Nintendo Could See Profits As High As The Wii Era Thanks To Global Lockdown, Analysts Say

Even if the hardware is in limited supply, I do suppose the profit on software is much much higher anyway, so there's a short term benefit to the limited expansion of the user base. ^^

animal crossing went absolutely world viral, must be a part of this!

From the point of view of installed user bases this means great things in terms of continued support and first-party software. The Switch is clearly going to be around for a long time.

And because of that long life we will likely see a lot of amazing stuff, such as many extra past consoles added to NSO, Mario Remasters, Odyssey 2, some more love for IPs like Metroid, Pikmin ext...

Maybe even the Switch 'pro' or whatever it would be called will become a thing in time now - something I've been mostly highly sceptical of before.

Shame it took a situation like this for it to happen though.

There will be two negatives though next year when PS5 and XBOX4 will launch (or this year on Christmas). A lot of people will see Switch in terms of graphics too old for their likes. So, it may lose ground - sales - interest eventually. I hope Nintendo will release a Switch2 which will be like with way better specs than the original but I fear the battery consumption..

No doubt alot of this is down to Animal Crossing, and of course lockdown....
Nothing like having a bored captive audience looking for entertainment to help with profits.....

@nkarafo
Switch graphics are already dated in comparison to the current competition, but that hasnt hurt it's momentum one bit.

People didn't rush out to buy Animal Crosing in droves because it looked comparable to Final Fantasy VII Remake.

Title seems distastefully boastful.

Increases in profits IS good for business, but I’d imagine Nintendo would want to distance themselves from linking any kind of success to the current situation.

Well I’ve bought donkey konga 1,2& bongos

@westman98 Yeah, I agree. I see the point that @nkarafo is trying to make (I think), that Nintendo will at least need to remain relevant in the conversation somehow and I think that this may mean a hardware revision rather than a traditional successor.

But I don’t think any interest is linked to graphics or capability. The Switch is it’s own beast. I own all the gaming platforms and I play on Switch for a certain kind of experience... or sometimes it’s just immediacy and accessibility of the platform (playing in bed or on break at work).

Much need profits to strengthen 1st party developments, improve online capabilities and invest in the Company future!

@Ajent Yes, this is exactly what I am saying. I own PS4 also and I play Switch more BUT there are people that they don't want to throw money to two consoles and have only PS4. I am referring to those that they play Call of Duty, Resident Evil new titles, FPS, online games, etc. Look for example Capcom that they don't really support Nintendo. They are supporting Microsoft and Sony. If the next consoles will be out, RE8, SF6 and new Monster Hunter will be of course in PS,XBX. So, software and hardware sales will be lost again for Nintendo.
True that Animal Crossing and FF7 remake sold extremely well and Switch plays in its category as hybrid alone but I think that there is indeed an interest in graphics. It's the same as the PC users that nowadays don't want to play a game at 30 fps. They prefer 60 minimum or above if they have a better monitor. So, if for example Sony delivers a much better VR experience out of the box (if), then it will be an advantage to Switch.

I quite like lockdown, but I also hate it, because I'm sure it's causing a surge in digital purchases, which will only accelerate the move away from physical releases.

@westman98 obviously the specs are outdated in comparison to home consoles but I haven’t seen anything look or feel as good as Luigi’s Mansion 3, Zelda LA, Animal Crossing and Mario Odyssey on another handheld device. Plus I would say the graphics are good enough that they’ll never really look outdated in handheld.

@nkarafo you are 100% correct, anyone who imagines the PS5 and Xbox Scarlet will not effect Nintendo's sales is just wishful thinking.

The problem is that, I don't think we're going to see a PS5 or Scarlet until next year.

Because if they launch this year, it'll be fool hardy, they wouldn't be able to maintain the sales numbers they would need as production lines would be messed up.

Not unless Sony went ahead and started making consoles now, which I doubt because the hardware isn't ready.

This is not to mention the delay on almost every single game.

