Zelda Tears of the Kingdom & Super Mario Bros Movie Catapult Nintendo Results to Record Highs in 2024 Q1

Here we dough!

Turns out, the Switch is still paying off during its twilight years. Quite literally, for Nintendo.

It sure doesn’t hurt to have a film based on one of the world’s most recognizable mascots either.

Yesterday in Japan, Nintendo reported fiscal year 2024 first quarter financial results. It proved to be a massive three months for the gaming giant, achieving all-time Q1 highs for both revenue and operating profit.

Underlying this record quarter was a historic start for The Legend of Zelda: Tears of the Kingdom and the blockbuster hit that is The Super Mario Bros. Movie. Nintendo shows, yet again, its brands are powerful and management knows how to deploy them, producing some of the highest quality content in games and beyond.

This combination led to Switch hardware output growing since last June. In impressive fashion, the system is steadily approaching 130 million units globally as its its seventh birthday approaches. After moving 3.91 million Switch in Q1, up 14%, lifetime shipments are now 129.53 million.

“In addition to the increase year-on-year in unit sales of both Nintendo Switch hardware and software, another main factor in this growth in net sales was the larger percentage of hardware sales accounted for by Nintendo Switch OLED Model, which has a higher unit price,” management wrote in the slide deck. “The depreciation of the yen also had an effect.”

Nintendo couldn’t have secured a best-ever Q1 without, of course, Tears of the Kingdom. It’s the premier open world adventure of 2023, an easy Game of the Year contender. Plus, unit sales are ascending faster than Link himself. After shipping 10 million copies during its first three days, a Nintendo platform record mind you, it finished the quarter with a staggering 18.51 million.

That’s easily the best launch quarter ever for a Zelda game, and second fastest-selling opening for a Switch title. In fact, the fastest is really two titles: Pokémon Scarlet & Pokémon Violet at a combined 20.61 million.

The real added boost mode, and a genius move by management, was The Super Mario Bros. Movie hitting at the ideal time as theatergoers are back in their groove and it targets such a wide audience. It’s already the second highest-grossing animated film of all time. It launched in April! As a result, Nintendo’s Intellectual Property (IP)-related income segment tripled in sales. Talk about a perfect supplement late in the cycle of Nintendo’s top-selling home console of all time.

Before dipping into the numbers, a quick caveat on the mentioned yen exchange rate: It’s still historically weak. This has an outsized impact on conversions for Japanese companies. Now, let’s see what’s behind Nintendo’s record performance.

I’ve displayed the most important slides from Nintendo’s latest report above.

Overall company net sales jumped 50% in the quarter, to $3.36 billion. Operating income skyrocketed 82% to upwards of $1.35 billion. The strength of Zelda and Mario were in full force.

For perspective, as you’ll see in the chart gallery below, the last time Nintendo’s revenue was anywhere near this high was back in the Wii days. The last time it generated close to this much profit was Fiscal 2021 due to the craze around Animal Crossing: New Horizons.

One notable mention on the profit side was the higher cost of OLED model limits margins, as did a higher portion of retail sales as opposed to downloads, since Tears of the Kingdom is a popular buy in physical form.

“Although the proportion of hardware sales declined and the proportion of first-party software sales increased, our gross profit margin remained at the same level year-on-year,” management wrote. “This was due in part to the lower proportion of digital sales and Nintendo Switch ‒ OLED Model, which has a lower profit margin than the other models in the Nintendo Switch family of systems, accounting for a greater percentage of hardware sales.”

In terms of product types, the company said 41% of sales were from hardware. Compare that to 44% in the same quarter last year, and 46% for last fiscal. This tells me that, while Tears of the Kingdom did push some new systems, most buyers already owned one or more Switches. Digital sales were less than half of Nintendo’s total revenue, at 47%, versus last Q1 at 53%. Digital split was much closer to the full FY 2023 number of 48%.

There’s an intriguing dynamic happening for regional slices. From an overall standpoint, Americas was nearly the same at 44% vs last year’s 45%. The main difference was a lower portion from Europe, which was down to 23% from 26%. The Rest of World segment accounts for the change, moving from 10% to 13%. Then when looking at strictly hardware unit shipments, it’s growth in Japan leading the charge. Unit sales in the Americas and Europe declined 7% and 15% respectively, while Japan rose a whopping 67%.

Even so, Nintendo did point out that console sell-thru was up in all its regions, even if shipments weren’t. Most importantly, total revenue from all sources did in fact move up across all locales. The Americas saw 40% growth, Europe increased 32% while Japan increased 49%.

Another growth vector, albeit to less an extent because it’s still a small portion of business, was the firm’s category of mobile and IP related income on the strength of its animated film division royalties. Dollar sales jumped 190% here, to $232 million. That’s 7% of quarterly net sales, compared to 4% a year back.

Zooming out to annualized numbers really drives home how substantial this latest three month period. Nintendo’s current trailing annual sales accounting for this record Q1 are $13.46 billion. As you see in the chart, based on current exchange rates applied historically, that’s the best annual sales for a first quarter in its history. And nearly the highest ever, behind only FY 2009 Q3. On the profit side, it’s almost there as well. The best trailing 12-month revenue for a Q1 since peaking back in FY 2009 Q1.

Essentially, the company is currently on track for the best annual financial results of the Switch era.

It’s also time to update my peer comparison within the industry, which I started annual in my latest Xbox results piece here. Sony’s latest annualized revenue was almost $27 billion, followed by Tencent’s 26 billion. Microsoft reported $15.47 billion from gaming, then there’s Nintendo here at $13.46 billion. I’ll reiterate what I’ve said before: Sales aren’t everything. Nintendo’s profitability outpaces Sony’s games division for now, at least as of last reported, mainly due to high costs associated with making the PlayStation 5 and related big budget software exclusives.

Total hardware shipments for Switch started the fiscal year at 3.91 million, up an impressive 14% from the 3.43 million last year.

It’s the third highest Q1 shipment number for the hybrid console, behind fiscal 2021’s 5.67 million and 4.45 million in 2022. Nintendo clearly intended there to be enough stock to satisfy that Tears of the Kingdom demand. Plus, it’s clear the market isn’t fully saturated.

