Nintendo on creating a sixth year of growth for Switch, OLED doing well, all-time high for third-party games
During a financial results briefing, Nintendo president Shuntaro Furukawa discussed plans to continue growing Switch as the console heads into its sixth year.
Furukawa stated out by highlighting the different ways that the system can be played before talking about the OLED model, which is doing well so far. Some are replacing their older devices while others are jumping in for the first time. Finally, Nintendo will be releasing big games in 2022 such as Zelda: Breath of the Wild 2. Switch has also seen an all-time high for third-party games on a Nintendo platform as there are over 6,700 games from these publishers through September 2021.
Furukawa’s full comments:
While paying attention to these kinds of sales and gameplay indicators, we are striving to maintain and increase engagement with Nintendo Switch. With the Nintendo Switch lineup and its new addition, Nintendo Switch – OLED Model, we will aim for a sixth year of growth, something never before experienced with our dedicated video game platform business.
Our aim of a sixth year of growth is underpinned by three factors.
The first is that Nintendo Switch offers three play modes, meaning the system can be played in a variety of scenarios, which creates broader opportunities to enjoy games.
The second is that the motivations behind those purchases have diversified. And the third factor is our robust lineup of evergreen titles coupled with the continuous release of new titles.
First of all, I would like to talk about three play modes that create a diversity of gameplay scenarios.
Nintendo Switch is a game system designed to fit your lifestyle. It can be taken on the go wherever you like, not just used in front of the TV at home. By sharing the Joy-Con controllers, you can start a game anytime, with anyone, anywhere. When people bring their Nintendo Switch with them, they can start local cooperative or competitive play anywhere they go.
Consumers who purchase Nintendo Switch are ta king advantage of the system’s unique features to play in a variety of scenarios and ways that were previously unachievable on a single game system.
This unique value of Nintendo Switch has been embraced by consumers over time since launch. As this unique feeling of excitement for Nintendo Switch spreads, a new value of entertainment emerges.
Second, I would like to explain how motivations for purchase have diversified.
Nintendo Switch – OLED Model, with its large, vibrant screen is off to a good start since its launch on Oct. 8.
Its sales trends show that many consumers who purchased a system at launch around five years ago are now interested in replacing it with a new Nintendo Switch.
As seen in the purchasing trends for Nintendo Switch – OLED Model, motivations behind system purchases have diversified. Some are buying a Nintendo Switch system for the first time, while others are buying a second one, and still others are replacing their existing system with Nintendo Switch – OLED Model.
When Nintendo Switch first launched, it was common for households to purchase a single system. But more and more families now own multiple systems.
With the increase in titles that can be enjoyed individually, and the growing trend of playing Nintendo Switch in handheld mode, we continue to strive to expand our install base to one Nintendo Switch per person. We believe there is even further room for the Nintendo Switch install base to grow.
Third, I would like to talk about the robust lineup of evergreen titles and continuous release of new titles.
The key to maximizing the potential of Nintendo Switch is to develop and offer irresistible fun through the integrated software-hardware entertainment that is Nintendo’s strength.
The Nintendo Switch generation integrates the previously separate environments and frameworks of software development for home consoles and handheld systems, and has enabled us to release characteristically Nintendo software over an extended period of time.
Another major difference is that the Nintendo Switch platform brings together under one roof the franchises that supported our past home consoles and handheld systems.
As a result, we have continuously released new Nintendo titles for Nintendo Switch since the launch of the platform, resulting in a software lineup that is unprecedented in both quantity and quality.
And as you can see with the continued growth in sell-through of evergreen titles into this fiscal year, people who are purchasing Nintendo Switch for the first time are buying not only new titles, but also previously released titles.
As Nintendo Switch heads into its sixth year, we will continue to release new titles on an ongoing basis.
A string of titles is set for release. Pokémon Brilliant Diamond and Pokémon Shining Pearl will be released later this month, with Big Brain Academy: Brain vs. Brain arriving next month. Early next year, Pokémon Legends: Arceus and Kirby and the Forgotten Land will be released, with Splatoon 3, Bayonetta 3 and the sequel to The Legend of Zelda: Breath of the Wild also set for release during 2022.
In addition, we are providing consumers with add-on content for our Nintendo titles, so they can continue to play them long after purchase.
For Animal Crossing: New Horizons, we released a major free update yesterday (Nov. 4), and the first-ever paid add-on content for the series today (Nov. 5). We want to renew the interest of those who have stopped playing Animal Crossing: New Horizons and encourage those who have played since its release to continue to enjoy the game.
We believe that continued play of this title, which has sold over 30 million units already, will further extend the potential of the entire Nintendo Switch platform.
Titles from software publishers are also generating a lot of enthusiasm for Nintendo Switch.
The lineup of titles from these publishers is expansive, including titles for game fans, titles that appeal to anyone regardless of age or gender, unique titles from indie developers, and titles in specific genres with their own unique fan bases.
There have been multiple hit titles in each genre. For example, in this past year, Capcom’s MONSTER HUNTER RISE has enjoyed widespread support from enthusiastic game fans. Released in March, global sales have now reached 7.5 million units and continue to increase. Konami’s Momotaro Dentetsu: Showa, Heisei, Reiwa mo Teiban!, which can be enjoyed by anyone from children to seniors, achieved sales of 3 million units in Japan alone since its release last November.
And in addition to those, several other major titles are set for release, including ATLUS’ Shin Megami Tensei V, which is due out in November.
Sales for titles from software publishers on Nintendo Switch have expanded over the years, in tandem with their increased presence. Last fiscal year, titles by other software publishers accounted for more than half of the total unit sales for packaged software and its downloadable versions on Nintendo Switch, surpassing unit sales of Nintendo titles.
In the 38 years that we have been in the home console business, the number of titles from these companies is at an all-time high. As of the end of Sept. 2021, there were over 6,700 titles from these publishers available worldwide for purchase in Nintendo eShop on Nintendo Switch.
We would like to take this opportunity to say a huge thank you to these participating publishers.
So far, we have talked about the Nintendo Switch business. Heading into our sixth year since launch, we are prepared to continue bringing new and surprising experiences to consumers, and our goal is to continue to increase the unique value Nintendo Switch offers.
