Nintendo Switch has a Major Sales Advantage over PlayStation, Xbox

Ty at Squish Turtle writes: "Nintendo Switch has a major advantage over Sony’s PlayStation 4 or Microsoft’s Xbox One consoles that will see it dominate the gaming market in its launch year and beyond."

[Thatguy-310]

Can you say reaching much??? Wow hahaha

[RpgSama]

So the sales advantage "that will see it dominate the gaming market in its launch year and beyond" is that they get more money out of accesories? Wow, this was the most idiotic article ever written.

[fenome]

Right, people shouldn't be excited that Nintendo has turned accessories into a physical form of micro transactions. Plus, PS4/X1 have the sales advantage by already actually selling their consoles for a good few years now.

[zaherdab]

Thx for summing it up :P i didnt want to read it

[bouzebbal]

Hahaha really..
People are losing their minds

[GoldenElf]

No.

The point is that retailers have more reason to sell you a Switch than an Xbox or PlayStation.

GameStop, for example, will make say $20 if they sell you a 1TB PS4. But if you buy a Switch, you're likely to buy accessories. Third party accessories have huge profit margins. A $20 carrying case probably gives GameStop $15 of profit.

So when you walk into a store and say "which console should I buy?", the guy at GameStop is going to suggest the Switch first because he will make more money (and commission) on that sale in all likeliness.

It doesn't mean you're not allowed to buy a PS4, or that PS4 wont sell, or that no one will want to buy a PS4 anymore. It simply means that Nintendo has thought about the sales process in a much more considered way than Sony or Microsoft and have made the Switch compatible with high margin accessories.

I guarantee that's the number one thing retailers look for when it comes to stocking these things. Add on sales.

What accessories can you buy for Xbox or PS4? A headset? How many people (non-hardcore gamers) are buying one of those? You don't need a memory card. You don't need a carrying case, or a screen protector, or a car charger.

[_-EDMIX-_]

Lol , this article is full of slow

[Omnislashver36]

This article gave me diabetes.

[rainslacker]

Trying to figure out how making more off peripherals is somehow going to cause the system to sell better. Most consumers don't really care about a companies profit margin. If they did, they'd be willing to spend more than $60 for a game so the stores can actually make a decent profit off it.

If it's about how much the stores make, then I doubt that's going to be that big of a deal. The big retailers have marketing deals and buy shelf space, and those retailers will push what they get paid to push. Profit margin from accessories means nothing because of the following scenario.

You sell 100 widgets from company A which sell an additional 2 accessories per sale, with a total profit of $20.

You have another 200 widgets from company B which sell an additional 2 accessories per sale, with a total profit of $15.

profit from company A = $200
profit from company B = $300.

It's more profit by volume, and right now, Nintendo doesn't look to be in a place where they're going to sell enough to make up the difference.

All that being said, it's pure assumption that the profit margin, or dollar amount is higher through Nintendo's accessories. If their MSRP is higher, the purchase price is likely higher. This actually works against Nintendo, because it means a higher investment in a product from a company which may not sell, meaning higher chances of actually taking a loss on the accessories as they end up putting them on clearance to simply get them off the shelf. Nintendo is going to have trouble here, because the WiiU was harsh on retailers.

[Phunkydiabetic1]

I kept waiting for the "Sponsored by Nintendo" disclaimer.

[CyberSentinel]

Good points, but there still Remains 2 things in order for retailers to make a sale, supply and demand.

[Erik7357]

It's good that it's not launching in fall/winter I guess. Has time to prepare to have the right supply in the biggest shopping season.

[Neonridr]

People still have to buy the hardware first before accessories even become an issue. The Wii accessory market was so lucrative because there were 100 million owners of the console. Even if only 1% of the population bought the accessory that was still 1 million accessories sold, which must have been crazy lucrative.

But without an install base, nobody will buy the accessories. It is nice seeing a lot of different things popping up already, might be able to find some cheaper alternatives to some of the expensive stuff.

[GoldenElf]

Correct, but the point is that retailers will push Switch more than the others because they stand to make more money on the accessories.