From an individual model standpoint, it’s Switch OLED that’s growing. Sales catapulted 86% to 2.83 million. It made up 72% of the total. The other two, Switch base and Switch Lite, declined 51% and 27% respectively to comprise the remaining allotment. This is why management mentioned margins before, as the OLED is the main seller now as the older models phase out.

It’s an effective final push for Switch, which will be seven years old in March.

Switch’s lifetime of 129.53 million, while certainly near another major milestone, still has a ways to go to reach the highs of best sellers Nintendo DS and PlayStation 2. Thinking back to 2017, when I was upbeat about Switch yet never thought it would reach even Wii numbers, it’s pretty wild the hybrid console is even in the conversation for top hardware ever.

Beyond shipment numbers, the report highlighted some sell-through to consumers information. Just like shipments, Switch sold-thru more units to people than the comparable quarter last year. Unlike shipments, all regions experienced growth in sell-thru. Tears of the Kingdom having an OLED special edition bolstered this growth at the consumer level, leading to quarterly sell-thru that beat last year and rivaled the one prior.

As for software, Nintendo shipped 52.21 million units in the latest three months. Not only is that up 26% compared to last year’s 41.41 million, but it’s also the single largest Q1 in Switch history. Even above 50.4 million in Fiscal 2021 after Animal Crossing: New Horizons.

Lifetime game sales for Switch passed a billion back in March, an enormous feat. Now it’s at 1.088 billion.

Since it’s early in the fiscal and late in the console cycle, Nintendo had only two million-selling titles. One of them being Tears of the Kingdom, the other being the never-ending Mario Kart 8 Deluxe.

Based on the 18.51 million shipped for Tears of the Kingdom, it made up 35% of the overall Switch record-breaking unit shipment figure for period ending June. Think about that. More than 1 in 3 games moved for a console with so many epic sellers and this all-time audience base was the new Zelda!

With this frankly absurd start, it’s already 9th best-selling Switch title ever, knocking Ring Fit Adventure out of the Top 10. With less than a quarter on market. This parallels regional data, where it’s 2023’s 2nd top-selling game to date in the U.S, behind only Hogwarts Legacy, according to Circana’s latest monthly report. Oh, and that doesn’t even include digital.

Zelda will compete for best-selling title with multi-platform titles like the yet unannounced Call of Duty 2023, Hogwarts Legacy and Diablo IV plus PlayStation exclusive Marvel’s Spider-Man 2. I believe it could, even on a single platform, be the biggest premium title of 2023 if Nintendo shared its downloaded portion.

Continuing the record Q1 theme, Tears of the Kingdom sold-thru over 15.7 million in its first 8 weeks, immediately making up half of the year’s Nintendo-published software unit sales for 2023. That pushed sell-thru of 1st party Nintendo-published titles to an all-time best since Switch’s start. By a wide above the prior record holder, FY 2021, based on the graph provided.

Separately, one of the rare down notes of this report is the fact that the million sellers list only had two titles. This means the likes of Advance Wars 1+2 Re-Boot Camp, from April, and June’s Everybody 1-2 Switch both did not achieve a million sold. Not that I was upbeat on either of them, especially the latter which is probably the least I’ve seen the Switch audience excited in all its years.

The company also provided its usual updates to lifetime figures for existing titles. Mario Kart 8 Deluxe had yet another quarter over a million, bumped up by all those new Switch owners picking up Zelda, moving 1.67 million. It’s achieved the 55 million mark lifetime, settling at 55.46 million. The Legend of Zelda: Breath of the Wild benefited from the knock-on effect of a new series game, passing the 30 million mark to 30.65 million. And, while not part of this report, October 2021’s best-selling Metroid game Metroid Dread hit a new milestone: 3 million according to its developer MercurySteam.

While we see plenty of date on copies sold, there’s limited stats from the firm around player engagement. Its made-up term of Annual Playing Users, or the number of Nintendo Accounts that used the Switch in the last year, jumped up to 116 million from March’s 105 million. There’s no new data on Switch Online memberships, which totaled 36 million in September of last year.

In a new portion of the report, there’s details into the epic box office earnings of The Super Mario Bros. Movie. Since its theatrical debut in April, the film has attracted over 168 million viewers. Current global box office revenue of nearly $1.35 billion makes it the highest-grossing video game movie ever, and second most successful animated flick only to Frozen II’s $1.53 billion since 2019. Executives noted that its popularity was global, plus it drove sales of various Mario titles on Switch alongside the release.

This is something I’ve said a lot during Nintendo’s historic Switch era: how it’s hard to oversell how incredible of a quarter it was, and how deftly management continues to executive on its strategy, notably its focus on quality experiences and leveraging its legendary IP in smart ways. The fact that a movie led to Nintendo’s best Q1 to date, alongside its re-imagined Zelda approach, shows that the company continues to adapt while remaining true to its core identity.

“By expanding Nintendo IP in areas outside the dedicated video game platform we create new opportunities for consumers to encounter Nintendo IP, and this invigorates our overall business,” management wrote. “Based on the various effects that we have confirmed through the release of this movie, we will continue our efforts towards visual content-related initiatives.”

As expected early in the fiscal year, Nintendo maintained its financial and unit sales guidance for the 12 months ending March 2024. Management anticipates 10% lower annual net sales, near $10.56 billion, with operating profit in that same period declining 11% to $3.28 billion. I think there’s the potential for an upward revision soon, and I expect the company to achieve these. At least, right now.

On the hardware front, the team there anticipates shipping 15 million Switch units for the year. After the 3.9 million of Q1, that leaves only 11.1 million for the remaining three quarters. I expect a slight upward revision from the company in Q2 or Q3, to at least 16 or 16.5 million, which is right at my personal estimate of 16.5 million to 17 million.

Beyond that, it’s about time to be looking ahead to what’s next for Nintendo’s hardware business. It’s a major challenge for management, akin to moving past the Wii and we know how well that went with the disastrous Wii U. The company is in uncharted waters after Switch’s meteoric, historic success that rivals only the Nintendo DS in sales.

