In the latest investors Q&A session, Nintendo President Shuntaro Furukawa was asked about the demographics and attach rate of Nintendo Switch Online, the company’s first online paid subscription service.
Although Furukawa did not disclose the number of subscribers, he did say that Nintendo Switch Online “had a good launch”. The President also stressed that Nintendo needs to further enhance the content of the service in order to increase the number of subscribers.
Interestingly, Furukawa said it was crucial for Nintendo Switch Online to go beyond being just a digital service. One of the ways they are doing that now is by selling exclusive NES and Famicom controllers to Nintendo Switch Online subscribers. Perhaps we’ll see more physical items locked behind Nintendo Switch Online in the future.
We think Nintendo Switch Online had a good launch, but the service has only just begun, so we have no plans to disclose any current subscriber ratios or number of subscribers at this time. Our objective for launching the service is to bring “More Games. More Features. More Fun.” to Nintendo Switch. Our focus at this point is on boosting the appeal of the service. We need to further enhance the content of the service for the subscriber base to reach a certain size, so that is what we’re working on, with the understanding that the time it will take to do so will be measured in years.
As for the kind of service this will develop into in the future, Nintendo Switch Online is essentially a digital service, but we are also offering controllers specifically for use with Nintendo Entertainment System – Nintendo Switch Online exclusively to subscribers of the service. We see the need to develop the service beyond being merely digital, in ways play to our strengths as a company that operates an integrated hardware and software business.
What do you think?