I think the Switch has a far higher potential to carve out a niche. It will never be as big as mobile but perhaps due to the predatory practices of the majority of Mobile game makers we could end up in a situation that gives Nintendo advantages over the alternatives for Chinese Parents. The most important part is for local developers to also embrace the system and generate hits both on the home market and abroad, so it's not seen as strictly Japanese success. 

Tencent is currently working on the launch of a Pokemon game for China, currently there is only 6 Nintendo games that have actually been approved by the Chinese government thus far: Mario Kart 8 Deluxe, NSMBUD, Super Mario Odyssey, Ring Fit Adventure, Mario Tennis Aces, Yoshi's Crafted World 

Nintendo has several advantages in getting approval:

- Built in control over the amount of time minors can spend gaming

- Games don't contain additional monetization 

- Games are PG and lack violence

- 3rd Party games that align with this philosophy 

Overall, once their other big hits launch officially they have a very strong line-up of games to keep interest in the system:

- New Horizon is already a huge hit in China but you can only buy it via gray market or different region eShops

- Breath of the Wild & Age of Calamity are still not approved but China already released a massively popular game that bodes very well for when Breath of the Wild and Age of Calamity do end up releasing 

- Super Mario Party, Kirby Star Allies, and Mario Tennis Aces are currently going through the approval process

- Splatoon 2,  Smash Ultimate and Monster Hunter Rise are the big Online focused games that would really diversify the type of audience interested in the Switch

- Finally as mentioned earlier Pokemon is a huge franchise, that's yet to be popular in Japan - so it will be interesting how the mobile game does and whether we see Sword / Shield, Pokken, Pokemon Snap, Pokemon Lets Go, Mystery Dungeon etc launch in China following the mobile game. 



VideoGameAccountant said:
KLAMarine said:

Why just China? Isn't India also a big market?

Not really. If you looks at GDP per Capital, China is around 9K where India is around 2K. Both markets have a lot of people but China is far more prosperous and is on the rise. India isn't and will never be on the same level as China

I wouldn't say never, but it will certainly take a long while to get there where China is right now.