Nintendo to Launch Two New Switch Models

"Nintendo to Launch Two New Switch Models"

Nintendo Co. is launching two new models of the Switch later this year. The Switch can be played as a hand-held console or connected to a TV or a larger screen. One model has enhanced features and is targeted towards the more devoted video game players. On the other hand, the cheaper model is targeted towards the casual video game players and it does not have some of the features from the original Switch. The two new models will be revealed at the "E3 videogame Expo in Los Angeles in June" and shortly after they will be released to the public for sale.

80% of Nintendo's revenue comes from the sales of the Switch, which was introduced in 2017. By the end of this fiscal year, it is estimated that 17.9 million units of the Switch will be sold and decrease to 17.4 by next year. 

In November 2013, Nintendo's competitor Sony introduced the PlayStation 4 and in September 2016, Sony enhanced it with a cheaper version and then two months later a high-end model was also introduced. This has made sales of the PlayStation 4 remain strong.

Nintendo is also adjusting its suppliers for the new models. Suppliers and third-party game developers say Nintendo is preparing to release new game titles from well-known franchises, such as “Animal Crossing” and “Pokémon,” to bolster Switch hardware sales. One executive at a Nintendo supplier said, “Some people say sales of Nintendo’s devices usually weaken in the third year, while others say games to be released this year are stronger than ever before.” 

I chose this article because Nintendo is known to make different versions of the same console but with upgraded versions. It is interesting to see how people will react to the new two models due to the features they will have. 

This article relates to our marketing class because Nintendo has already chosen its products to sale and what suppliers are going to distribute them (2 of the Ps). They are only missing 2 of the Ps which are price and promotion. They have to set prices for both consoles and advertise them in order to sell. They already have some publicity because people now know that there are two new versions of the Switch being released later this year. 

Karla Gorostieta

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Published by By Takashi Mochizuki on March 25, 2019 2:19 a.m. EThttps://www.wsj.com/articles/nintendo-to-launch-two-new-switch-models-11553494773?mod=cx_picks&cx_navSource=cx_picks&cx_tag=poptarget&cx_artPos=5#cxrecs_s