Nintendo's in a pretty good place right now. The Switch is selling well and is providing a solid platform for the company's games, and the firm has other projects – such as movies and theme parks – which are helping to broaden its stream of revenue. However, the Japanese giant is still not doing enough to leverage its enviable library of games, according to Wedbush Securities analyst Michael Pachter.
Speaking to CNBC, Pachter – who has been pretty outspoken about Nintendo in the past – says that if the Kyoto veteran adopted an Apple Arcade-style subscription service, it could rake in millions of dollars from its fans:
One thing they have that nobody else has is a gigantic library, more than a thousand handheld games, and if they were to emulate Apple Arcade and put a thousand games on it, they would have 100 million subscribers paying them $5 a month. It's not reflecting in their share price because they haven't monetized it yet, but if you're looking at Nintendo going forward, I think that's the answer.
It's not entirely clear from the interview if Pachter is talking about a smartphone service or one for the Nintendo Switch; as we know, Nintendo already offers a selection of retro games to those who sign up for its Nintendo Switch Online subscription. We assume, therefore, that Pachter is talking about the company bringing its older games to mobile phones (especially given the section of the report in which his comments appear, which is focused solely on the smartphone arena).
While Nintendo has dabbled in smartphone games with littles like Super Mario Run, Fire Emblem Heroes and Animal Crossing: Pocket Camp, but opening up its back catalogue of games on iOS and Android could open the flood gates as far as revenue is concerned; Pachter definitely has a point when he says that millions of people would sign up in a heartbeat.
But how would these classic games play on a device which lacks a physical interface? Where would it leave Nintendo Switch Online, and the retro offerings present on that service? Could such a service really coexist outside of the console market, and not impact Nintendo's core business too much?
Let us know if you think Pachter is onto something with this idea by posting a comment below.
[source youtube.com]
Comments 88
That service exists on switch, it just sucks.
Better they offer such a service for the Switch. I've played button-based games on phones before, and it's not a good experience.
Of course, it would be better still to bring back Virtual Console and just sell the games once and for all, but...everyone else is doing subscriptions these days, so I'll take what I can get.
The current selection of (S)NES titles is nice but too limited.
Analysts also said Nintendo should make games for smartphones, and look how that turned out.
EDIT: Also, I'm not sure what Apple Arcade is, but it sounds like a mobile service, hence the comparison I made. If it's more akin to something like PS Plus, where you get some free games and better discounts on downloadable titles, then they should've said PS Plus to keep some credibility and not sound like mobile "gamers."
anyone who thinks Nintendo should do a subscription service doesn’t realize how good their current pricing structure has been working for their first party titles for years now.
I disagree with Nintendo creating something like Apple Arcade because the games on there are still shovelware just with a monthly payed subscription instead of micro transactions, maybe if it was something compared to Xbox game pass then fair enough
@WesEds Apple Arcade and Xbox Game pass are basically the same idea.
@Dualmask My only experience with such a game is Sonic 2, which plays much better on a tablet than a phone; like, sure, buttons would be more ideal, but at least my thumbs were covering a lower percentage of the screen.
They did. It’s called NSO. I don’t know why people think dev work and the licensing red tape behind it is just “press enter to dump games on to Switch”. Even if it’s just first party games this isn’t a click and drag scenario. But it’s Patcher so I’m sure he was just throwing darts at his analyst dartboard for attention.
So many better ways Nintendo could monetize. Improve the subscription service on switch. Allow people to buy the retro games as well.
Mobile subscription.
More dlc for games like mario kart or mario party - how amazing would it be to have 2 new cups/boards every 6 months? People would pay for that and saves development of a whole new game!
I instead think they should work with the virtual console games they already have on Switch and just make it available on smartphones. I currently never even touch the virtual console games on Switch, but if these were made available on my smartphone, the story would change quick!
Edit: they could even capitalize on the idea by creating a Nintendo licensed Bluetooth game controller for it. (I currently use a Dualshock 4 to play games that are controller compatible on the iOS)
@KayFiOS I played several SNES and GBA games on my phone via emulator, and the biggest problem besides fingers covering relevant parts of the screen is the response time. It's not so bad for a turn based RPG, but anything action based and you're at risk of your thumb being one pixel away from hitting a button in time, missing a jump, not killing something you needed to, etc. It's just not reliable.