Just this past week, the rumor mill began swirling in earnest around a Switch successor, which I will continue to call the Super Switch until told otherwise. Video Games Chronicle and Eurogamer both claim they have sources indicating Nintendo’s next device will have a portable mode, a cartridge slot, could have an LCD screen (as opposed to OLED) in consideration of cost. No word on backward compatibility, which is a key feature question for the almost 130 million owners. Most importantly for yours truly, it’s likely targeting a 2nd half of Calendar 2024 launch. Studios making games for the device apparently have development kits as we speak.

When writing and chatting on social media, I’ve had Early 2025 as my estimate, lining up nicely with the anniversary of Switch’s March 2017 start. While I’ll keep that for the time being, it sounds like I might have to adjust that by a quarter, to Late 2024.

If that’s the case, we won’t have to wait long for more information!

As for software in the future, let’s take a glance at Nintendo’s upcoming lineup. Pikmin 4 hit stores in July, to a breakout start in Japan that points to a potential record launch for the franchise. That’s really all for its published exclusives in the quarter ending September.

October is when the product suite really ramps up, starting with Detective Pikachu Returns. Then it’s the standout title of Super Mario Bros. Wonder, scheduled for late October. Throw in WarioWare: Move It!, probably a premium Pokémon as usual, alongside a remake of Super Mario RPG in November, and these will provide ample momentum leading into the holiday months, and the latter parts of its financial year.

Both Luigi’s Mansion: Dark Moon and a new Princess Peach, yet untitled, have 2024 as the release timing in Nintendo’s material. Could they hit before the Super Switch reveal? Might they come out before fiscal year end in March 2024? Maybe. Then there’s the evasive Metroid Prime 4, still listed as TBA without any sort of information. I’m doubling down in saying that Metroid Prime 4 will be a cross gen title, launching on both current and Super Switch, alongside a premier 3D open world Mario title. Like Breath of the Wild hitting both Wii U and Switch, except with less commercial upside.

Well then, in the meantime until these new games release and Nintendo shares what it’s been cooking up for its console biz, check my earnings calendar and other recent articles for more coverage of the industry.

Thanks for reading my latest recap! It was a substantial one. Be safe, everyone.

Note: Comparisons are year-over-year unless otherwise noted. Exchange rate is based on reported average conversion: US $1 to ¥137.34

Sources: Box Office Mojo, Company Investor Relations Websites, MercurySteam.

-Dom

The Legend of Zelda: Tears of the Kingdom & Nintendo Ascend to Top of May 2023 Circana U.S. Games Sales Report

As we near the end of 2023’s first half, I’m back with another monthly sales recap!

This time, industry tracking firm Circana shared May consumer spending results across the United States games industry. As I expected when I wrote a preview last month, and what was the easiest prediction I’ve maybe ever made, Nintendo dominated the conversation and charts.

Which it often does during flagship title launches, especially in the current Switch era. This time it was the month’s best-selling The Legend of Zelda: Tears of the Kingdom hitting market in mid-May, proving to be perhaps the most popular game during a year stacked with great releases.

In the scheme of things, last month was mostly quiet in terms of quantity of premium titles. Yet the one big launch was just that: massive. Between software sales and corresponding hardware units, Tears of the Kingdom boosted total spending to double-digit growth for the first time in 2023.

All three categories of Video Game Content, Hardware and Accessories moved up, the latter two also in the double-digit range. Hardware dollar sales alone jumped over 55%.

Content saw positive contributions from full game premium software and add-on content, even with Tears of the Kingdom being the only new game among the Top 20 best sellers, however other key areas like mobile and PC suffered declines.

Hardware reflected this mainline Zelda push in that Nintendo Switch returned to win by dollars and units. It’s the first time all year the aging Switch has led on revenue. In fact, Nintendo’s hybrid console generated the most ever May month dollar sales since its launch in 2017.

“Improved PlayStation supply has been one of the most talked about stories of the market in 2023, said Circana’s Mat Piscatella on Twitter. “Every month leading into May it’s been all about PlayStation 5. This month Zelda is the big story.”

Check below for a deeper look at the data set, then a recap and predictions leading into June.

United States Games Industry Sales (April 30th – May 27th, 2023)

Overall video game sales reached $4.12 billion during May, up a strong 12% since last year. This means that for the first time since February, year-to-date spend has turned positive. It’s now at $21.83 billion, up from $21.77 billion thru the same five month period in 2022.

This positive momentum has picked up steam with better console availability and mainstream AAA releases, even as mobile continues to show weakness and subscription growth keeps slowing. People are hitting retail to buy the latest family of PlayStation devices or supplement their Switch ownership with an additional unit for family members to experience Tears of the Kingdom, the biggest global Nintendo launch on any of its storied platforms.

Content as a category, which includes software and related sales, rose 9% last month to $3.62 billion. Thus making up 89% of May’s spend, compared to 90% last year. One area of strength was retail software sales, in particular. For 2023 so far, it’s trending towards growth although not quite there. Currently, annual Content spend is down 2% to $18.73 billion. It was over $19 billion through May in 2022.

As I’ve written about extensively in recent reports, mobile spending keeps trending down. While Circana didn’t share a year-over-year comparison, Sensor Tower said in the announcement that May mobile spending was 2% lower than April. The month’s top earning mobile titles were Candy Crush Saga, Roblox, Royal Match, Gardenscapes and Homescapes.

Tears of the Kingdom comfortably led the premium software list and is immediately 2023’s second top-seller behind only Hogwarts Legacy, which has three months of sales under its belt. All of this accomplished without digital, since Nintendo doesn’t include that portion. That’s right: Using solely retail box sales, which are an increasingly smaller slice of the industry as it shifts towards downloads, Tears of the Kingdom was May’s winner and presently the year’s runner-up.

“New physical video game software spending reached its highest May total since May 2014.” said Piscatella. Not that physical really dictates where the market goes anymore. (Except for Nintendo in this context, I suppose.)

Below the aforementioned Warner Bros product Hogwarts Legacy, which ranked in second, April’s winner Star Wars Jedi: Survivor from Electronic Arts moved down to third place. Rounding out the Top 5 were a pair of sequels in Dead Island 2 and Call of Duty: Modern Warfare 2 from Embracer Group and Activision Blizzard, respectively.

