Nintendo’s new invention is the Switch system, which is seen to post a threat to its traditional gaming business. It also faces tough challenges ahead. Nintendo has already set a track record of manufacturing a wide selection of media, but this move can bring down performance of its third-party gaming platforms. Resources to develop this platform will eat up the development of more of its gaming media.
Basking under the rays of success in the mobile space, the company had ambitions to ramp up the supply of its tablets and smartphones. The management has taken risky steps to bridge its home console gaming products with its new smartphone business.
However, they have few capabilities to execute this new strategy. They remain heavily dependent on controlling their own platform ecosystem, falling short of supply in the hardware space.
For one, Switch will utilize flash cartridges unlike the more traditional Microsoft Xbox One and Sony’s PlayStation 4. The cost of cartridges is still higher than the cost of optical discs. If Nintendo should continue using cartridges, it would only translate to minimal profits for them. This strategic problem leads one operational issue to another regulatory issue.
The flash technology should allow Nintendo to lessen piracy with products heavily relying on trademarks. Low storage capability of the Switch will post as another issue. The Switch has an approximately 32 GB of storage, yet it can be perfectly compatible with some media titles.
Speaking of memory, Apple iPad’s 256 GB is tough to beat. Compared to Nintendo’s consoles, the company faces even bigger obstacles in generating digital sales in the absence of a more decent on-board storage space since Activision’s “Call of Duty Infinite Warfare” occupies an enormous 130 GB of storage, while “Battlefield 1” commands 43 GB of memory.
Watch out for more updates from Nintendo.