I was lucky enough to score an OG Switch three weeks ago. I signed up for an online account a couple of days ago. I forgot about the free NES and SNES emulators. Once I saw what they had to offer after two (?) years of online...😒 How could they drop the ball after the Virtual Console?
This won’t happen at the moment because Nintendo are pretty sceptical about allowing anything out of their own infrastructure. Where everyone is moving to their games being playable on anything, Nintendo needs it’s Switch focal point.They want you to buy the Switch because they want you to buy the new games they make and get a cut of all the 3rd party games you can play on the Switch. Not to mention to get a subscription online service to work they would probably have to partner with someone, which again is against Nintendo’s ethos. Even the Dena Mobile game partnership has been a bit frayed to say the least.
@Dualmask can concur.
I've tried the demo of mobile port Monster Hunter Stories because I completed the game on 3DS and I know mobile got updates the 3ds never got and...
... I just can't. I get wrist aches just after 10min of holding the phone that way.
And it's a jRPG. Not even an action game which would be even more demanding.
And since my primary income come from art commissions right now, I kind of need my hands if I want to make any money these days.
Why does Pachter still have a job?
Analysts.. they don't know anything about how gamers think, how games work. They only know money, and sure a subscription based service seems nice. But without the correct hardware and software, it's nothing.
@Dualmask plus for some it really isn't a comfortable way to play ergonomics wise? Even a jrpg like Monster Hunter Stories give me wrist aches after only 10-15 minutes.
I can't believe what a more action driven game would do to me on phone.
@outsider83 I miss the Virtual Console. I had like 90+ games stretched across multiple consoles. It was the closest thing to a one-stop shop for video game preservation.
These days it's all about making individual collections. It's nice that we have so many to choose from, but it still doesn't beat scrolling through the pages upon pages of game tiles like I had on the Wii Menu. For me, it was just as satisfying as having the games physically on a shelf (with no clutter).
How about improve NSO with bigger/newer games but maybe only have them in rotation for say 3months at a time? Imagine the buzz online that everyone is suddenly playing N64 mario kart because they know it'll rotate out in 3months. This could run in parallel to a virtual console service to buy your favourite games if you want.
I actually agree with this! I believe that once the Switch fizzles out and has no more games coming to it, Nintendo should release a "Premium" service for phones and/or tablets that would be a monthly subscription based plan. While I prefer physical games, I can totally see this happening in the grand scheme of things and actually think it is kinda cool. imagine, being able to play classic NES games through Wii U or Switch! And they can also start to develop for bigger games! Hell, they may even release a special controller or make Joy-Cons compatible (They are bluetooth). I think this is a great venture and huge money maker.
It's almost like Nintendo is one of those companies that doesn't value profit over everything, and tries to balance out earnings with quality.
Releasing every single product Nintendo ever made at once, Apple Arcade style would make Nintendo a lot of money today. But what about a year from now, when everybody's tired of playing Super Mario Bros for the 400 billionth time?
But "analysts" only care about what the stock price is right now. What do they care about the future?
@sanderev the thing is when analyst speaks they're not concerned about the actual industry or fans/etc.
Or even actual operating profits to a degree.
They're concerned about the stock market and whatever buzzword could have stock folks' perception of something becoming big could lead to rise in stock value even if just for a short term so they could profit from that rise.
It being founded over legit foundations is... entirely optional.
They're not looking at actual legit features for actual fans but merely buzzwords that could get stock values moving no matter how founded or even sustainable the outcomes might be.
I sent the news tip on this video yesterday.
I think the future of video games is versatility. Switch, Stadia, Gamepass and Apple Arcade are all different approaches on it. Personally, I'm a fan of Apple Arcade. Even though I've moved to Android recently, I now play on my Apple TV, but it's also something that's more suitable to the Apple userbase.
I don't think Nintendo can replicate Arcade with the same results as their consumers have different expectations. Nintendo have sort of made their bad with Switch and its continuing to be on the rise, so it's a lofty transition for a service like this.
Also, I think they're pretty content with the subscription revenue they have. NSO is pulling in people for a cheap price, but I'm sure they also have plenty mobile gamers subscribed to their mobile games' premium services.
Oh, I remember that face from the Wii U days.
They're too busy selling their games at full price. They also make 30% on game sales and other flat fees to publish. Oh and what is switch online then?