It's silly to try and think they won't have an effect on the Switch, but by the time they do, it'll already be over. Nintendo will have gotten what it wanted.

Also if Nintendo drops a pro on us, you know at least 30% of the current install base would upgrade. With or without a PS5 and Scarlet on the market.

@beazlen1
Also, more importantly, all of those games you just listed are exclusives, which aren't going to be impacted by the launch of PS5/XBSX at all.

As long as Nintendo doesn't stop making exclusive content for Switch and it is priced well below that of the new consoles (which it well be as both new consoles will be $/€500), they will be fine.

Imagine how much they’d be selling if stock was in plentiful supply...

@sandman89 in that case you also need DK Jungle Beat! Superb bongo platformer!

@datamonkey 😆 yeah I’ve actually got it for the wii but now I’ve got the bongos I want to try the original. 👍 fantastic games. Underrated I think

The mad thing is, as has been seem time and time again, Nintendo can post great profits and show great signs of success, but the stock always seems to drop after their annual report. Strange I know...

Maybe they will use some of this Pandemic Profit to redesign then Joycon. Wouldn't that be nice.

@Razer I think the major repercussion from PS5 / Series X will be fewer "major" third party games coming to the Switch. The Switch is obviously missing out on a bunch now, but once the 3rd parties start targeting the PS5 / Series X as the baseline, expect those titles to be even more scarce on the Switch. That said, the Switch's larger install base will ensure that there are plenty of lower budget third party games being developed for the Switch first, and later ported to the other consoles. And quite frankly, I've been far more interested in the lower budget titles than the big budget titles. So even after I purchase a next gen console, I'll still be doing most of my gaming on the Switch.

@nkarafo,

You just do not see it do you, the masses care very little for graphics and frame rates, the Switch will be fine, the core minorities care about hardware power, but as I said they are in the minority, just because we care about something does not mean anybody else does,.

@NotoriousWhiz,

Yes so the games that sell naff all on the system won't be coming, no loss there then.

No doubt they will be increased, people are still looking for them in certain areas due to run on the shelves and AC has been a Gravy Train. Based on history I could see Nintendo's next gen Switch being 1080p since nearly every house owns a TV with at least 1080p...and cable companies that have 98% of their channel line-up pushing 1080p/i at best unlike streaming services that offer 4k when available.

@nkarafo I was going to say it, but @Razer beat me to it. Sony and MS are insane if they still honestly believe they're launching consoles in 2020. I doubt they do believe that, I assume they're going along with they hype because they have little else they can do, Sony in particular abandoned PS4 a year and a half ago to move onto a new product that isn't going to exist for a while. MS is keeping the X1 relevant better than Sony from a marketing perspective, but both of them really jumped all in on the new console, hurting their current sales, only for this to happen to them. I'd guess by fall we'll get a "due to current circumstances, we regret...." notice on both PS5 and XSEX.

If they actually do try to go for a launch, it'll backfire and hurt the whole generation, leaving them scrambling to reinvent a new one sooner rather than later with a "well, we lost a year due to lockdowns" disclaimer. The launch will be dismal with a bankrupt public not too interested in expensive top of the line gadgets with expensive accessories and new, probably more expensive games, and, arguably worse, heavily constrained manufacturing and supply chains wholly unable to keep up with a launch demand, so that even if it launches and people miraculously find enough money under the couch cushions to buy one, there won't be nearly enough of them to sell and they'll remain unicorns that aren't where much gaming is happening for quite a while.

I think this whole thing bought Switch another 6 months to a year, at least, of no competition.

@NEStalgia exactly.

Even if you consider a best case scenario for them in that they manage to release this year with a solid line up of games and both companies can maintain production lines.

Who will buy the systems? It's all well and fine saying "I will buy this when it's released" but we just don't know what our financial situations after this all ends will be.

Which companies will survive? which won't? how the impact of the economy will be? All of this will have a knock on effect.