Two of the month’s biggest movers were Ubisoft’s Far Cry 6 jumping back into the Top 10 plus The Legend of Zelda: Breath of the Wild returning to chart in 13th, clearly benefiting from Zelda fever.

In a fun twist, at least for us data nerds, Circana provided additional tidbits around player engagement. The team shared the most played games of May, as measured by percentage of the polled panel playing at least one of these titles in the tracked period. On PlayStation platforms, it was Fortnite, Call of Duty: Modern Warfare 2, Grand Theft Auto V, NBA 2K23 and Apex Legends. For Xbox, it’s a similar list: Fortnite, Call of Duty: Modern Warfare 2, Grand Theft Auto V, Minecraft and Roblox.

Swapping back to premium, the 2023 annual ranks so far stayed pretty stagnant except for the introduction of Tears of the Kingdom into that second slot. Resident Evil 4 Remake now rounds out the Top 5, while Dead Space Remake fell a couple spots to #9. Elden Ring is no longer among the Top 10, ever slightly below in 11th, while Forspoken is hanging on for dear life in the Top 20 at 19th.

Here’s a full look at the overall software charts, which are sorted by dollar sales.

Top-Selling Games of May 2023, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. The Legend of Zelda: Tears of the Kingdom*
  2. Hogwarts Legacy
  3. Star Wars Jedi: Survivor
  4. Dead Island 2
  5. Call of Duty: Modern Warfare 2
  6. MLB: The Show 23^
  7. FIFA 23
  8. Mario Kart 8*
  9. Resident Evil 4 Remake
  10. Far Cry 6
  11. Elden Ring
  12. Minecraft
  13. The Legend of Zelda: Breath of the Wild*
  14. Super Smash Bros. Ultimate*
  15. Madden NFL 23
  16. God of War: Ragnarök
  17. New Super Mario Bros. U Deluxe*
  18. Pokémon Scarlet & Violet*
  19. LEGO Star Wars: The Skywalker Saga
  20. Super Mario 3D World + Bowser’s Fury*

Top-Selling Games of 2023 So Far, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Hogwarts Legacy
  2. The Legend of Zelda: Tears of the Kingdom*
  3. Call of Duty: Modern Warfare 2
  4. Star Wars Jedi: Survivor
  5. Resident Evil 4 Remake
  6. MLB: The Show 23^
  7. Dead Island 2
  8. FIFA 23
  9. Dead Space Remake
  10. Madden NFL 23
  11. Elden Ring
  12. The Last of Us Part 1
  13. Mario Kart 8*
  14. God of War: Ragnarök
  15. Minecraft
  16. Pokémon Scarlet & Violet*
  17. Fire Emblem Engage*
  18. Sonic Frontiers
  19. Forspoken
  20. NBA 2K23*

As the Hardware segment has done all year, it again exhibited resilience in May, completely rebounding from earlier inventory issues. Spending here skyrocketed 56% to $338 million. This leads to 2023 sales of $2.16 billion right now, or 23% higher than the $1.76 billion thru May last year.

It’s Nintendo and Sony leading the charge yet again, establishing that anyone can go out and purchase their respective consoles as hearts desire. Both companies are seeing hardware sales growth domestically, while Microsoft’s Xbox family isn’t faring nearly as well.

Nintendo Switch boosted to double digit growth since last May, securing the month’s top spot by revenue and units. I mentioned earlier this was its best May ever for dollars. In addition, this was the second best May ever for unit sales, behind only May 2020 which was near the peak of the Animal Crossing: New Horizons craze and quarantine-fueled interest in gaming at home.

Sony secured May’s second best-selling console in PlayStation 5, generating even more percentage gains than Switch. In the “triple digits” according to Circana, meaning at least double the dollar sales of May 2022. PlayStation 5 is still this year’s best-selling hardware, by both dollars and units sold, proving that Sony has been consistent in attracting players to its current generation.

The glaring omission from any performance or growth comments was Xbox Series X|S, thus its sales were lower than last May. It’s again in third place, as its top brass has repeatedly reiterated during the ongoing Microsoft vs The Federal Trade Commission (FTC) trial. In fact, the company’s gaming lead Phil Spencer outright declared that Xbox has “lost the console war.” Even if that war is a “social construct,” according to him, the referenced 16% global market share for Xbox is certainly lacking.

This year’s U.S. sales reports reinforce how Microsoft is consistently behind its peers. Never mind how its business does $16 billion a year in revenue, partially due to a shift of focus away from traditional consoles and towards services like Xbox Game Pass and cloud. But I digress.

Anyways, back to May to wrap up the last of its three major categories in Accessories.

Last month, spending across game pads, peripherals and the like moved up 14% to $159 million. It’s steadily moving upwards for 2023, now at $937 million or 3% higher than the corresponding five month period last year.

In terms of individual accessories, the premium PlayStation 5 DualSense Edge Wireless Controller in all black generated the most dollar sales during May. It’s also maintained its annual lead so far.

Echoing earlier comments around Nintendo and its contributions, The Legend of Zelda: Tears of the Kingdom Series 1 Amiibo Character Pack was May’s top-selling accessory when measured by units.

This report was one of the most straightforward in recent memory. When Nintendo puts out the follow-up to one of the best games ever made, the market tends to listen. And, importantly, spend. Zelda and Switch were the conversation in May, especially since mobile is performing so unevenly and there’s not many brand new premium titles competing for the charts.

Piscatella noted on Twitter that he sees “software getting more top heavy” which “could be tough sledding for games not at the top of the charts.” This is especially true in a modernizing industry that values evergreen, big budget titles.

There’s also subscriptions, where Circana said growth is regulating and normalizing during a user retention phase, as opposed to a user attraction period. Sounds like Xbox Game Pass and the rebranded PlayStation Plus have their base, and aren’t adding as many payers as they were in recent years.

Going forward, June will mark the end of 2023’s first half already!

At present, domestic games spending is trending to be flat for the first six months. Unless June provides a notable boost, which I don’t think it will because I see low single-digit growth, the first half of 2023 might be up a percent or two.

