‘Nintendo Predicted to Have an Additional US$2.5 Billion in Revenue’

By Muhammad Bilal Syahrir

The Switch is getting bigger and bigger in terms of revenue.

Nintendo, thanks to its popular console, Switch is getting more and more success. According to market researcher, Newzoo, the Nintendo Switch is predicted to have an additional US$2.5 billion in revenue.

After its first release in March 2017, Nintendo had a whopping growth in terms of popularity and revenue. In 2018, Nintendo is predicted to have an additional US$2.5 billion in revenue from subscriptions, in-game console transactions, and mobile games.

Worth noting that in 2017, Nintendo had a total revenue of US$9.2 billion. It is predicted to have more revenue in 2018.

Nintendo Switch hardware sales contributed 60% of Nintendo’s revenue in 2017. The number is big when you compare to Sony that only achieved 34% whereas Microsoft 26%. It’s very rare to see a company that has just released their newest console to be this successful.

Nintendo is Predicted to Have US$2.5 Billion in Revenue

Source: Newzoo

It’s also worth noting that Nintendo is a classic company that keeps changing. It does not promote very much for their subscription which is why they only had 3% of total revenue from there. Sony and Microsoft, on the other hand, rely dominantly on subscription revenue.

But now, since a majority of game developers are willing to invest in the Switch, its subscription service is becoming more realistic. Worth noting that subscription relies deeply on game developers to maintain it’s library of games.

Previously we stated that Nintendo’s mobile games will contribute to its revenue. How come? Well, Nintendo’s recent mobile game Mario Kart Tour shows that the company is not willing to quit the mobile industry.

Source: Newzoo

It’s clear that Nintendo is still figuring out a way for its mobile games to be a hit. However, Nintendo’s least profitable mobile game, Fire Emblem: Heroes, was responsible for 80% of mobile gaming revenues.

Mario Kart Tour will be the game that Nintendo relies on since it is the most popular Nintendo franchise by units sold; Super Mario Odyssey and Super Mario Kart are two most sold games for Nintendo Switch.

GDC Survey: 76% Developers Say Their Games Sell Better on Nintendo Switch than on Other Consoles

It's that time of year again in which Game Developers Conference (GDC) shares their State of the Industry Survey for 2018. The main focus was, unsurprisingly, the Nintendo Switch. So, what do developers have to say about the Switch? Find out in the article below. 

Are you a Nintendo fan? What do you think of the predictions? Will they be able to add an additional US$2.5 billion in revenue? Share your thoughts in the comments below.

Source: Venture Beat, Newzoo, Edited by Devi




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