Nintendo has been a bit slow when it comes to adapting to the digital realm. Even so, it has been making some progress, and now that’s starting to pay off (literally).
Industry analyst Daniel Ahmad has put together a chart that shows how Nintendo’s digital business has been progressing since 2012 up to now. This includes business generated from the eShop like game/DLC downloads, along with the recent introduction of Nintendo Switch Online last year. It turns out that Nintendo Switch Online has generated a pretty significant boost in business:
Digital growth continues to be a key driver for Nintendo.
Here is a look at digital revenue, which includes full game sales, add on content and Switch Online subscriptions.
Note. Switch Online revenue recognised from Q2 FY2018, hence the bump and growth since. pic.twitter.com/MNgOIyVqTH
— Daniel Ahmad (@ZhugeEX) October 31, 2019
Looking specifically at the bars that represent Q3 2018 to now, we can see that after the launch of Switch Online, there was a big surge. This is typical of any new product. Q4 2018 and Q1 2019 show a steady decrease, which is likely due to people not renewing monthly subscriptions (in addition to new Switch owners who decided not to purchase). Now, in Q2 2019, there’s a sudden uptick once again. This is likely due to more business being generated from game sales in addition to a rise in NSO subscriptions.
Overall, Nintendo Switch Online is proving to be quite a push for Nintendo’s digital business, hence the reason why the company decided to go with a subscription-based model like the other console platforms. Even though Switch Online still lacks a lot of features, there’s no denying the obvious business its generating.