Within premium Content, I expect Tears of the Kingdom to have another great month as a carry-on from May. It’s the type of game that will appear in these charts all year. Just like Hogwarts Legacy has done, which will be among the best-sellers.

For new releases that can compete, I expect Diablo IV from Blizzard to be the best-selling title of June with a potential record first month for the franchise. It’s had a Hell of a start globally, the best in Blizzard’s history, and is a multi-platform juggernaut. It should easily make 2023’s Top 5 list instantly, and could compete to be the year’s top-selling premium title.

Then there’s a pair of Japanese games that will be among June’s top sellers in Capcom’s Street Fighter 6 and Square Enix’s Final Fantasy XVI.

Street Fighter 6 crossed the 1 million copies sold mark within three days of launch, and I believe will fight to a Top 5 position on the overall ranks. And even with Final Fantasy XVI launching on a single platform in PlayStation 5, I expect a similar positioning. Publisher Square Enix announced today that shipped over 3 million units globally during its initial week on sale.

Elsewhere, the F1 series is usually a quiet seller, even if not the most popular. I say F1 23 will be among the Top 15. Then, talk about quiet, there’s Nintendo’s Everybody 1-2 Switch, the successor to Switch launch game 1-2 Switch that debuts a couple days before the June tracking period ends. While I’m usually upbeat on Switch games, that’s not the case here. With it being a lower-priced title and Nintendo not sharing digital, I expect it to miss the Top 20.

For the Hardware segment, it’s going to be a classic battle between Sony and Nintendo. I’m guessing PlayStation 5 will top on revenue while Switch will win on units, the former bolstered by a major third-party exclusive in Final Fantasy XVI and the latter affected by late Tears of the Kingdom purchases.

We’ve come to the end of May’s recap, and June’s predictions. I highly recommend Piscatella’s thread for further details and insights. Check back later for more sales and industry coverage right here.

Be safe everyone. Thanks for reading!

Note: Comparisons are year-over-year unless otherwise noted.

*Digital Sales Not Included

^Xbox & Nintendo Switch Digital Sales Not Included

Sources: Circana, IGN, Nintendo, Square Enix.

-Dom

2017 Year-in-Review: Dom’s Top 10 Video Games of the Year

Here we go!

 

Since it’s been one of the best years for video games this generation, it was almost impossible to (1) rank my favorite games and (2) make sure that I include as many as possible that deserve recognition during such a competitive time. It was difficult, but I’ve managed to narrow it down to a ranked list of my top ten favorite titles then a five honorable mentions for your reading pleasure (or disdain, if you happen to disagree.)

 

One disclaimer of course is that I will be sharing screenshots and exposition that may contain spoilers. If you haven’t finished your most-anticipated games of 2017 then.. wait, why haven’t you finished them if they were your most-anticipated? Seriously though, fair warning that there may be spoilers starting.. Now.

 

1. Super Mario Odyssey (Nintendo)

Platforms: Nintendo Switch.

Estimated Sales: At least 5 million units, based on around half of Switch owners purchasing it (there are 10 million consoles sold to date).

 

During a year in which Nintendo rebounded to achieve an array of accomplishments, its most relevant to me is fully rejuvenating the Mario franchise with this magical, exploratory open world 3D platformer. Super Mario Odyssey is a sprawling adventure of our favorite Italian plumber along with his new sidekick Cappy, and is a pure joy to play while “Cap-turing” enemies to take over their abilities and grabbing each one of its hundreds of collectibles. I’m left with the closest feeling possible to how I felt playing Super Mario Bros on the Nintendo Entertainment System during Christmas Day when I was little more than a toddler. Especially during a sequence in the city-themed Metro Kingdom that hearkens back to a timeless arcade title from the Japanese company.

 

It’s a game successfully split in two parts: The first tailored to a more casual audience wanting to experience the story of Mario attempting to save Peach from Bowser’s slimy grasp, this time under the guise of the villain kidnapping the Princess and planning their wedding on the Moon. Though by the end, I’d argue this is a distinctly clever take on the “traditional” Mario story. Princess Peach ends up dismissing the advances of both Mario and Bowser, in a wink-and-nod moment from the designers. Instead, she takes a trip of her own alongside Cappy’s sister Tiara, smartly bucking the tired trope of the damsel-in-distress we’ve seen her play since the 80s.

 

Then, the 2nd part is a surprising post-credits sequence targeting the most die-hard of completionists with brand new kingdoms plus a ton of puzzles and collectibles in existing areas. I’m treated to playing as Yoshi in the iconic Mushroom Kingdom, finding a theater in the Metro Kingdom with a playable version of the aforementioned Super Mario Bros and ended up conquering one of the most difficult levels in the franchise’s history. This final endeavor is a true delight, as it incorporates both platforming elements and the “Cap-turing” mechanic in fun, impressive ways.

 

If a video game that both tickles my nostalgia bone and stands as the pinnacle of its genre with new gameplay hooks, an unrivaled attention to detail and extreme polish doesn’t top my list, then I don’t know what does. It’s hard for me to find a glaring flaw with, except maybe that I wish Nintendo would hurry up and announce new future content (maybe a kingdom or two..) so I never have to leave the world of Super Mario Odyssey.

 

 

2. The Legend of Zelda: Breath of the Wild (Nintendo)

Platforms: Nintendo Switch, Wii U.

Estimated Sales: Similar to above, more than 5 million units. Likely even more than Odyssey because of Breath of the Wild releasing earlier.

 

Nintendo’s rebound began in March with the release of its Switch console and *probably* my 2nd favorite mainline Zelda game ever behind Ocarina of Time. Breath of the Wild is an action-adventure starring familiar characters like the timeless hero Link and Princess Zelda is the epitome of the “emergent storytelling” buzzword, a label often bestowed but rarely achieved. It’s set in the fantastical world of Hyrule, again haunted by the dark force Ganon, and the wonderful part is the world is wide open after a brief tutorial area for the player to run, explore and (most importantly) climb everywhere they can see. It features beloved areas like Goron City, Rito Village, The Lost Woods and countless others complete with their respective cultures and characters.