@WesEds I disagree on that. I have Apple Arcade and it’s perfect for me. Full of really charming little indies which I’d been looking at for the Switch anyways, so it’s saved me money. I haven’t run across anything on it I’d call shovelware yet, although it certainly isn’t for everyone (and that’s fine!).
@Dualmask Virtual Console game sales weren't that great during the WiiU and 3DS era.
@WesEds I disagree that Nintendo should make an Apple Arcade type service, but Apple Arcade is a great value, it's definitely not just "mobile games" in the way people think. There's a lot of games in there worth playing, both for experienced gamers as well as for kids. For example I played Sayonara Wild Hearts, Stela, Sonic Racing and Inmost, all games I would have paid for on Switch (In my Apple TV so no different than playing them on a console), but there's several other great ones that I think are currently exclusive to it like Manifold Garden and The Bradwell Conspiracy. And my kids have played many different fun puzzle games, for "free" and without any ads or the typical mobile traps.
yeah but how will they stop themselves from ballsing it up like they did with mkt
@Ludovsky yeah, my hands are pretty large, and they used to cramp even back in the day when I played Game Boy and GBA SP. Handhelds have only started feeling really comfortable for me when the PSP came out.
I can't play on a phone. The Switch is the most comfortable console I've had to date. If Nintendo comes up with a way to make use of the backlog of games (I'm sure there are licensing issues for a ton of them though), the service should stay on Switch. There are game actually made to work on touch screens, and there's a reason there exists a distinction between handhelds and phones.
I've been waiting for the next "Nintendo needs to go third party" variation for a month or so now. This has gone on since about 2001, waned for a while, then was renewed at the end of the Wii into most of Wii U's life. Good times.
Has Apple Arcade been so successful that Nintendo should copy it?
Even if it was, Nintendo has a pretty firm stance on not porting their old games to mobile as traditional button inputs often translate poorly on a touch display (maybe GB/GBA games could work on mobile, but certainly not the NDS where there is a dual screen + shoulder buttons).
Pokemon Go, Mario Run, Mario Kart Tour, Dr Mario World, FE Heroes, and Dragalia Lost exist for a reason
Oh how original... as if no one ever suggested that before. 🙄
Seriously, I don't understand why @Nintendolife keeps giving these so-called "analysts" and "experts" a platform for their nonsense.
They're not going to do it. Currently they have a half abandoned Netflix-style service. They don't have plans for a Virtual Console, but people like to demand things they're going to complain about later. C'mon, now we all want to be able to buy specific classic games, but if they released them we wouldn't want to pay the price. People isn't happy with the free classic games model included in the subscription either.
We're always going to complain about something, it's in our nature. I for one I'm OK with what they did with NES and SNES games, but don't understand why they almost abandoned it. Especially painful is the SNES games' case: it was born already abandoned!
Nintendo has something similar, it's the Nintendo Online Sub. It comes with NES and SNES games, but they're now fed sporadically and not monthly as before.
They could quite easily bulk up what there is at the minute on NSO- I kind of wondered if the rumoured Mario remakes/remasters mightn't be part of something like that. If there was a way to add subscription revenue to what they already make on hardware and software sales, it would make perfect sense.
This must be like the thousandth time that Patcher has said a variation on "console creators and developers would/will be much more successful if they moved to mobile,". And then predicts that this will be the last generation. Yada yada yada
I'm sorry, but I don't give this guy much credence. He predicted Nintendo was doomed to go the way of Sega during the Wii U era, and now the Switch enjoys massive hardware sales.
And this was also the guy who said that Netflix would go out of business while video rental store Blockbuster would continue to operate, when the opposite happened.
So I'm sorry, but Michael Pachter just needs to keep his mouth shut.
@Aurumonado I enjoy the switch online. Most the games are excellent to play over and over.
It cheapens their IP. Only way I see this working would be to partner for most content and sparingly release Nintendo titles.
Of course it's Pachter that says this.
@Aurumonado It doesn't really suck it just don't have that great of games on it.
@Smash_kirby maybe, maybe not, but the market has changed. The demand for the mini consoles proves people will buy older games if they're readily available. Games don't lose value just because they're decades old, and subscription services are all the rage. One way or another, I agree those older games (the ones not hindered by licensing issues at least) should be made available somehow.
It doesn't take an analyst to say something like this.
I've been thinking about this for months. Once Apple announced Apple Arcade, I was like "this is brilliant!", and instantly thought how Nintendo should do something like it.
