Switch has changed Nintendo's Long-standing Business Strategy
The Nintendo Switch hybrid console symbolizes Nintendo’s departure from the two-device business model that the company has adhered to for almost 30 years.
This is reported by Bloomberg.
Since the release of the first Gameboy in 1989, Nintendo has successfully promoted two product lines — portable and home consoles, as well as games for them.
This allowed the Japanese company to present home consoles as higher-end devices with more expensive titles.
After the peak financial performance of 2008-2010, revenue began to fall, and the firm began working on a change of course.
Although Nintendo has not officially announced the development of a new paradigm, back in 2013 the company united teams of game developers for home and portable consoles, and since the last quarter it has stopped dividing revenue from the two hardware platforms in financial reports.
Released in March of this year, the Nintendo Switch hybrid console has become a major Nintendo product. The launch of the new console set several historical records and influenced the international video game market.
According to analysts, Nintendo may sell up to 13 million Nintendo Switch by the end of this year.
“We understand that Nintendo Switch has diversified people’s gaming experience. We want to give them as many opportunities as possible to play — both in the format of a home and portable system,” said Tatsumi Kimishima, president of Nintendo.
Despite the flagship position of Nintendo Switch, the company has another area of work — mobile games.
According to Macquarie business analyst David Gibson, Nintendo has become more sensitive to the desires of players, which, in turn, stimulated sales and made its business more profitable.
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