Even to the Switch which is already on the market, let alone two brand new consoles that have yet to be released.

The smart money will be on them to delay it until mid 2021.

@nkarafo I have a $5,000 PC setup and still spend hours a week on my Switch. I also have a PS4 Pro and Xbox One X. Proof it appeals to anyone.

@NEStalgia When did Sony abandon the PS4? There's been steady exclusives since launch. The Last of Us II is out this summer. We just got Death Stranding.

@NotoriousWhiz yeah the lineup will always be effected unfortunately. It seems Nintendo made that bed to lie in back in the Wii days.

To be honest I just want a decent big budget sports game to play, ideally a UFC game but I'd take a good wrestling game if one exists. That's really the only thing missing in the types of games we get.

Outside of that though, I totally agree with the lower end games actually being better, I cannot wait for Hollow Knight: Silk Song.

@ivory_soul I also don't think that Sony has totally abandoned the PS4, but it has scaled back marketing in a big way..

But I would never use Death Stranding as an example of a good game. Never 😂.

@ivory_soul "Abandoned" may be an exaggeration. Vita was abandoned, PS4 is just severely neglected and depressed.

They're filling out the queue of things they already promised years ago, but they haven't been announcing any new content, generating any marketing hype toward the platform, or it's future. They're doing bare minimum to keep the dedicated engaged, but they haven't had much of a public facing show beyond "wait for the things we already told you about to arrive and look forward to PS5" for almost 2 years now. GameStop had also noted the drop in sales due to both MS and Sony pretty much ending the generation over a year ago. Switch is the only platform with momentum going right now for retail. PS may still pull in more money due to the huge install base, but it's a downward momentum now.

Sony went all in with PS5, MS followed but with a tamer "both platforms will be current" approach. But if they can't get their consoles out the door they remain in their own limbo indefinitely. And I don't see any plausible case for them to launch consoles at all this year.

Sony turned inward, abandoned most of their public-facing marketing

Even on twitter I’ve seen a lot of people saying that they really want a Switch right now; especially for people with families where the tv is occupied already.

It’s too bad that production was impacted (but understandable), but for the base that’s already there, yeah, I’m sure business is booming. I bought two games myself to play during the lockdown.

I can't stand these kind of analysts. Rarely if ever do they really know anything about the products they are talking about beyond the most general ideas. They have no shame suggesting people profit off of crises like this either. There's tons of people playing the stock market right now and trying to make bank on all the chaos. These people make me sick.

@NEStalgia I think it's more about method, E3 2018 was kind of the end of PS4 in a way as Sony was rather quiet after that meanwhile Nintendo did Directs even if there was very little to announce (vast majority of E3 2019 and September 2019 Directs were promotion of already announced content).

All of this even greater success is getting me pumped for the E3 replacement direct presuming we get one. Roll on June!

@Grumblevolcano Not really, the big difference is PS4 was clearly "done" - they mostly stopped promoting it and started promoting the undefined new platform. E3 2018 was the end...let's be honest, E3 2017 & PEX was the end. Even E3 2018 they didn't really bring a lot to show and had clearly, internally, wound down for PS5 very early. They pretty much stopped announcing new first party content and continued just plugging the ones they already announced as they worked through the pipeline (and let it drag out.)

Nintendo is famously quiet and doesn't always announce much but they've relatively steadily had new first party content and signaled promotion of Switch, a future for Switch, and future incoming content announcements.

Of course Switch is a much newer "current" platform, while PS4 was supposed to be phasing out now, so they should be at different parts of their life cycle. But announcing your console replacement and winding down visibly 2 years before it's ready is a terrible strategy. Getting hit with a plague and the second great depression just rubs salt in their folly.

