How Nintendo Switch 2 Can Outdo Its Predecessor

We were all convinced that the Nintendo Switch would be a commercial failure. I've shared this story before, but it bears repeating. When Nintendo unveiled the console almost seven years ago, a group of us gathered at a pub in London and unanimously agreed that this could be Nintendo's final console. Our reasoning was based on the poor performance of the Wii U, the Switch's lack of distinct features compared to the PS4 and Xbox One, and the decline of handheld gaming. The launch lineup was also underwhelming, with the exception of The Legend of Zelda: Breath of the Wild. However, we were mistaken. The Switch went on to achieve immense success, surpassing 130 million units sold. The console's versatility, which allowed it to be used both at home and on the go, appealed to a broad audience. It also successfully catered to both hardcore gamers and families, offering a range of games that could be played in various settings. The Switch's success can be attributed to Nintendo's effective software strategy, which included launching with a strong game like The Legend of Zelda: Breath of the Wild and maintaining a steady release of new games throughout the console's lifecycle. This generation has been a highlight for Nintendo, with top-rated sequels for franchises like Zelda, Mario, and Pokémon. Although the company faced some setbacks, such as the failure of the Nintendo Labo series and issues with the Joy-Con controllers, it is now in a strong position as it approaches the launch of its next console. The question remains: how can Nintendo ensure that the Switch 2 matches or surpasses the success of its predecessor? Historically, Nintendo has struggled with transitioning between hardware generations, often experiencing diminishing returns. However, the Switch's continued strong sales and record-breaking game performances provide a positive foundation for the next generation. The COVID-19 pandemic and the poor performance of the Wii U, which allowed Nintendo to release updated versions of previously developed games, were advantages that the Switch had. These factors will not be present for the Switch 2. The company will need to rely on its internal development capacity, which it is expanding with a new development center and increased recruitment. Nintendo is also meeting with independent developers to find new partners and potentially work on games based on its IP. The biggest opportunity for Nintendo lies in the digital space, where its business has grown significantly over the Switch generation. The company can improve its Switch Online service and eShop store, and potentially introduce new digital services to innovate without drastically changing the hardware. Ultimately, Nintendo's success will depend on the strength of its IP, the number of people engaging with its games and brands, and its ability to build on the legacy of the Switch.