The article is more about the "time of sale" attach rate potential, rather than after sale purchases.

[Neonridr]

yeah that's true. There is definitely a lot more potential for accessories since it also captures the handheld market too.

[rainslacker]

It's pure assumption that they will make more per accessory.

Accessories are where retailers make money off all console sales. If you make a few more dollars off the Switch, but sell half as many, then what real incentive is there to push it?

It's a matter of more profit through volume, and it's how most major retailers operate for things like this.

The profit margin would have to be significantly higher for this to really matter.

Even then, the demand has to be at a point where the retailers would make more by pushing those higher priced accessories, over taking the easier sell by selling something that more people want.

[FallenAngel1984]

By being more expensive in the long run?

[chrisx]

No it doesn't

[PapaBop]

Outside of Nintendo fans, who else exactly are they really pleasing? Gaming crowd? Online functionality through the phone would beg to differ. Casuals? Overpriced accessories and paying upwards of £60 for games when they're used to either getting them free or for under a fiver? Nope not them either.. the only people Nintendo are going to please are the same people who bought the Wii U, the ones who love their games and would buy into whatever hardware they make because they know that for all their shortcomings, Nintendo will continue to make great games.

[Neonridr]

actually 3rd parties are going to please everyone because they are going to provide cheaper alternatives to Nintendo's pricey strategy for accessories.

[Derceto]

There's little point in having a dump truck of accessories when it turns the customer off to buying the console in the first place. Wow. Cart before the horse much?

[Goldby]

so what im reading is nintendo is in bed with Gamestop.

thats it. IM F*ING DONE!

*walks away and slams door*

I'LL BE IN MY TRAILER!

[Pancit_Canton]

Good luck dominating 60 million console sold.

[Fishy Fingers]

Christ, its bad enough that many 'gamers' play at being cooperate shrews over sales figures now we have to pretend that the bottom line for retailers is important?

[rainslacker]

There's merit to the principal being discussed, but it assumes fairly equal demand across competing products. There is no real evidence so far that Switch will match the demand of PS4, and at this point, even if it will match X1 or Scorpio. There is also no evidence that profit or profit margin is going to be greater for the retailer. In fact, it ignores that more investment is required by the retailers to stock those products, thus increasing risk, thus actually working the opposite way in which the article assumes.

[DragonDDark]

Both are cheaper than the switch and do a lot of things better.

[RAM0N]

And both are bundled

[Neonridr]

minus being a handheld.

[DragonDDark]

Remote Play- Play Anywhere

[Neonridr]

@DragonDDark - how do you do that on an airplane for example? I have a Vita and would love to know.

[Mr Marvel]

Accessory prices are part of the reason I'm cancelling my pre-order.

Although the abysmal software lineup for 2017 is the main reason.

Super Mario Odyssey is the only game I want that I can't get elsewhere & even that I doubt will release until 2018.

Zelda is coming to Wii U, Mario Kart 8 I own on Wii U and Ultra Street Fighter II: TFC will almost certainly come to PS4.
There's not 1 other game I give a crap about.

[Neonridr]

good, give your pre-order to someone who actually wants one then. No need to make a big deal about it.

I would hold off though, 3rd parties stand to make a killing offering cheaper alternative accessories. Software will come, PS4 and XB1 were full of remastered ports when they released. Besides, we've only seen about 30 of the supposed 80 developers making games for the Switch. I expect to see a lot more revealed at E3. Mario will come this holiday, I fully expect Nintendo to make that a priority.

But if you aren't ready, that's cool. Hang back, wait until the fall/holidays when there are more titles available. There will most certainly be a holiday bundle that may save you a few bucks with a game packed in or something. Maybe then it will be worth it to you.

Don't know why you need to make a big drama statement about it. It's not for everyone, and there's nothing wrong with that.

[XXanderXX]

Hope its true , would love to see Nintendo dominate the industry with no rival in it rearview mirror ever . Can't wait for the day it puts all others to shame .

[Razzer]

I'm going to stick this in my "hey look....pigs are flying!" folder.

[XXanderXX]

Awesome cool ,but honestly hope it comes to pass .

