One. The Nintendo Switch pushed by the PS5, the back heart is now pushed.
Nintendo's fiscal year, which ends from April 2022 to December 31, announced the results of the first quarter of 2023. Nintendo's report card was lower than expected.
The biggest cause of poor performance is the decrease in sales of Nintendo Switch.
Nintendo's switches are not new, but Nintendo seems to have unexpectedly falling sales. Nintendo estimated the decline earlier, but at least last year, he expected a slow decline. Although it was expected for a year, the annual sales target was similar. However, the sales volume of switches in the first and third quarter of 2022 was 14.91 million. In the same period, the number of PS5 sales, which recorded record sales volume over the same period, exceeded 12.8 million units, but it is 21.3% from the previous year's sales of 18.95 million units.
The Nintendo Switch also celebrated its seventh year. Even with the Nintendo model, 3DS, the follow-up, was released six years and three months after the DS launch, and the game cube took five years and the Wii in Wii. When I turned to other companies, it took seven years to move on PS4 and Xbox One to PS5 and Xbox Series X | s.
In particular, both Sony and Microsoft, both Sony and Microsoft, filled the gap with an improved console before the next generation of models. If the company has increased its life by drawing the limits of the past, it has now been difficult for the highest specification console to follow the hardware performance development.
However, the Nintendo Switch, which adopts two-type hybrid methods, has a relatively insufficient performance rather than a device that can only be mounted since its launch. The release of the time when the improved version was expected to be released was the same OLED version that emphasized the larger and cleaner screen. As a result, the switch is relatively sluggish, unlike the PS5, which has solved some shortage of semiconductor and lack of quantity, and sales volume soared to overwhelming performance.
This does not mean that an alternative came out. After the earnings announcement, Nintendo's CEO Kurosawa Shin taro said that the sustainable growth of the Nintendo Switch, which is in the seventh year, is difficult to imagine. The sales strategy also said that it would increase the new demand of the title, and to increase new demand and to replace and purchase existing buyers. Unless the next generation of devices are released, it's hard to see the next quarter.
2. Zelda raises prices without reason, Metro id Prime has no new work.
Nintendo conducted its showcase Nintendo direct a few days after the earnings announcement. Although many multi-platform titles such as PCs and PS have been introduced around third-party games, they have been introduced by the expectation of the expected Metro id Prime-related works, the new series of Professor Leighton's return, and the switch online subscription service of Game Boy and Game Boy Advanced The legendary Tiers of the Kingdom of Zelda, one of the most noticeable titles this year, has been released at once.
However, Zelda's legendary Tiers of the Kingdom, which had a huge expectation, was released with the Nintendo Game page and the expectation was changed to anger. Nintendo First Party Title has set $59.99 at a full-price price. However, the Tears of the Kingdom is priced at $69.99, the highest price for a single title.
Although the price increase of the game has been discussed steadily, it has been difficult to push. The $70 full-priced set around the next-generation console such as PS5 and XSX was possible because of the increase in costs and quality improvements due to the development of the next-generation console game development. The surprise price increase in the Nintendo Switch title, which is hard to find other than the software improvement, was not a pleasant situation.
In fact, there was a strong backlash around the Western game community. Major media dealt with the problem, and the possibility of a batch price increase in the switch title also emerged as a hot topic. Nintendo made an exceptional statement for explanation. The price itself is set according to the game and the situation. In fact, many titles released with Nintendo Direct were released to $60.
On the contrary, in the case of Zelda, it is not confirmed that it is a special $70 sales title. Depending on the situation, games with high anticipation and development costs can be sold for $70.
For Nintendo, this Western response is not good. Sales of software titles in the first and third quarter of fiscal year 2023 rose year-on-year in almost all regions. The only reduced area is the Americas. As a result, sales of 19.5% decreased compared to the same period last year, which resulted in the final result of the total software sales decreased by 4%. If sales decrease in the Americas continues, earnings can be accelerated.
Metro id Prime Remaster also did not fully reflect fans' expectations. Beyond the side-scrolling action adventure, which is the home, it is now a greater loved Metro id Prime series, but the new film, Metro id Prime 4, is still a new game play video since 2017. On the contrary, news that the development itself is reversed and newly developed in the middle is reported, and the Nintendo Direct was not released. Unfortunately, it is necessary to be satisfied with to remaster.
One'. Despite the poor performance, Nintendo's soft power
Nintendo's situation is not very good.
However, in the meantime, there are some lights, so it is a light software achievement despite the sluggish hardware sales. As of 2023, Nintendo produced two new platinum sellers (more than 10 million copies) titles.
Pokémon Scarlet/Violet sold 2,061 million copies and Platoon 3, with 10.13 million masterpieces, as representative works of Japanese medium-sized game companies, which have been in the series for decades, are not easy to sell. Nintendo Switch sports were also sold 861 million, and a total of 19 titles sold over 1 million. In particular, this record is the record until December 31, so the new Pokémon's new work, which was released on November 18, was shipped in less than two months.
Mario Cart 8 Deluxe, which is one of the essential titles for switch purchases, animal forests, super smash Brothers Ultimate, and Zelda's legendary Breath of the Wild has 52 million, 41.59 million, 3,044 million, and 29 million copies, respectively. It was sold.
High sales of these works reveal Nintendo's IP power. Animal forests, Great Struggle, Zelda's legends, and Pokémon are already a long-standing franchise for a long time in Nintendo. Platoon, which has been introduced in the blank period of over 10 years, is also a new title.
This IP power is revealed in new works as well as transplants and expansion. The Metro id Prime Remaster, which was released immediately after the Nintendo Direct, could not solve all the thirst for the launch of the new work, but it is the highest score of 96 points and the highest rating of the game this year.
Brilliant Diamond/Pearl GIA's remake, Brilliant Diamond/Shining Pearl, has a great criticism in the evaluation. However, more than 14 million copies were sold in a short period of time, and the box office of Pokémon IP was properly proved. Of course, if this unfortunate quality continued, the fans would have left one by one, but the Pokémon Legend Areas, which was introduced by Game Eric, who could be the main developer, proved that it was only a while.
It is certain that Nintendo knows that he will make a game that will be sold based on a solid IP, whether it is a franchise or a remastered title. Even Mario Cart 8 Deluxe, the most sales of the switch, is one of the many genre games of Super Mario IP, and is transplanted as a Wii, which adds various additional elements.
The cost of game development increases significantly, and numerous franchises will be darkened by the user evaluation, and even the future is interrupted without guaranteeing the future. However, Nintendo is able to post record sales at any time with the variations of IPs already have, and the variations of games that stretch there. If you are a global developer, can you say it's a game.
2'. Nintendo, who has to buy even if it is expensive, makes a game that has no choice but to live.
In that sense, Zelda's new legendary sales of $70 are also meaningful. There was a strong criticism, but in the major survey of the community, the result of 'still buying a game' was much higher than that of the fact that it was not.
Nintendo has been released as the most anticipated and most anticipated title of Zelda's legendary Breath of the Wild. It was a 'pure' title, with high expectations before the launch, and now there is no replacement game even if the price is higher. There was a solid franchise management, so you can continue your price policy despite the big backlash of game fans.
And the release of Tears of the Kingdom is considered a key card in the US market. The core titles of the last three-quarter were Pokémon Scarlet/Violet, Platoon 3 and Nintendo Switch Sports. However, this earnings announcement re-accepted the results that other titles were not the title that could focus on the US market except for Pokémon Scarlet/Violet.
Platoon 3, which sold 1,013 million copies, has a much more proportion of Japanese sales than overseas.
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