The Nintendo Switch marks a new era for Nintendo, as the hybrid console may signal the end of the company's two-gadget strategy.
Nintendo of America COO Reggie Fils-Aimé said in January that the Nintendo Switch will live side-by-side with the Nintendo 3DS, but with the massive success of the hybrid console, the company might have to take another look at that approach.
Nintendo Might Drop Famed Two-Gadget Strategy
Nintendo has used its famed two-gadget strategy for more than two decades, with the company having one home console and one handheld gaming device in the market at all times. This approach has allowed Nintendo to double its market, as gamers purchase one console to play in their living rooms and another device to play while on the go.
However, after so many years with the strategy, Nintendo might already be planning to give it up. In 2013, the company merged its home and handheld development teams before starting work on the Nintendo Switch. Last quarter, the company also stopped reporting revenue for handheld and home systems separately. Last month, a new Pokémon title was revealed to be coming to the Nintendo Switch, which is the first time that a main game in the franchise will launch outside of the company's handheld device. Last week, Nintendo ended production of the New Nintendo 3DS in Japan.
Contradicting the claims that Fils-Aimé said earlier in the year, Macquarie analyst David Gibson said that Nintendo will likely only keep the Nintendo 3DS around for a few more years, owing to the massive number of gamers who own the device. However, the long-term goal of Nintendo would be to transition into a one-gadget strategy, helmed by the Nintendo Switch.
Will Nintendo Reach New Heights With The Nintendo Switch?
The biggest concern with the dissolution of the two-gadget strategy is whether Nintendo will be able to reach the same level of revenue with only one console. The Nintendo 3DS line of handheld gaming devices have proven to be very popular, and it is unclear if dropping these devices to shift the focus entirely on the Nintendo Switch will not result in lost earnings.
Nintendo will hope to make up for any lost sales from the new strategy through mobile games, an industry that the company was late getting into. There are surely some households that purchased both devices in Nintendo's two-gadget strategy, but perhaps the loss of the second device will be offset by the fact that the Nintendo Switch will reach even more gamers and their families.
