The Game Business: It was the biggest console launch of all time, but was Nintendo Switch 2 a success for third-parties?

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NeoGAF's Physical Games Advocate Extraordinaire
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Via The Game Business

One of the big conversations around Nintendo Switch 2 is whether the machine would deliver for third-parties.

Major companies including EA, Take-Two, Microsoft, Ubisoft, Sega, Capcom, Bandai Namco, Square Enix, CD Projekt and Konami have committed support for the platform, and in our travels, they've talked about how Nintendo is actively trying to push third-party games this time around.

The launch of Switch 2 was huge, with 3.5 million consoles sold in just a few days, making it the fastest-selling games machine in history. We know that Mario Kart World was clearly the No.1 game, but what about those third-party releases? Games such as Cyberpunk 2077, Bravely Default, Hitman, Street Fighter, Hogwarts Legacy, Civilization VII, Split Fiction, Sonic, Yakuza and so on…

Let's find out.



What are the numbers?
  • 62% of Switch 2 physical game sales in the US (launch week) were from first-party games, excluding the Mario Kart World Bundle (Circana)
  • 48% of Switch 2 physical game sales in the UK (launch week) were from first-party games, excluding the Mario Kart World Bundle (NielsenIQ)
  • 86% of Switch 2 physical game sales in the UK (launch week) were from first-party games, including the Mario Kart World bundle (NielsenIQ)
  • By comparison, for the launch of Switch 1, 89% of UK physical game sales were from first-party games (NielsenIQ)
  • And for the launch month of Switch 1 in the US, 81% of US physical game sales were from first-party games (Circana)
  • CD Projekt's Cyberpunk 2077 was the best-selling third-party game during the launch of Switch 2, beating launch sales of CD Projekt's The Witcher 3 on Switch 1 (NielsenIQ)
  • Sega was the No.3 biggest publisher on Switch 2 at launch (Circana)
  • When it comes to games released both physically and digitally, over 80% of Switch 2 game sales came from physical retailers (data shared by publishers)
What do the numbers mean?

Although third-party publishers appear to have done slightly better during the launch of Switch 2 compared with Switch 1, it's hard to describe these statistics as positive.

Most third-party Switch 2 games posted very low numbers. One third-party publisher characterised the numbers as 'below our lowest estimates', despite strong hardware sales.

The improvement over the Switch 1 launch is also slightly misleading. For starters, there were more consoles sold this time. Plus, the Switch 1 only launched with five physical games: The Legend of Zelda: Breath of the Wild, 1-2-Switch, Just Dance 2017, Skylanders Imaginators and Super Bomberman R. By comparison, the Switch 2 had a wider selection, with 13 physical games available at launch.

As usual, there are a number of things to consider with these early figures.

Around 80% of all Switch 2 console sales were of the Mario Kart World bundle, and we would expect some of the remaining 20% also picked up Mario Kart World. People buy Nintendo consoles for Nintendo games, and it would be expected that new users – particularly those who are buying a Nintendo console on day one – would begin with Nintendo software. As a result, it's possible third-party game sales will occur later, once players have had their fill of Mario Kart.

Meanwhile, Nintendo did not send out Switch 2 units to media ahead of release. That meant there were no reviews for any of these third-party titles at launch. For consumers who may have wanted to pick up a second game alongside Mario Kart, there were no critical reviews available for them to base their purchasing decisions on.

One of the drawbacks for third-party publishers is the fact that Switch 2 is backwards compatible, with some older games (including popular titles like Pokémon Scarlet and Violet) receiving technical improvements on the new hardware. In other words, even if Switch 2 owners are looking at other games to play post-Mario Kart, they have other options available beyond the slate of third-party titles. This was not the case for Nintendo Switch 1.

It's also worth noting that almost all of the Switch 2 third-party games were ports of older games. Considering the high cross-over between Switch owners and PlayStation/Xbox players, it's not unreasonable to suggest that a lot of Switch 2 owners already own these titles.

What's more, many of the titles are using 'Game Key Cards', which require users to download the game once they've put in the cartridge. This has proven unpopular amongst core audiences, who appreciate the plug and play nature of Nintendo Switch. It's noteworthy that Cyberpunk 2077, the one third-party game that has done reasonable numbers, runs off the cartridge and doesn't require a download. Here's a quote from our interview with CD Projekt Red's Jan Rosner:

"A plug and play experience is a really cool thing," he told us last month. "We've already seen from the original Switch that Nintendo players are quite receptive to that."

He added: "Do not underestimate the physical edition. It's not going anywhere and Nintendo players are very appreciative of physical editions that are done right."

We'll be keeping a close eye on third-party game performance on Nintendo Switch 2 in the weeks and months to come.
 
Just tell us how Cyberpunk did excluding exclusions.

  • CD Projekt's Cyberpunk 2077 was the best-selling third-party game during the launch of Switch 2, beating launch sales of CD Projekt's The Witcher 3 on Switch 1 (NielsenIQ)
 
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I hope Cyberpunk is a success and shows other third party publishers that key cards are NOT appreciated for physical games on Switch 2. Cred to CDPR for not cheaping out.
 