 

Now it doesn’t have the most engaging story, and lacks traditional “dungeons” that certain fans will miss. But I believe it MORE than makes up for this with intricate gameplay systems and an array of puzzles (i.e. shrines, mazes and collectibles) that allow for personal, powerful moments. If I thought I could do something, I could. Like of course a metal object conducted electricity. Absolutely it’s hard to climb when it’s raining. See that snowy mountain? Better bundle up before scaling it! Plus I’d often be rewarded with a useful in-game item, and ultimately a feeling of child-like awe inspired by so few games these days.

 

Admittedly, I was skeptical of Breath of the Wild prior to release. I was hesitant on weapon degradation, limited stamina and the necessity to prepare for the weather or elements. But I ended up actually really enjoying these systems within the broader world because each forced me to try new things, improvise under duress and consider a variety of factors when fighting, exploring or facing puzzles. The game is downright magical, and I honestly wouldn’t have it any other way.

 

 

3. Assassin’s Creed Origins (Ubisoft Entertainment, Ubisoft Montreal)

Platforms: PC, PlayStation 4, Xbox One.

Estimated Sales: Hard to say. Launch sales were twice as much as 2015’s Assassin’s Creed Syndicate, but that title had soft figures compared to others in history. It has almost 500K owners on Steam, but without specific console numbers I won’t speculate.

 

Ubisoft is another company that had a stellar year, and its best 2017 game is also its most important since it signaled a new direction for the decade-old Assassin’s Creed series. Set in Egypt around 50 BC during the occupation of Greek and Roman forces, Origins is hands-down the most beautiful game I played this year in terms of technical accomplishment and general art direction. (Note I played the Xbox One X Enhanced version. 4K, High Dynamic Range, all that). Not only that but it also implements a loot system where I’m constantly earning new gear with which to experiment, and its upgrade options allow me to spec my character in a way that aligned with my intended play style and equipment load-out.

 

Speaking of character, I appreciate that it leans into original ones more than historical figures this time. Though Cleopatra is a key part of the overarching narrative. The protagonist Bayek is a kind of super-cop of his era, while his wife Aya is more of a freedom fighter. Its characters are enriched by the story and especially its vastly improved side quests that build out Bayek’s legend. Mini-stories remind me of games like The Witcher 3 and Fallout in both their world-building and character development. In one such quest, an older man begs Bayek find a very important book that will allow his wife to pass safely into the afterlife. But when Bayek returns, the man has since passed away. Bayek is left to find the gentleman receiving last rites and in a bittersweet moment, he leaves the book alongside his body in hopes that it allows both him and his wife to rejoin each other in the world beyond.

 

My only knocks against the game is that the modern day sequences are not very engaging, and its huge map is daunting when you first enter the world. Even so, Origins has vaulted ahead of great entries such as the aforementioned Syndicate and even 2013’s Assassin’s Creed IV Black Flag to settle as one of my top picks in the entire franchise, because it takes risks and distinguishes itself as being able to stand on its own merits while also connecting with the underlying lore.

 

 

 

4. Horizon Zero Dawn (Sony Interactive Entertainment, Guerilla Games)

Platforms: PlayStation 4.

Estimated Sales: At least 3.4 million units, near launch. I’d wager close to 4.5 – 5 million by now based on the PS4’s user base rocketing above 70 million consoles.

 

Horizon Zero Dawn is the first “brand new” game on my list, as Guerilla Games creates a post post-apocalyptic world in which a small group of people has reestablished tribal communities after barely surviving a major calamity. Cool twist is in the 31st century, the main relics of the past are actually massive, mysterious robot creatures that resemble real-life animals or dinosaurs and are super hostile to humans.

 

But alas, Aloy is the playable character here and she’s a bad-ass, bow-wielding hunter-gatherer with an ability to combat these crazy mechs and even interface with them using technology from millennia past. After her mentor is tragically killed, she sets out on a quest to see why she’s so special and what actually happened to humankind. It’s a gorgeous, majestic open world action game with a gripping narrative and varied combat encounters as enemies require different tactics to outsmart and overcome.

 

The reason Horizon is so good is it borrows elements from a variety of games within the 3rd person action and open world genres then integrates them into a setting that is pure eye candy. For instance, take “Cauldrons.” These are cool-looking underground areas featuring light puzzles and tough combat engagements. Picture lots of neon lighting and man-made structures combined with natural formations. Emerging victorious from each Cauldron allows Aloy the ability to control a new set of machines, tying back into the lore of the world while also advancing the player’s set of powers.

 

In the end, Horizon features two parallel story lines: A brewing tribal war, and Aloy’s search for her past and discovery of the ultimate fate of ancient humans. These both pay-off in a big way, marking one of the most memorable blends of gameplay and narrative of 2017.

 

 

5. Destiny 2 (Activision Blizzard, Bungie)

Platforms: PC, PlayStation 4, Xbox One.

Estimated Sales: Well over 6.3 million units, based on Activision announcing it has outsold its predecessor. Activision also noted it’s the 2nd highest-selling console game in North America this year based on dollar sales, behind only Call of Duty: WWII.

 

Rounding out my Top 5 is what began as my most-anticipated game of 2017, the sequel to Bungie’s 2014 shared world, multiplayer shooter Destiny. Let’s be frank: Anyone that knows me or reads my Twitter timeline already knows how much I love this sci-fi franchise, so it shouldn’t be a shock that this ranks as high as it does despite mixed reactions from critics and community alike.

 

Destiny 2 is not a perfect game. But it is among the best in the business at what it does well. It has a most amazing art design, especially its wonderful sky-boxes and stunning color pallet, which players can now enjoy in 4K on premium platforms and an uncapped frame rate on PC. It has an intense, entertaining campaign that vastly improved on the original game. Its character customization and equipment options are varied so that no two players look the same, and the feeling of snagging that one piece of loot you’ve been hoping for is always triumphant.  Its co-op activities, especially the high-level “strike” missions and its difficult six-person raid, are unlike anything you’ll see in a modern first-person shooter.

 

Though what really stands out and keeps me coming back is its stellar gameplay. Its moment-to-moment mechanics of moving through environments to encounter and take out enemies is the best of any shooter maybe of all time. I argue this is its most important feature, outweighing any trouble it has with stagnant progression, end-game incentives and weak player-vs-player competitive play in the “Crucible” game mode. Like I said, Destiny 2 has its fair share of issues, but it’s still my favorite game to play alongside friends and I keep returning to it months after initial release.

