Can Switch 2 Break A Vicious Cycle?
It seems like every time a company has a successful console, they can “never” seem to follow it up with an even more successful console. Now I put the word never in quotations because that’s technically not true. The original PlayStation sold over 100 million units and the PS2 sold roughly 160 million. But that’s quite an anomaly. After the PS2, Sony was understandably cocky and made a few PR moves that didn’t set well with gamers. The PS3 sold about 87 million units, which is still absolutely great. But that’s almost half of what the PS2 sold! Xbox 360 sold about 84 million and the Xbox One just under 60 million. And now the Xbox Series consoles are selling so poorly that Microsoft doesn’t even announce sales numbers anymore.
Since the beginning, Nintendo’s console sales have been declining with the exception of the Wii. From the NES to the SNES, to the N64, all the way to the GameCube- Nintendo console sales sharply declined. If it weren’t for their excellent software sales and handheld sales, who knows what Nintendo would look like today? The Wii was somehow able to pierce the gaming bubble, and it became the device that Grandparents would have in their home for when their grandkids came to visit. It was a household item much like landline phones still were at the time. But the Wii U sold less than 13% of what the Wii did. It was a cataclysmic failure.
Of course, we now know how the Switch has performed. As of the time of this article, the Nintendo Switch could very well surpass the PlayStation 2 as the best selling video game console of all time.
It’s kind of bizarre that these major companies get cocky so quickly. They never once think to themselves “Let’s keep doing what made us a success in the first place”. They always assume that the next best course of action is to jack up prices or make some anti-consumer decisions.
Valve is the first exception that comes to mind. While they no longer make games with the rapidity that gamers would like; Valve established themselves as the owners of the greatest storefront for video games. They really haven’t made any horrifyingly poor decisions that would lower the quality of Steam. They promote upcoming games with events like Next Fest, they have fantastic sales, and they have a gracious refund policy. Valve knows what makes them a trusted company that people enjoy giving their money to, and so far they have messed it up.
Before the Nintendo Switch 2 Direct, I made the clumsy prediction that the console would cost somewhere between $299 and $349.99. The reason I made that prediction is because the console is rumored to be as powerful as a PlayStation 4 Pro- a near 10 year old console. I also thought it would be reasonable to charge a lower price so parents would feel more willing to buy the system for their kids. And yet, Nintendo proved me wrong. Buying a Nintendo Switch 2 and a game will cost people about $550 after tax. That’s a price-point that only hardcore enthusiasts and more affluent fans will pay.
Nintendo has a history of overpricing their weak tech. The 3DS was $249.99 at launch which prevented me from buying one immediately. But six months after launching the 3DS Nintendo cut the price to $169.99!
It’s pretty clear to me that Nintendo is heading in a more corporate direction. In their long history this is the first time they’ve given a piece of hardware a simple “2” in the title. They don’t want to repeat the same naming mistake as “Wii U”.
Will this corporate direction benefit them in the end? Will Switch 2 sales be sky high on launch day? Will they have to repeat the price cutting from the 3DS? Can Switch 2 crack 100 million units sold? Can Switch 2 break the Nintendo curse of a console selling far worse than its predecessor?
Only time will tell…
