On the occasion of the announcement of the Switch 2, Olivier Mauco was a guest on France Info’s morning show (France).
Available in audio(french) or written transcription.
Transcription :
It’s 6:34 a.m. on France Info. Nintendo unveils the first images of the Nintendo Switch 2, its new games console due for release in April. Three questions this morning for the President of the Observatoire Européen du Jeu Vidéo, who teaches at Paris Dauphine University. Good morning, Olivier Mauco.
Hello.
So, the Switch is a myth. 146 million units sold. It’s the third best-selling console in the world. Is Nintendo aiming to do as well with its little sister, the Switch 2?
Yes, absolutely. It’s to continue what they’ve been doing for several years now, namely building a very solid ecosystem of games with strong licenses that appeal enormously to our gamers and that have confirmed the various successes they’ve had over the years.
So here’s a little hint: you can tell me what you think. Nintendo’s share price plunged more than 6% yesterday after the release of its first images. Is this a sign of disappointment, perhaps?
No, it’s still difficult to anticipate because it’s a launch that’s quite perilous in the sense that, as you said, the Switch is a huge success, so it’s always difficult to make a switch to something new. It’s continuity, in fact, not a major break with the past, but we’re waiting until early April to find out a lot more, because it’s an announcement today.
It’s interesting what you say. I get the impression that there’s a whole management and marketing system around it, a suspenseful set-up.
We go episode by episode. It’s all very carefully thought out to make fans want more. Yes, it’s true that Nintendo’s communication strategy is very well mastered. It’s something they’ve been doing for years, in fact. They’re very good at communication. In a way, they invented modern video game communication. Since their Nintendo Direct, they’ve been used to setting the pace. And here, they’ve let the end-of-year holidays pass. It’s a good time for video games to launch the communication strategy around the launch of this console.
So this is really the beginning. This is it, we’re entering the Switch 2 arc, and we’re going to have all the announcements as we go along, including announcements about the most eagerly-awaited games. Which ones might those be, for example? Will it be a sequel to one of the big name games?
Animal Crossing, for example?
Yes, absolutely. What’s certain is that Nintendo always launches its consoles with its flagship licenses. So, at the very least, Mario. Right now, Mario 9 is almost officially announced, with new features.
In any case, players are having fun decoding them. And then we’ll certainly have the whole gallery of intellectual owners they have, who make them so successful. From Zelda to Mario Smash Bros, to all the variations that exist.
So Olivier Mauco, Nintendo generates just over 90% of its revenues from its Switch. Is the success they’re aiming for with the Switch 2 vital to the group’s survival?
Let’s just say that for the moment, there are no survival issues for Nintendo, quite simply. They’re doing very well. The difficulty is always replacing a huge success with something new, which may not be all that necessary, given the performance of the consoles. So, logically, it’s a bit of a problem for people in a dominant position. And with so many resources at their disposal, it’s all about renewing success and making it last.
And what makes Nintendo so different from Sony, its biggest console competitor?
We’re talking about two different video game philosophies. Nintendo is very much oriented towards social, multiplayer games, and then around its licenses. For the last twenty years or so, the game has been played in the 90s and mid-90s.
In fact, at one point there was an attempt to bring Sony and Nintendo together around a console, and in particular a CD player. That’s when Sony stepped in. And Sony’s approach is, let’s say, more of a play experience, more cinematic, grand spectacle, very blockbuster, which makes the video game what we call a triple-A blockbuster.
And not the same prices either.
Let’s say it’s not the same development costs, that’s the first point. The final price is the paradox. In other words, a Mario or Uncharted game will end up costing almost the same to the consumer.
On the other hand, development costs and the teams involved are not the same. So it’s not quite the same vertical, it’s not quite the same way of producing video games.
Thank you very much Olivier Mauco, you’re President of the European Game Observatory, and you’re with us this morning on France Info.