Nintendo is always at work trying to release incredible new products that consumers will appreciate. By “appreciate”, it is meant they choose to buy the product when first released at full price. The costs of developing new products are not exactly cheap. No guarantees exist that anything Nintendo manufactures is going to sell. Right now, a lot of fingers are crossed in Nintendo’s offices regarding the development of the Nintendo Switch. The Switch is a really interesting-looking console designed to deliver a mix of home and portable function.
Nervousness abounds with the release of the Nintendo Switch because the company really does need a hit. The company has suffered from loss in market share due to competition from mobile gaming systems. Continual losses in market share mean less revenue running into a company’s coffers. This is an obvious problem. Lesser profits means less money for development. Coming up with something new like the Nintendo Switch becomes a lot more difficult when fewer funds are available.
Another problem, a really serious problem, also presents itself when a company suffers a loss of market share. Popularity declines. How could it not? Fewer people are buying the products the company puts out. A disastrous issue here would be the damage presented to the company’s brand. Once a brand is relegated to “also ran” or “has been” status, clawing back to a prominent position in an industry becomes difficult.
Nintendo has a very storied history in the global gaming landscape. The brand would not exactly be destroyed after one or two years of weak sales. If the Nintendo Switch does not reflect improvements in sales, then the company could be in serious trouble. More and more embarrassing years of market indifference begin adding up. Nintendo has a lot riding on the Nintendo Switch’s March 2017 release.