It will only get lower from third parties. They will have an harder time to sell old ports during the Switch 2 era, because they are not facing an emptly slate like during the early Switch era but are competing with all the output the Switch era had.
 
I hope Cyberpunk is a success and shows other third party publishers that key cards are NOT appreciated for physical games on Switch 2. Cred to CDPR for not cheaping out.
Speaking of that, I saw this tweet from a publisher of physical games a few hours ago. If you have a Twitter account, make sure to let the publisher know that you want full physical releases on cartridge and not just game key card releases.

 
Speaking of that, I saw this tweet from a publisher of physical games a few hours ago. If you have a Twitter account, make sure to let the publisher know that you want full physical releases on cartridge and not just game key card releases.



I don't have Twitter but it's a great initiative to gauge interest. I hope people with an account participate.
 
Like many, I've mentioned before Nintendo has had a rough connection with third party devs since Wii, and its a reason the cost of their systems is even less value to a lot of people who don't think paying £500 to play a Zelda, a Mario, and a Donkey Kong game is worth it (plus paying the inflated prices for the games on top, about £60-£70 each)

Yeah, they had some weird choice ports on Switch 1 that felt more like a science experiment, because if you have played / owned those games elsewhere there was absolutely no reason to buy them again at that price or overall quality for most of them.

If they get proper third party day one support, that would only be a massive positive for them and their fans, but past few gens say otherwise. Let's be honest too, their first party devs (meaning their deal with Game Freak or exclusives like Bayonetta 2) made some real stinkers last gens too, mostly in terms of visuals and performance. With all the A.I / machine learning in the new system, maybe that will help.
 
On Nintendo, MK will be sold now, in a month DK and the Switch remasters that will now fill in the gaps like the WiiU games in the Switch era, the third-party titles have it very difficult and with the key cards and empty cartridges even more so, they will sell very little.
 
I have pointed those questions in another topic a few days ago, and well, most of people just gave nothing but unreasonable excuses. Right now, most third-parties keep pulling Switch 2.
 
These are probably the games that underperformed according to publishers:
1: Yakuza 0.
2: Street Fighter 6.
3: Split Fiction.
4: Bravely Default HD.
5: Hitman.

And the games that performed well from publishers point of view:
1: Cyberpunk.
2: No Man's Sky Switch 2 upgrade.
3: Fantasy Life Switch 2 upgrade.
4: Guardians of Azuma (Decently high on the Switch 2 eshop in Japan).
5: Deltarune.
 
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These are probably the games that underperformed according to publishers:
1: Yakuza 0.
2: Street Fighter 6.
3: Split Fiction.
4: Bravely Default HD.
5: Hitman.

And the games that performed well from publishers point of view:
1: Cyberpunk.
2: No Man's Sky Switch 2 upgrade.
3: Fantasy Life Switch 2 upgrade.
4: Guardians of Azuma (Decently high on the Switch 2 eshop in Japan).
5: Deltarune.
Sega is the #3 biggest Switch 2 publisher rn. So Yakuza/Sonic x Shadow couldn't have gotten soft numbers imo.
 
Sega is the #3 biggest Switch 2 publisher rn. So Yakuza/Sonic x Shadow couldn't have gotten soft numbers imo.
He tries to fit his narrative that only childish games sell on the Switch. His narrative fells appart when considering Cyberpunk sold extremely well, so he adedd it anyway
 
I am way outside of "mainstream" gaming, but is this an actual factor? Are review scores that important for the average folks who play games?
Apparently not! Fastest selling console: no reviews at launch.

Sega is the #3 biggest Switch 2 publisher rn. So Yakuza/Sonic x Shadow couldn't have gotten soft numbers imo.
And Sonic Crossworlds is going to make bank on Switch 2. Sega is going to bring everything they make to it.
 
Apparently not! Fastest selling console: no reviews at launch.


And Sonic Crossworlds is going to make bank on Switch 2. Sega is going to bring everything they make to it.
IGN just rated Switch 2 lower than PS portal in their review. Not that i think it will make much difference from a sales perspective.
 
What's more, many of the titles are using 'Game Key Cards', which require users to download the game once they've put in the cartridge.

It's noteworthy that Cyberpunk 2077, the one third-party game that has done reasonable numbers, runs off the cartridge and doesn't require a download.
Happy If You Say So GIF


Might be becuase it's a solid/impressive port, but I hope it's indicative of people voting with their wallets.
 
It's not surprising, you buy a Nintendo console because of Nintendo games. 3d party games will have little success, especially if people have alternatives.
 
It will only get lower from third parties. They will have an harder time to sell old ports during the Switch 2 era, because they are not facing an emptly slate like during the early Switch era but are competing with all the output the Switch era had.
I remember fondly all my Madden and CoD sessions on my Switch.
imagination jerking off GIF
 

What's more, many of the titles are using 'Game Key Cards', which require users to download the game once they've put in the cartridge. This has proven unpopular amongst core audiences, who appreciate the plug and play nature of Nintendo Switch. It's noteworthy that Cyberpunk 2077, the one third-party game that has done reasonable numbers, runs off the cartridge and doesn't require a download.
 
