NintendObs Thinks: The console war is already over.
And Nintendo has already won.
Keep this article in the corner of your eye for the next year or two, then come back here to find out how much I was actually right. The console war is already over, and Nintendo has already won. It sure doesn’t look like it. They don’t brag about it, and the competition still does hold a firm grip over the videogame narrative, which they’ll probably keep for as long as they’ll remain. (After all, at this time, it really is the only aspect they can control.) But a clever compounding of numbers and strategies outlines a clear direction for the future of the market for videogame consoles.
Nintendo has already won because this is only the beginning. They are in effect issuing a new beginning for the Nintendo Switch business, one that is meant to last for as long as it possibly can. So while Nintendo alongside Sony and Microsoft are piloting the same program on different plans, Nintendo is at a fresh new start with nearly 90 million units sold and still counting, supported by more than 50 exclusives of their own publishing and the best ones are yet to come. (Looking at you, “Breath of the Wild 2,” Splatoon 3…) Meanwhile, the likes of PlayStation 5 just celebrated 10 million units sold globally, “the Fastest Selling Console in Sony Interactive Entertainment History” they say, while Nintendo Switch sold roughly the same amount from January 1 to June 30 — 9.17 million to be exact — not counting its best holiday season yet in its fourth year, when it outsold the PlayStation 5 (and Xbox Series X) at launch in the biggest videogame market in the world that is the United States.
The talking point distributed is that if it weren’t for the COVID-19 situation nor for the component shortages, one can only imagine how much the PlayStation 5 and maybe the Xbox Series X would have turned the Nintendo Switch business into a new Wii U, except… that is factually incorrect. Since it doesn’t account for the fact that Nintendo is also affected by the same issues:
In regard to business risk, the extended impact of both COVID-19 and the global semiconductor shortage creates a state of continued uncertainty, with the possibility of future impact on production and shipping. While these and other unforeseen risks exist, we continue to take all necessary measures in conducting business.
— Nintendo Consolidated Financial Forecast as of June 30, 2021
For Nintendo Switch, unit sales rose year-on-year despite factors such as logistics delays caused by COVID-19 and the impact of the semiconductor shortage on production, mainly because COVID-19 had a significant impact on production during the same period of last fiscal year.
— Nintendo Financial Results Explanatory Material, 1st Quarter of Fiscal Year Ending March 2022