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26 Apr 2023 Acquired Benchmark’s Mitch Lasky and Blake Robbins on The Art of Business in Gaming
“I think we will learn a lot about what their strategy is going to look like for the next decade in the next 90 days.”
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- 26 Apr 2023
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…This is the bull case on the Switch that we've been talking about, which is, at some point, Nintendo has to wake up. I assume it will be with the Switch line and say, wait a minute, we shouldn't come out with a completely new console and have to re-aggregate our whole fan base again. We should iterate the Switch and make it super backwards compatible, and bring that 100-plus million person install base with us across all the hardware we release in the future so that we can make this incredibly compelling thing to third-party developers, Mitch, as you're talking about, their app store opportunity, but also preserve this ridiculously durable first-party revenue thing that we've had, especially for the last six years with the Switch, but basically through Nintendo's whole life, once their consoles get to scale. Absolutely. I think we will learn a lot about what their strategy is going to look like for the next decade in the next 90 days. I think if they do come to market with a non backwards compatible device, it's back to the Awada era. It's back to, we're a hardware company, and we have proprietary software, which helps us sell hardware, and it's back to the toy. If they come out with a fully backward compatible switch, an open app store, and they really try and improve that position of third-party revenue on an active user basis, that's the new Nintendo. That's the Nintendo that's going to play the modern industry. That is so compelling, at least for me as a consumer, if they do that. A game like Hades, an incredible game, indie game, the Switch is by far the best platform to play that on. I've sat there for years staring at my Switch being like, Nintendo, why do you not embrace this dynamic?…
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