It's almost pointless to base sales trends off physical sales these days. This is especially true with the key cards. I'm not a physical game fanatic like some people are here, but what is the point of them? If I don't plan on selling my games (which I don't), they offer almost no advantages and multiple disadvantages. Might as well just go digital. And given that first week sales are dominated by the "hardcore" crowd, I imagine there is a lot of negative feelings about those cards.

Meanwhile, it seems like Cyberpunk is doing ok. And I think there is evidence that Street Fighter is doing solid numbers as well:
- Between Jan 1 and March 31, SF6 sold ~200k copies to bring it from 4.401 to 4.60 million.
- Between Apr 1 and June 10, SF6 sold at least 400k copies, bringing it to over 5 million sold.
Based on that, and assuming no unlikely spikes in sales on PS5 and Steam, we can assume SF6 on Switch 2 probably sold in the vicinity of 200-300k in its first week. Seems like a pretty decent amount.

I'm curious who the "lower than lowest" publisher is. Konami with Survival Kids? That seemed to be completely ignored. WB with Hogwarts? The super cheap upgrade path from Switch 1 may have played a role, but they would have seen those sales as well. Probably IO with Hitman. Didn't seem to be any buzz around it at all.
 
I mean asking for 60+ for games that have been out already and dirt cheap now is always going to be a problem. Also the system being 500 set some users back with accessories. Most initial investors bought Mario and will play their backlog on the system for a bit.
 
Launch day Switch 2 buyers will naturally be pretty strong Nintendo fans. Most of them will of course prefer to play upgraded Switch 1 games like Scarlet & Violet over a port of Yakuza 0 on Switch 2.
 
Thread already exists:

 
Thread already exists:

This is probably why Nintendo launched with almost no new first party games; to give the third parties an opportunity to make some sales. The reality is, though, people buy Nintendo systems for Nintendo games. If I want a third party game, I'll buy it on PC where it will run and look better.
 
Because people don't want to buy old games for a new platform. Cyberpunk 2077 is years old at this point. So is Street Fighter 6. Bravely Default is, albeit "remastered", a game you could play on 3DS. Third-parties came with ports of old shit to the launch. What were they expecting?
 
Well cyberpunk was out of stock in Amazon UK and Argos at the start of the week so it cant be selling too badly.

I would have got hitman but I am not supporting the game key cards or codes in a box at that price.

I did get No Man's Sky as it was a good price at launch and something a bit different, everything else just looked like publishers cashing in on the launch, were was FF7 remake or the RE remakes?
 
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These are probably the games that underperformed according to publishers:
1: Yakuza 0.
2: Street Fighter 6.
3: Split Fiction.
4: Bravely Default HD.
5: Hitman.

And the games that performed well from publishers point of view:
1: Cyberpunk.
2: No Man's Sky Switch 2 upgrade.
3: Fantasy Life Switch 2 upgrade.
4: Guardians of Azuma (Decently high on the Switch 2 eshop in Japan).
5: Deltarune.
Sf6 deserves to do well. Great port of a great game.
 
Here's one thing I want folks to consider about the Game Key Card controversy:

I've worked in indie publishing for the Switch 1, and because of those game cards, the minimum order for physical is pretty high. The cost per unit is also much, much higher than disc-based games. We've had indie releases that never recouped our costs due to these factors, and that ended up influencing the number of games we were able to release physically.

While not a perfect system, the Key Cards aim to help solve this problem. While I don't know Nintendo's minimums this time around yet, I'd assume they're the same or lower, while the cost per key card is drastically lower than a full-fat game card. That's the compromise here, is that the Key Cards will allow for more smaller-quantity releases with larger margins for publishers.

This is a great thing when the choice is between releasing a "physical" key card game versus a digital-only game. The key card allows for resale, and physical borrowing. It's similar to many PS5 games that require a download before launching.

The huge downside is that I feel that publishers will abuse Key Cards. There's no reason why a major release should ever be on a Key Card, and I'm worried that publishers will see the cost differential and decide to take the cheapest path forward, even if they are already meeting minimum quantities.

But the point I'm trying to make is that the Key Cards actually do solve an existing problem, and will enable small publishers to release their games on store shelves, and allow their games to be resold. It's great to have that option. I just hope there's something in place to prevent publishers from abusing the system.
 
No point buying 3rd party games on Switch 2 unless they are intentionally designed for Switch 2.

* Will sometimes make an exception for local multiplayer split screen 3rd party games that are 85-90% discounted on the online store
 
What did companies expect? That people will buy over priced games on game cards. If companies want me to buy their games put the whole game on the card and stop this game card nonsense.
 
They should follow the example of Cyberpunk and Rune Factory.

You know, either they put the complete game... or it will happen to them like Disgaea that doesn't sell anything in its collector edition.
 
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