 

 

6. NieR: Automata (Square Enix, Platinum Games)

Platforms: PC, PlayStation 4.

Estimated Sales: 2 million units.

 

I didn’t expect to even play Platinum Games’ follow-up to its cult hit NieR until I tried its short demo, available shortly before release. But this odd, way out-there action game with elements of JRPGs, arcade shooters and bullet hell genres stands out in a competitive year mostly because of its magnificent soundtrack, unique structure and absolutely outrageous story that forced me to contemplate the very nature of existence and what it means to be “alive.”

 

Deep stuff, I know. But when a game takes place in a distant future where androids, created by humans, are locked in a perpetual battle with machines, created by ancient aliens, you know it’s going to go places. And go places it does. I don’t want spoil too much, but what NieR: Automata does so well is it tells its overarching story from the perspective of multiple protagonists: Androids with “designations” like 2B, 9S and A2 instead of actual names. The androids and machines of this future world are mostly fighting each other, true, but are also learning about themselves and the world as this fight wages on. It shows how the created begin to take on characteristics of their creators, and what happens when these artificial intelligences begin to discover what, and eventually “who,” they actually are.

 

Some of the knocks against the game are it isn’t the prettiest-looking (and it ain’t), its map is a jumbled mess, its systems are opaque and the second “act” drags on because the player is revisiting a major story line from the first but in a slightly different way. This is why it’s not higher on my list. And it’s so difficult to talk about the genius of NieR: Automata without doing a full analysis of its story and themes, but suffice to say that if you are into games with killer soundtracks or narratives that weave themes of philosophy, science, AI and existentialism, then you will dig the heck out of this one.

 

 

7. Cuphead (Studio MDHR)

Platforms: PC, Xbox One.

Estimated Sales: 2 million units.

 

Since Cuphead’s reveal during E3 of 2014, I had been using the same (bad) running joke: Whenever someone brought up the game, I’d say “Believe it when I see it. And I don’t think I’ll ever see it.” Think about it: A super ambitious, hand-drawn title using the animation style of a 1930’s cartoon being developed by a tiny studio run by a family that had never commercially released a game. A niche Microsoft exclusive showed at every trade show for years, rumored as nothing but an onslaught of very challenging boss fights in a two-dimensional play area. Then, it was updated to include platforming levels that felt “tacked on” by those that saw them behind closed doors. Plus, for a long while, there was no release date in sight.

 

Boy am I glad that I was wrong, as were those that previewed those early builds, now that it’s hit the market. Sibling tag-team of Chad and Jared Moldenhauer, along with help from Chad’s wife Maja and others at Studio MDHR, have made one of the most extraordinary video games I’ve ever played. A run-and-gun platformer that literally looks and feels like a cartoon made during the time between the Great Depression and World War II. Yes, it’s still mostly an onslaught of bosses with a handful of collectible platforming levels scattered between. But it *works*. Each foes is expertly-crafted and animated with such nuance and skill that I’m still in awe it exists. Plus it has a snappy overworld, a multitude of weapon types and purchasable power-ups allowing different styles depending if a player wants more health or the ability to teleport. And it’s music.. Spectacular. Imagine an epic boss battle amidst a backdrop of an iconic jazz or bouncy swing tunes playing live as you methodically dismantle your opponent.

 

Its main downside is the barrier to entry is high, as many players will be turned off by its difficulty including an especially frustrating sequence right before the final encounter. However for those that are fine failing over and over again just to experience that one moment of monumental triumph, Cuphead is best-in-class.

 

 

 

8. PlayerUnknown’s Battlegrounds (Bluehole/PUBG Corporation, Microsoft Studios, Tencent)

Platforms: Mobile, PC, Xbox One.

Estimated Sales: 30 million units. (And it will probably be, like, at least a million more by the time you read this.)

 

Here it is. Better or worse, PlayerUnknown’s Battlegrounds (or PUBG for short) is the biggest story in gaming this year. And it wasn’t even a full commercial release until just a week ago, spending the bulk of 2017 in a preview mode on PC. It’s even still an “early access” title on Xbox One. The battle royale, Hunger Games-style multiplayer game that started as a mod for survival games is a phenomenon because of its simple yet elegant premise: One hundred players parachute out of an airplane onto an island full of weapons and armor, and the last person standing wins.

 

You might say: “That’s not original! I’ve seen this before!” And you’d be right. It’s one of many in the battle royale, last man standing genre. But I’d argue why PUBG is so beloved (and hated, by its detractors) and ultimately successful is a much more nuanced discussion. It’s a game going for realism, but its charm actually lies in its rough edges and “jank.” Its natural pacing is impeccable, as players experience the endorphin rush of a good loot game every single match between moments of high intensity and much-needed recovery. Its combat is very difficult to master, which means every successful kill feels like a victory in and of itself and an actual victory feels like bliss.

 

Similarly, every mode echoes a different genre: Solo play is a stealth-action horror game, where death can be behind any corner.. or bathroom door. Duos becomes an intricate, technical tango between two players calling out drops and enemy locations. And squads mode is a frantic, fast-paced feud of four-person teams. PUBG offers something for every type of competitive player, and its “circle” mechanic where the map slowly shrinks forces the action no matter the mode, resulting in memories and YouTube videos galore.

 

From a technical standpoint, PUBG has a long way to go. It only has two maps on PC, and just one on Xbox. It crashes and drops connections regularly on console, to a maddening effect. Though it has a solid foundation in place, and an addictive gameplay loop can hold players over until its tech is cleaned up and more variety is offered in terms of map locations. Here’s to your next Winner Winner, Chicken Dinner!

 

 

 

9. What Remains of Edith Finch (Annapurna Interactive, Giant Sparrow)

Platforms: PC, PlayStation 4, Xbox One.

Estimate Sales: Yet another one where it’s hard to tell. Almost 120K owners on PC, but indie publishers often don’t disclose exact overall sales figures.