They're already kinda doing it with NSO's NES/SNES libraries, but I feel like they could do so much more and better. So much potential.
But yeah, Nintendo could make a $10/month subscription to get access to all of their published games, and people will flock to it.
Maybe Apple's game library is the kick in the pants Nintendo needs. Apple's game service is essentially an argument for Virtual Console, just without the stigma of the name "virtual console".
I still have a baseless theory Nintendo is focused on new games now, but will bring about an older games focus later for a second wind to the Switch console life.
@Alexface I think buying retro games would be the big one. People are willing to buy it even though they already have it on past Nintendo consoles. Especially with how convenient the Switch is.
1) Those thousand games don't just port over to smartphones at the click of a button. Every single one would need development work and ongoing support for iOS and Android. It would be a huge undertaking and take years to get off the ground.
2) On what planet are ONE HUNDRED MILLION people going to sign up?! To my knowledge there are only two subscription services on the planet with over 100m subscribers (Netflix and Amazon Prime).
Wall Street analysts are quick to jump on the "hot" business models of today, the subscription model being the latest such trend. It's a folly in my opinion, a surefire way to cheapen your brand and IP while destroying the margins of developers.
Nintendo Arcade would be amazing.
@Ryu_Niiyama “But it’s Patcher so I’m sure he was just throwing darts at his analyst dartboard for attention.”
Yep and he’s absolutely crap at darts as well.
@KayFiOS well despite Nintendo's quality being just ok on mobile, it has provided an additional revenue stream. They only put out a few games a year. Mario run was underwhelming but Fire Emblem, Animal Crossing have done well.
nintendo could use a game pass of sorts of its own akin to xbox game pass/ ps now. but for its own games, or even a random 100 or so eshop games every month as the selection. literally anything would be great.
NO SUBSCRIPTION SERVICES. If I don't own the product I legally purchase and have no say in when I lose access to it, I have absolutely ZERO interest in it. I have never signed up for PlayStation Now or Xbox GamePass and never will (despite the fact it's clear both companies are steadily pushing away from PS Plus/LIVE toward those services). I will leave the hobby I've enjoyed since the Atari 2600 and never look back if subscriptions become the only means of accessing games.
And yes, as previous comments have already stated, Nintendo's track record with their own online services speak for themselves. It would be a horribly underserved, half-hearted disaster and complete waste of time and money for users. Switch Online is a bad joke for the price and features, and at $19.99 per year that's saying something. It's like pulling teeth to even get them to support cloud saves for first-party titles like Animal Crossing.
How many successful entertainment companies worth more than $1 billion has this guy run?
Proof that analysts have absolutely no clue what gamers actually want. Therein lies a big part of the disconnect between the corporate and hobbyist aspects of the industry. They ask the question "How do we get them to spend more money" with every conceivable suggestion other than "In a way that offers value to the consumer". And that's been a serious problem for the gaming industry as a whole for awhile now.
I can see apple absorbing nintendo. Hardware would at least be nice. Apple and Nintendo fans are also similar.
This is like asking Netflix to bring their originals over to Amazon.
IT DOES NOT MAKE SENSE!
No, But what they should do, Pachtervis create a Virtual Console in conjunction with a service like XB Game Pass. That way those who want to rent Nintendo games, digitally, can do that, and those of us who want to own their games digitally can also do that. OPTIONS.
@Dualmask I do think Nintendo should add more games to the SNES Online and NES online services. I am holding off playing Mother as I want to play it on my Switch instead of my WiiU.
@Kriandis You do know companies are doing this. They let you watch one season for free on a rivals platform.
Or you know some sort of online catalogue where you can buy games. They could call it something like a virtual console...
They already have this on a tablet like device.
Secondly a quick cash grab of “slapping a rom on a phone” went out of date about 6 years ago.
@Wargoose No good money in that. Nintendo can remake one Zelda game and make more than all combined sales of the old Zelda games.
People would go for it, being able to play NES, GB, SNES, N64, GBA and GCN games would be game changer. Have Bluetooth controllers and someone will 5$ a month.
Is Apple Arcade a good service though?
Nah, I had it for a month, played the two or three half decent games and waited for playable games for the rest of the time, but since it became clear, that new games trickle in so slow and with poor quality as well, I stopped subscription.