Love how the xbox/psx fandoms tries to raindown the Switch success as though it will die off when their 2021 consoles release. Got Big News for ya. Keep drinking your Koolaid that isn't going to change. Your only thinking of GPU and nothing more that is why those consoles are so limited in their own offerings. You can't make a ps2, ps3, ps4 game better because you upgraded the GPU the software isn't going to change. And if they rewrote the software they would no longer be same price as before so again whom going to toss away all their old games to buy the same game that cost more when they can buy the same game for less used or old unsold games. Whether NIN does any E3 annoucement or not is besides the point already. As for the cost of those xbox/psx console they won't be costing 299.99 that is a Fact so unless you have a unlimited pocket buying that doesn't make you the new kid on the block but a Poor kid on the block. That fact they aren't willing to give a price listing tells you they can't make it for less they people are talking about. PSx was last I seen in a article was metioned at a 499.99 and that to me is a deal breaker cause after that how much do you have to buy the PS5 games to go along with that if those coast $60 or more cause they aren't going to come cheap.

And to those so called Analyst I believe them as much as (&(& hits the fans. They couldn't' predict the Pandemic or current events.

@nkarafo Since when has specs and graphics had any bearing on Nintendo’s success? Good games are what is important, not frame rate and Call of Duty!

I surely agree with others here that the title seems distastefully boastful.

Wintendo. I believe we're living in Nintendo's greatest console generation ever. Wii sold masses of consoles off the back of a novelty but people largely forgot their consoles after a while. Switch demand is based on a great library of exclusives and flexibility to play them wherever you want. Appreciate this period, because the Wii U showed us that the next console may not do so well.

@Razer It's not a bad game, just an acquired taste. It's well made, just very strange and not very appealing to the average gamer.

And yet ive been waiting for an important update patch to release here (Nin of America side) for a brand new, 2020 released, "NEW" 3ds game "Silver Falls: 3 down stars" without any way to find out why update 1.3 is out in Europe week(s) ago but not here. NoA won't respond to social media inquiries and even the games developer doesn't know why it's not released everywhere by now. Use some that profit to give your smallest partners some love.

@ivory_soul I dunno I think the best thing about that game is Dunkey's YouTube video on it.

"The first ever strand type game"... Killed me 😂.

@westman98 it’s already very dated on graphics, tech, and the future. Just wait until the 10+ Teraflop consoles arrive and the switch gets no 3rd party games anymore. Honestly, the only thing keeping switch getting ports at the moment is the Xbox one original still gets games with its 1.2 TF of power and it’s easier to downgrade that a bit to work on the switch 1TF console. But that will change when the original Xbox one and PS4 get phased out soon enough. Not to mention many people won’t bother with switch offering the worst versions of every game multiplat.

@HardcoreDaBoss
It's not like the Switch gets a ton of 3rd party games right now. It sells off of its 1st-party exclusive games (look at Animal Crossing's insane success), so unless Nintendo stops supporting the Switch with content, it will be fine.

The price difference between the Switch and the presumably expensive PS5/XBSX will also help too as much of the world continues to endure an economic crisis.

Considering that there has been no new software news for the ps5/seriesx and E3 is cancelled this year meaning the time that gaming companies build momentum is now a bunch of scattered messages I don’t think sony or ms are going to make a huge impact even if they release this year. So far there is nothing on the table that showcases how these games will be better. Hardware specs are nice but in terms of software ultimately meaningless. Games are going to look like props4 and xbonex for at least a year if not longer given how the pandemic has shifted dev schedules. And that doesn’t even include consumer income impact. Even if people kept their jobs I suspect for a little while at least that consumer spending will be... hesitant for luxuries.

When are there repair facilities opening back up...

@Chris55

Early Nintendo relied on superior graphics, up until the GameCube. The N64 was a powerhouse at the time, even if it didn't sell that well.

For all the NintenDoomed failed utterly why the Switch is a success is like talking to passing gas. It farts and then is gone like the breeze.

Lockdown plus no new PlayStation or Xbox can only work in Nintendo’s favour.

Put on your tinfoil hats and cue ‘Nintendo made coronavirus’ conspiracy theories when the profits roll in.