LegendofLex
Member
So, record profits while people continue to claim its in decline?
The thing about disruptive technologies is that they claim less profitable customer segments first, the ones who don't really need everything the incumbents are offering (graphics, AAA games, prestige, etc.) and who benefit most from the different kinds of values the disruptive technology is offering (simplicity, accessibility, fun).
That leaves the incumbents with fewer customers, but the ones that are most profitable. Over time, if the disruptive innovation is developed properly, the new technology gets better and better and claims more and more customers, leaving even fewer (but still the most profitable) customers for the incumbent.
To put it in context, people who subscribe to PS Plus every year and buy every AAA game on PS4 probably aren't likely to do all their gaming on Switch. But people who don't subscribe to PS Plus are probably the people most likely to buy a Switch. It's the ones who buy the most PS4 games that will likely be the hardest to convert away from PS4 - and they're the ones putting the most money in Sony's pocket.
There's no guarantee that this will happen for Switch (just like it didn't happen long-term with Wii), but Nintendo's definitely aiming at a future where the majority of dedicated device gamers play on a mobile game console.