"The Switch is not competing in a vacuum"
In recent years, the prevalent mantra surrounding Nintendo Consoles is that they don't want to compete with Sony or Microsoft. Don't they? They don't want money?
They cared for competing in the NES and SNES eras.
And then people give the example of the Wii and the "blue ocean" marketing strategy. Well, I think the Wii is a successful exception on how to build a culture and business model of a console, and exceptions are exceptions for a reason. The low attach rate shows to me that people consumed the machine like one of those musical summer hits that breaks records. And the WiiU sales support that, just by comparing it to the poorly managed launch of the Xbox One. The lasting feel for the 360 helped mitigate that disaster a lot better than the lasting feel of the Wii helped the WiiU.
All in all, I don't buy that logic that Nintendo does not want to compete. They would love to have the numbers and the mind-share that Sony has now.
It's ok, for people that are dedicated gamers and play in more than one machine. But you should not build your culture and business model to target that "secondary" spot.
A lot of people don't either have the money or the time to play videogames in several machines.
I don't believe that Nintendo wants to be niche. They simply aren't doing a good job in convincing a lot of people that Nintendo products should be their primary source of entertainment. You should always aim for that. And they, still, have the brand to aim for that.
The Switch is an interesting concept. And, as I said before in this forum, I think this product is so different and compelling that word of mouth, social interaction, and youth zeitgeist can be more important predictors of its success than the typical cornerstones of this business: price, power and 3rd party support.
Yet, it wouldn't hurt for them to try a "Playstation 2" instead of a "Wii", once in a while: a strong price/performance ratio, the minimum non-gaming functionality, 3rd party support of the best selling AAA franchises and a 1st party catalogue that has aesthetic variety.
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