Friday, January 13, 2017

Nintendo Switch: the price does not convince analysts. The future of the company is always in doubt – International Business Times Italia

Nintendo has now unveiled what we all wanted to know about Nintendo Switch, or almost. The official price in Italy is 329 euro, so slightly higher than the other consoles on the market, PS4 and Xbox One’s, or different tablet mid-range. Are missing some details about the hardware, in particular on the power of the processor and the graphics processor, but what we have seen so far is enough to pull the sums of the next Nintendo machine.

last year, we released several analyses on the company, which has returned a lot of attention when he announced the release of a new console, but mainly when it was launched on the market Pokémon Go, first game for mobile platforms developed by Niantic. The game, despite the numerous bugs on the application, received a warm welcome from the public, becoming in short time a big global phenomenon (by many has been referred to as the first video game to become a social phenomenon of mass, perhaps a little too exaggerated). Pokémon Go has had an important effect also on the title, Nintendo (NTDOY), which in the space of a few days is increased from 18 to 30 dollars per share. I mean, it was a period in which there has been a lot of talk about Nintendo, which in the meantime has launched on the market its first game for mobile home made: Super Mario Run.

Let us now understand, a little more than a month since the launch of the Nintendo Switch as is set in the company of Kyoto for the future, considering that the success or failure of the new console could be decisive for the battleship video game of japan.

Nintendo Switch, launch price: too expensive?

One of the things that did turn up their nose to the analysis is the introductory price, judged by many to be too high: we talk about $ 299 for the market in the u.s. and 299 euros for the european market (in Italy it is already possible to pre-order on Amazon at 329 euro). Currently you can buy a PS4 or a Xbox One s at a slightly lower price, while if we wanted to do a comparison with a tablet of mid-range, at that price, it would be possible to buy products like the Asus Zenpad 3S or iPad mini 2, which have, however, the technical characteristics of all respect. And the comparison with these machines is something that should be taken into account, since if compared to the consoles of the mold the most conservative of Sony and Microsoft, Switch is able to offer an entertainment experience that is more varied, the touch devices could be turned into a home console really with little.

Consider instead different if we put the price of the Switch to PS4 Pro and Xbox Scorpio, the output of which is scheduled for the end of the year. In this case, the cost is much lower compared to the most recent home Sony and Microsoft. The fact remains that in this moment, the Nintendo console has to be compared with what is on the shelves.

A justification of the price of the new addition to the Nintendo the cost of designing a machine that relies entirely on an integrated hardware and innovative, which aims to introduce a hybrid product that is totally new (at least in appearance). We want to make a criticism of the product itself: Nintendo Switch is really well made and the trailer of presentation of the past year has been a welcome positive from the public and of the reviewers of the various journals. The console likes and purchases will not miss, but the price could clip the wings of the product and prevent it from spreading.

Then, the price of the Nintendo Switch is right or not? Response dry we would say, "no, but not much," , and why we explain below.

Weakness in the hardware and timing not just excellent dictated by business need

Nintendo has always made expensive their products since times quite remote. The cartridges of the Snes have always cost more than those of the Mega Drive (but there was a slight technical difference between the two consoles for the Snes), not to mention the very high prices of cartuccioni of the Nintendo 64. We’re still talking about a period where the Nintendo excelled in terms of power and hardware, while in recent generations, the company was forced to shift to a strategy of withdrawal to avoid the direct clash with Microsoft and Sony. It worked with Wii, but not Wii U.

Switch follows the philosophy of Nintendo in recent years, presenting a machine that is resized with regard to the technical aspect (especially if compared to the consoles plus the new Sony and Microsoft) to bet everything on a new game experience, as he had done with the first Wii. Just this to convince users to shell out about 300 euro?

First of all, let’s say that to be a console novice, the introductory price is not so evil, but it is good to keep in mind that Nintendo Switch is right in the middle of the eighth generation (or at the beginning of what, for many, erroneously, should be the ninth generation of the console). It was three years ago, instead of the Wii U, the judgment would have been completely different, even if he had a launch price a bit higher. Here we speak of a system released to resolve a serious crisis of the company and who shall be capable of crunching numbers in a very short time. The next (REAL) generation of consoles is not too far and the public may lose interest in the latest addition to Nintendo, especially if they were to be presented machines with technical specifications in the other category.

analysts had expected and then a price policy is slightly more aggressive, which would have allowed us to create a solid user base very quickly. The sales of a car are important to attract developers and this is all the more true for a console like the Switch, which is a little more particular of the other. the it Is difficult to think that a software house is willing to develop games for Nintendo Switch and take full advantage of its features without a solid base of users: the games would be difficult to convert to other machines, as only the original system can offer the gaming experience for which you would be designed. the Considering that today’s production is triple-A is very expensive, a videogame company has an interest in producing an exclusive, high calibre, only if the car exceeds a certain number of sales (or, at least, if the sales data initial damage and future projections for the console, very good).

Nintendo maybe would have to guess something more in the launch phase, also the cost of selling its consoles at a loss, so to be included then with the revenues generated from the sales of software. Evidently, the company in japan and has no intention of sacrificing the other margins.

What we say technical analysis

Nintendo, reaction after the conference Switch Reaction on the daily chart of the title Nintendo after the conference of January 13 in which they are rilavati price and other features of the Nintendo Switch IBTimes Italia / Technician

the reaction of The title Nintendo is listed on the Tokyo stock exchange (pack 7974.XTKS) is negative after the conference. Analysts probably have not appreciated the introductory price, as explained above. At this moment, the title is testing the trendline in the short to medium term and in the event of a rupture is very likely the throwback on 17.400 points: in this case, attendiamoci then a continuation of the decline.

Nintendo, the weekly chart On the weekly chart you can see that the title is still set to rise. Can throwback on the highs of 2010 and subsequent resumption of the bullish trend. IBTimes Italia / XTB

If we look at the timeframe the weekly, however, we can see that the title still remains well set up for later resume the march uptrend and go to re-test the highs of 2010. To overcome this resistance, the outlook for the title, Nintendo would really be very interesting.

Much, however, will depend on the reception that the public will reserve the Nintendo Switch, to the plans that Nintendo has for the future and how the company will position itself on the mobile market.

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