Is Nintendo Ready to Step Up Its Game in the Face of Growing Xbox and PlayStation Dominance?

The year 2023 is turning out to be an eventful one for the gaming industry. Gamers have seen some stellar releases from Xbox, Nintendo, and PlayStation that have increased the competition in the Game of the Year 2023 race. Amidst all this, netizens saw Microsoft fight both the FTC and CMA to complete their $68.9 billion Activision deal.

Furthermore, netizens also saw the departure of PlayStation boss Jim Ryan, who reshaped the brand to service games provider. But constantly missing from the spotlight was the Japanese gaming giant Nintendo. And if the future market trends are true, they would have to take some drastic measures if they want to retain their spot in the Big 3.

Xbox and PlayStation moving ahead while Nintendo is slowing down

In a tweet from industry insider Derek Strickland, he compared the revenues of the Big 3 in the gaming world. He took the data from 2022 for PlayStation, Xbox, Activision Blizzard, and Nintendo. Combining the revenue for Xbox and Activision Blizzard puts Nintendo in a very weak spot. Before the acquisition, Xbox revenue was present at $15,563 million. Which is comparable to Nintendo’s $12,623 million in 2022.

However, Xbox has a huge jump post-acquisition, straight to $22,338 million. This number lands it close to PlayStation’s $24,410 million. Reading this data clearly shows Xbox and PlayStation now have a much more prominent rivalry in the Big 3. However, it also shows Nintendo needs to step up to join their ranks, or else it might start lagging behind further.

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Nintendo, since its inception in 1889, has been a key player in the gaming industry. While currently it is in third place, Nintendo does have some plans to reach the top spot. And they are betting on their strength, making consoles, to help them reach the top. However, it looks like they have encountered some issues of their own.

Is the Japanese gaming giant placing all its hopes on the Switch 2?

There is no doubt Nintendo Switch was a ground-breaking release. Since its release in March 2017, the hybrid console has become a fan favorite. The ease of playing it on the go, or docking it and playing it on a big screen resonated with the fans, and the sales numbers prove that. As of June 30, 2023, this console has sold over 129.5 million units, with Switch OLED models adding to this figure.

Looking at the success of Switch, Nintendo decided to carry on its legacy with Switch 2. The internet is filled with reports about the upcoming console from the Japanese gaming giant, dubbed the Switch 2. As 90% of Nintendo’s revenue comes from console sales and games, they have a lot to lose if their next console flops.

One factor that contributed to the breakout success of the Switch was COVID-19. During the pandemic, the console saw a huge spike in sales as people wanted to connect with their loved ones. The sales of this console continued at a steady pace after the pandemic too. But marketing the next console will be a daunting task for Nintendo. Fans are already in love with the first one, and it will be hard for the Japanese game giants to replace it.

Many netizens fear that Switch 2 can face a similar fate as the previously released Wii U, which was overshadowed by its predecessor, Nintendo Wii. While it is still in development, Switch 2 can be a make-or-break situation for the Japanese company, as it has poured a lot of research into developing this new console. Apart from a new console, the Japanese company does have other upcoming projects.

What can the Japanese company improve on its game projects?

Apart from Switch 2, Nintendo also has many titles lined up. They are set to release titles like Princess Peach: Showtime!, Mario vs. Donkey Kong, Super Mario Bros. Wonder, and Super Mario RPG by the first quarter of 2024. But it also begs the question of new IPs from the Japanese studio. They are repurposing famous characters from their earlier titles to sell these new entries. Running titles on nostalgia alone can be a tough task.

However, the latest entry in The Legend of Zelda series was a breath of fresh air. The devs took an already popular title and implemented new features that have made Tears of the Kingdom a Game of the Year 2023 worthy title. The fans would also like to see Nintendo do these kinds of innovations in their other titles too. These new innovations and listening to the community will be the key for the Japanese company to reach the top.

They could also explore the collaborative angle as Phil Spencer and Xbox have shown interest in the company in the past. But as for now, Nintendo is coming last in the race between the Big 3. And it is high time they call for action to retain their spot in the big three.

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