Nintendo may follow in PlayStation's footsteps and focus on subscription, analyst believes
Journalist Christopher Dring spoke with analyst Matthew Ball, who previously shared disappointing findings about gamers on major markets spending less time playing and losing interest in video games. Now the expert expressed his opinion on the potential direction of Nintendo — which could be atypical for the Japanese company.
According to Ball, Nintendo already “Mario Kart World (purchasing it saved $30). Meanwhile, the hybrid device has only 256 GB of free space for games and other content. This reduces production costs and forces players to buy microSD Express cards.
Ball did not rule out that Nintendo may have to raise console prices in the future. However, the company might follow in Sony's footsteps, which not only maintains the PlayStation 5 price but even sells it at a discount during major sales — all thanks to revenue from PSN. To do this, Nintendo would need to increase the price of the Nintendo Switch Online subscription and attract more players to it.
Overall, Matthew Ball thinks the memory crisis and its impact on electronics prices may worsen in the future. Moreover, price increases will affect even the existing audience. For example, those who broke their console will have to buy a new one at a higher cost than it originally was.
Regarding cloud services, Ball remains skeptical as before. However, he allows for short-term growth in streaming services, whose cost per game time might be advantageous compared to purchasing full hardware. For instance, for players who just want to play a hot new release.
The analyst also expects that sooner or later advertising will appear in games on PC and consoles. It has already flooded many areas: from everyday apps and subscriptions to online cinemas to AI services. In "one form or another," advertising will likely arrive in major games as well. Without it, further market growth, studio development, and the release of diverse novelties are allegedly impossible.