Key Takeaways
1. Concerns about Game Key Cards being perceived as “unappealing” and affecting third-party game porting due to potential slow sales.
2. Nintendo’s commitment to collaborating with third-party publishers to support the platform, though specific sales figures were not provided.
3. Game Key Cards require players to download the entire game, serving only as a physical license rather than providing storage.
4. Game Key Cards made up a significant portion of first-party titles for the Switch 2, with notable exceptions like Cyberpunk 2077, which launched on a traditional cartridge.
5. Factors contributing to declining third-party sales include increased storage options and the shift away from full physical releases, raising concerns for collectors and those with limited internet access.
Nintendo recently held its 85th Annual General Meeting for Shareholders, where investors asked questions on various topics, including the perceived lack of interest in Game Key Cards within the gaming community.
Concerns About Game Key Cards
A shareholder raised concerns regarding online sentiments that Game Key Cards are considered “unappealing” and could hinder third-party developers from porting their games if sales are slow. In response, Furukawa stated that this new format was created to accommodate the growing sizes of games for handheld devices.
The Switch is compatible with cartridges that offer up to 64GB of storage, which many see as a costly choice for publishers.
Commitment to Third-Party Support
Furukawa emphasized Nintendo’s dedication to “collaborating with our third-party publishers to secure their backing for our platform.” However, he did not provide specific sales figures or detailed information. This is in line with previous remarks from Doug Bowser, President of Nintendo of America, who noted that Game Key Cards enable publishers to release larger, more immersive games for the Switch 2.
Still, there are ongoing rumors that publishers have the option between the more expensive 64GB cartridge or the Game Key Card, without any middle ground. Nintendo has neither confirmed nor denied these rumors.
Game Key Cards Functionality
Game Key Cards necessitate that players download the entire game. These cards act solely as a physical license, lacking any actual storage for the title itself. This essentially makes them similar to a digital license that requires online validation before players can access the game.
Reports from Game Business and Circana indicate that Game Key Cards comprised a significant portion of the first-party titles for the Switch 2. An exception noted was CD Projekt RED’s Cyberpunk 2077, which was released as a complete title on the proprietary game card for the Switch 2. Cyberpunk 2077 was the only third-party launch title that achieved notable sales, coming in just behind Nintendo’s own first-party games, showing that traditional physical cartridges still enjoy considerable popularity.
Factors Affecting Third-Party Sales
Analyst Daniel Ahmed from Niko Partners pointed out that several reasons played a role in the decline of third-party sales at launch. The Switch 2’s increase in storage from 32GB to 256GB, along with support for microSD cards, makes digital downloads more feasible. However, the move away from full physical releases continues to be a concern for collectors and individuals with limited or unreliable internet access.
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