Nintendo is expected to surpass Microsoft in 2018

After a year filled with success stories, it’s no surprise that Nintendo is building a foothold on the Switch. What’s more surprising are the numbers that actually recount this success. Thanks to strong sales from the SNES Classic, 3DS and most recently the Switch, Nintendo will probably overtake Microsoft in market share in 2018.

The Nintendo Switch made a huge splash in 2017. While many were skeptical at first about Nintendo’s ‘half-lean half-fat’ system, the Switch created a huge fever among fans. The Switch console was difficult to get at first in early 2017. Despite the rarity, Nintendo’s newest console still broke several sales records.

By the end of January, Nintendo had sold nearly 15 million units and if the prediction is correct, this number will continue to increase. According to an analyst from IHS Markit, Nintendo’s hardware and software revenue is forecast to exceed $11 billion in 2018. That’s far more than the $8 billion Nintendo received in 2017. This is also double Nintendo’s revenue in 2016.

Microsoft also had a pretty good year in 2017, with about $10 billion in revenue in Xbox-related software and hardware. Xbox One X is also out and Xbox One is entering the later part of its life, IHS Markit shows that Microsoft’s console market share has dropped a bit since 2017. If their predictions are correct, Microsoft will hit around $9 billion dollars in revenue in their game products this year. With the longevity of the Xbox One on the rise and the Switch booming, Nintendo is likely to take the No. 2 spot from Microsoft this year.

Right now, Nintendo’s Switch is in great shape. The system has released a lot of great games, and with new games like Yoshi, Pokemon and Metroid also coming to shelves, we can hardly see the Switch’s popularity decline. This must be good news for Nintendo, as it intends to support this device beyond the typical lifespan of other systems. However, Nintendo is unlikely to continue this momentum beyond 2018. But we cannot underestimate Nintendo. They always have big surprises and will probably recreate the success that the Wii had in the mid-2000s.

Source: Gamesindustry.biz