@Goldby that happens now and has been going on , so what's the difference now and when Nintendo dominates .

[NatureOfLogic_]

lmao

[Goldby]

XxanderXX do u really want to stop into your local gamestop looking to buy a game, or subscription for nintendo, and for 10 minutes be bombarded by edge points card beninfits, only to be bombarded for 10 minutes about accessory you most liekly already know about for the switch. NO THANK YOU!

[johndoe11211]

Legit question, are you being sarcastic?

[XXanderXX]

No am damn serious , I want Nintendo back on top where it belongs , Way before these last two POS joined the industry.

[Goldby]

XXanderXX

just a heads up. one of the POS was asked by Nintendo to help them build a console. and when Nintendo backed out. Sony took the idea and ran with it.

[drunkenspy007]

I wonder if they paid the author to smoke crack then write this.

[badz149]

even crack is not THIS effective. try ecstasy!

[Muzikguy]

Accessories?! 😂😂😂 SERIOUSLY?? Was this guy born yesterday? Accessories are a burden more than anything. Just look at past consoles and how well accessories sold. They'd have to sell a hell of a lot of accessories to compete with 60 million or consoles already in consumer's hands. That won't even happen during its lifetime

[Goldby]

from a retailers perspective, Accessories are the money maker as its cost low to buy them and sell for alot more.

all of those items on the way to the cashier in the line up are "100% profit accessories" consisting of chcolate bars in some cases, random plastic toys and all that gum bug. the reason theey are called 100% profit accessories is because of the low cost and that people dont go to best buys or eb games specifically to buy those items, instead they are either convinced or purchase it on a whim or feeling, creatign a pure profit sale that wouldn';t have happened had the customer not been there for something else.

in eb games and stuff that is the joystick guards and wrapps for controllers and stuff

[rainslacker]

True, probably more accessories will be sold to the current install base of the PS4, and X1, than we'll see sell through Switch. Launch day there will be a surge of accessory sales, as is normal for early adopters, but after that, the PS4 will certainly crush Switch on DS4 sales alone. I mean, switch comes with a way for two people to play with one controller(by packing in two controllers). PS4 doesn't do this, meaning that people are more likely to buy one. Then there's PS Camera which has a healthy profit margin. Then of course the games. When it comes to the games, while the profit margin sucks for retailers, the larger install base of the PS4 and X1 is going to abolish Nintendo in this area.

Whole article is misguided, and has a complete lack of knowledge of how the retail market works.

[bluefox755]

lulz

[kayoss]

Some author just want to watch the world burn.

[UCForce]

We will see about that. But right now, this is very questionable from Nintendo.

[NotanotherReboot]

can you please add me on PSn im getting ps4 pro in a week

[Artemidorus]

Top trolling from this author

[Petebloodyonion]

I recall Microsoft trying a similar strategy with the Xbox1 by trying to please to publishers who were complaining about the profit loss on used market.
Last I checked it didn't helped them so I don't see how being non-consumer friendly helps selling more Switch!.

[Psychonaut85]

HAHAHAA! Oh damn, between this and Brianna Wu thing, N4G is full of jokes today.

[OzzY-waZZy]

Plot has been lost.

[ironmonkey]

Oh really tell that to the wii u

[shauzy]

says who

[Tross]

Do they mean an advantage in underpowered hardware? Because Nintendo is good at that.

[brewin]

What people are underestimating here is the buying power of the soccer moms and dads. Nintendo knows they can sell multiple systems to millions of families across the world as each child will want their own Nintendo Tablet. This is very similar to iPad or any other tablet. I know several families where each kid has their own $500 tablet so why not a Nintendo one? Look at how many 3DS XL systems they sold for $200 a pop! I know families that have 5 kids and each has an XL AND an iPad. Sure the Switch may not be wholly aimed at hardcore gamers, but Nintendo is still alive and they havent really aimed for hardcore gamers for several generations now. Long term, the Switch will find its success and if it doesnt, Nintendo can still just as easily utilize its IP in several lucrative ways. But my money is on Switch being a smashing success.