How Nintendo Switched Up the Gaming Industry
Nintendo uses the Switch console to normalize consumer gaming habits by targeting fans across multiple age demographics.
Since 1983, Nintendo has produced some of the most successful gaming franchises in history. Franchises such as Mario, Zelda, and Pokémon have become iconic figures in popular culture over the past several decades. With the original Nintendo single-handedly breathing life back into a declining gaming industry, it dominated for an entire decade until being phased out in 1995. Twenty-one years later, Nintendo released the Switch. Despite having intentions to market the Switch exclusively to core gaming audiences, Nintendo did exactly what the name implies and “switched” things up.
Nintendo’s success comes down to their marketing strategy, so when creating the Switch, Nintendo’s philosophy was to increase the number of gamers across all ages. They decided to introduce a console that would attract inexperienced gamers without abandoning their core audience. With the introduction of the Switch, Nintendo realized that they could attract a target audience that is often ignored. They discovered that in the video game industry, there are very few successful companies that target these types of consumers.
According to research, the average Nintendo consumer is about 35 years old and has been gaming for 13 years (Bhasin, 2019). They don’t play competitively, however, these consumers play for fun and entertainment. The faithful group that was raised on Nintendo is now established in their careers and raising children of their own. These consumers have an unfaltering affinity for the classic Nintendo gaming franchises. Along with their aging core market, Nintendo’s unique selling point is their ability to target children and teens. This is something that’s kept Nintendo dominant for most of the last 30 years, but it’s also an aspect of the company that many dislike (Sweeny, 2018).
In 2019, to address younger audiences, Nintendo decided to revise their marketing strategy. They capitalized on popular trends by releasing games like Super Smash Bros. Ultimate and Fortnite, which eventually became the most downloaded Switch games last year. This momentum caused a massive surge of Switch sales heading into 2020. Now in its fourth year on the market, the Switch has been in high demand by people looking for a distraction from being quarantined. This demand attracted a new wave of fans who were once disinterested in gaming (Liao, 2020). The March release of Animal Crossing: New Horizons has fueled much of the quarantine success. This game has emerged as Nintendo’s signature distraction of the pandemic crisis and has helped to propel the strong sales of downloadable games in 2020.
As more countries recover from the pandemic and children return to school, the high demand for the Switch will start to level out. However, to remain competitive, Nintendo must continue to exploit popular trends. Following trends will always be an unpredictable approach, but brands like Nintendo must realize that capitalizing on them yields a competitive advantage and provides a valuable asset to their marketing strategy.
Sources:
Bhasin, H. (2019, May 29). Marketing Strategy of Nintendo — Nintendo Marketing Strategy. Marketing91. Retrieved from https://www.marketing91.com/marketing-strategy-of-nintendo/
Craddock, R. (2020, May 7). Nintendo Earned Almost $2 Billion In Digital Sales This Year, A 72% Yearly Increase. Nintendo Life. Retrieved from https://www.nintendolife.com/news/2020/05/nintendo_earned_almost_usd2_billion_in_digital_sales_this_year_a_72_percent_yearly_increase
Lewis, L. (2020, June 18). Nintendo shares surge in anticipation of continued Covid-19 gaming boom. Financial Times. Retrieved from https://www.ft.com/content/f0e21507-159b-4866-95a3-16769b776f2f
Liao, S. (2020, April 30). Nintendo Switch and ‘Animal Crossing’ are quarantine bestsellers. Here’s why. CNN Business. Retrieved from https://www.cnn.com/2020/04/30/tech/nintendo-switch-animal-crossing-quarantine/index.html
Nakamura, Y., & Amano, T. (2016, October 28). Nintendo’s Big Switch: Q&A With President Tatsumi Kimishima. Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2016-10-28/nintendo-s-big-switch-q-a-with-president-tatsumi-kimishima
Sweeny, A. (2018, June 19). Nintendo on targeting a younger audience than Xbox and Playstation. Nintendo Enthusiast. Retrieved from https://www.nintendoenthusiast.com/nintendo-on-targeting-a-younger-audience-than-xbox-and-playstation/