I don’t want my Nintendo like that. Apple doesn’t seem to be able to afford very good games with that business model, why should Nintendo undervalue its property? Does this guy want Nintendo to lower its quality, or even go out of business?
Pachter is a pile of #$%@!
They already do this for past games, it is called Nintendo switch online service (NSO). He wants them to monetize new indie games I guess, but I don’t think he is speaking to the right audience for that (retro gamers are the primary audience of the big N).
I can see the logic but it's flawed.
Apple Arcade is great - but it's addressing a problem that the mobile market has (a race to the bottom in price - freemium & pay-to-win - impacting on consumer trust in games on mobile platforms). Apple could (and should) have headed that problem off a decade ago but they didn't. Arcade is a belated attempt to set things right.
Nintendo doesn't have the same problem. They've consistently maintained high prices for first party games (and to a lesser extent third party games on their platforms) and been successful in doing so. Whilst consumers see that the box on the shelf is a legitimate price (and means you get the full game without locking most of the game behind additional transactions) Nintendo doesn't need to come up with a model to mitigate trust.
A subscription model could one day be the way forwards if their existing model starts to fray but we're a long way off that.
I really do think a Game Pass-like subscription for the switch would bring in holla dollar for Nintendo, I would happily pay £10-15 a month or so to play a library of Switch games! Nintendo also has a huge indie selection of games that really would benefit from an audience who can pick and choose what to play whenever!
Pachter?! seriously?! that moron is still around and is as useless and clueless as always?!
Hhahahahahahaha!
Wow just wow....
Good to know some things never change as dumb as they are
After the already questionable launch of the Arcade, Apple has released 2 new very small games per month.
So no.
@WesEds I’m not a big mobile gamer but have you tried Apple Arcade out of curiosity? The games are actually mostly really good and have controller support. Lots of the good games on Apple Arcade are also coming to switch.
Always do the opposite of what Pachter says and you will be fine. What a hack!
@iNintendo Agreed, I love Apple Arcade. Bunch of fun games.
Lmao! Michael Pachter? People are STILL giving him money? He has never been right about anything!
Do a google and see what I mean
When you start listening to that kinda of analysts I got a wide acreage in Siberia that is in the right price for you. Anyone like one dimissing the Switch and making baseless comments like this:
I believe that once the Switch fizzles out and has no more games coming to it.
Is a person whom clearly is NintenDoomed Fandom faking as a Nintendo fan. Has been living in their parents basement far too long.
Why do these so-called analysts never have any relevant experience?
Like, stick to what you know dude.
@Heavyarms55 because they a financial stake against Nintendo that is why....why else would dumb listen to the dumb....
Yes, they should do that. But exclusively on Switch. Dump the half-assed afterthought that is NSO and implement a full fledged retro subscription service on Switch.
Nintendo is sitting on a gold mine and refuses to do anything substantial with it.
@iNintendo yeah I have tried it but there’s only a handful of games I was interested in and even then it didn’t hold my attention long enough.
I understand some people enjoy it and would like the idea implemented on the switch but personally I don’t like the idea.
Doing something like Xbox Game Pass is something Nintendo already knows it doesn’t need to do.
I actually agree. I think Nintendo should revive the Virtual Console branding as service where you can not only buy classic games, but access a much larger selection across many platforms.
NES and SNES games get played on Android devices all the time. Nintendo might as well get some money out of having a way to do it legally. I should probably out my money where my mouth is and purchase one of Sega's Android games.
@Strictlystyles Yeah, with smaller discounts in their first party games and now they're selling ports for $60. They sure make a lot of money
Funny that these analysis don't know about the snes/nes collections that Nintendo offers currently. Sounds like they need to go back to apple, or find a new job.
Boo!!! I don't want to see a Nintendo subscription service, it devalues the games. Like on PSNOW, there's a ton of great games for a good price and it makes it feel like I shouldn't buy any games because they'll probably show up in the PSNow library after I buy them. I'd prefer to see amazing sales, and there's always lots of those.
Are we pretending Nintendo hasn't already created such a service?
Nintendo Online (which is a ridiculous name, as noone under 20 has ever used the word 'online' by choice even once) is what you need to pay for to access their NES/SNES libraries currently. And once you stop subscribing, you can't access them anymore.
Say what you will about the quality of Nintendo Online compared to Apple Arcade, which I admittedly know nothing about at all, but it's less than $2 a month, and also comes with Tetris 99.
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