 

Indie studio Giant Sparrow’s spiritual successor to The Unfinished Swan is a masterwork in storytelling and world-building, and an emotional journey into one family’s tragic history. It follows Edith Finch, the last remaining survivor of her family, returning to her childhood home in the Pacific Northwest to delve deep into the memories of her deceased relatives. As the player, I walked and explored this makeshift house that seemed to reach into the heavens, climbing until I reached its pinnacle which both physically and figuratively acted as the climax of the overall narrative.

 

Its story is told via a sprinkling of vignettes showing each relative’s last moments, from a food-poisoned young woman who believes she is transforming into animals to an infant playing gleefully in a bathtub to a grieving uncle who opted to live in secrecy in a bunker underneath the property. In its most poignant mini-story from both a gameplay and story perspective, Edith’s brother Lewis is a drug user and cannery worker who daydreams of being a prince in a fantasy world. The game sees you controlling Lewis cutting fish with one hand while simultaneously moving about through his fantasy world with the other. The scene plays out as him traversing mythical lands to find his true love, the princess, all the while conducting the mundane task of his day job. It’s bittersweet in its message, and flawless in its execution.

 

Some of What Remains of Edith Finch is predictable because of its linear nature, and it’s a dreary game in terms of its overall look, but its unconventional story and final payoff outweigh these flaws to become one of my major indie recommendations for 2017. Its vignettes perfectly encapsulate snapshots in time, right before tragedy strikes. Moments that the main character, and I, end up cherishing.

 

 

 

10. Nioh (Sony Interactive Entertainment, Koei Tecmo, Team Ninja)

Platforms: PlayStation 4, PC.

Estimated Sales: Over 1 million units. Likely more, since that was a figure based on the weeks after release way back in February.

 

Rounding out my personal “Top 10” is Team Ninja’s challenging, hack-and-slash RPG Nioh. Set in feudal Japan, the protagonist is an Irish sailor turned samurai (yes, you read that right) named William who embarks on a quest to take down a devious villain with supernatural powers. One twist is this dark version of Japan is infested with not just human warriors but otherworldly foes called “yokai,” some of which tower over William in foreboding fashion or evolve into different forms. Upside is William can also call one of a number of spirit animals to his aid, and he builds an arsenal of melee and ranged weapons to support his effort.

 

Nioh is far from an easy game, especially early on when you have limited options in terms of armor, skills and upgrades. Many enemies can take out William in one or two swings of their weapon or a well-timed elemental attack, so cunning and timing are essential in combat. I needed to carefully consider my path through each level, unearthing shortcuts along the way that help when I respawn after my inevitable demise. But its epic boss fights are the real treat: Beating adversaries like a former mentor turned massive, pipe-smoking toad, or a hybrid lion-dragon chimaera monster or even a gigantic multi-headed sea snake is akin to the ecstasy felt if succeeding in games like Dark Souls or Battletoads.

 

Another draw of Nioh is it’s extremely rewarding in terms of loot and currency, seeing each battle result in a literal explosion of items to pick up from the ground. It also integrates a number of smart systems. When you die, a version of your character can then be summoned in other players’ games as a ghostly “Revenant.” You can also summon co-op partners to support in your current mission, or even have the ability to run most missions with a friend. Lastly, it offers higher-level versions of its missions that reward the most coveted gear. It’s this cross section of rewarding gameplay, intricate systems and the jubilant feeling after each encounter that makes Nioh so special.

 

Honorable Mentions (Alphabetical Order):

 

Call of Duty: WWII (Activision Blizzard, Sledgehammer Games)

Platforms: PC, PlayStation 4, Xbox One.

Estimated Sales: Best-selling console game of the year globally, and has generated over a billion dollars in revenue. Quick calculation leads to around 16-17 million units assuming it sells most of its copies at full-price. But if we assume discounts & exchange rate conversions etc, I’d wager 14-15 million already.

 

 

Hellblade: Senua’s Sacrifice (Ninja Theory)

Platforms: PC, PlayStation 4.

Estimated Sales: Over 500K units. Ninja Theory disclosed that the game has exceeded expectations and is now profitable.

 

 

Resident Evil 7: Biohazard (Capcom)

Platforms: PC, PlayStation 4, Xbox One.

Estimated Sales: 4.1 million units.

 

 

 

Splatoon 2 (Nintendo)

Platforms: Nintendo Switch.

Estimated Sales: 3.61 million units.

 

 

Wolfenstein II: The New Colossus (Bethesda Softworks, MachineGames)

Platforms: Nintendo Switch, PC, PlayStation 4, Xbox One.

Estimated Sales: Unfortunately not a huge commercial success. Just above 370K owners on Steam. No word on exact overall or console sales.

 

 

There you have it! What a year. I hope you gamers out there were able to play some of these titles, and got as much enjoyment out of them as I did. Thanks so much for making it this far, and let me know how you feel about these in the comments or on Twitter! Here’s hoping 2018 can live up to its incredible predecessor.

 

 

Sources: All screen caps taken by yours truly on one of the listed platforms, usually Xbox One for multi-platform titles. Estimated sales from an amalgamation of sources, including company announcements, financial statements, NPD Group, GfK/UKIE, equity analysts, social media posts etc. If you are interested in details behind sales stats, please drop me a line.

 

-Dom

Companies of E3: Nintendo Spotlight & Treehouse Live

 

 

Nintendo $NTDOY is the last company to have an official press event, albeit in digital form rather than a live show. First it shared a 25 minute-long Spotlight with fans, which you can see in its entirety above, and now it’s moved right into a long session of Treehouse Live. It will be streaming its Treehouse Live segment from E3 both today and tomorrow.

 

Don’t let the length of its showcase fool you; Nintendo packed in a ton of games and reveals into this time, which you’ll see broken out one-by-one below, and it’s still revealing new stuff on its ongoing streams. Not to mention, we now know a lot more about Super Mario Odyssey!

 

What It Showed:

 

 

Super Mario Odyssey: It was shown at the end of the digital show, but I have to write about it first here. I’m not often rendered speechless. But Nintendo’s trailer and subsequent gameplay that it’s streaming as I write this for its upcoming 3D Mario game is breathtaking. And we now know its release date: October 27th!

 

 

Here’s the gameplay segment from Nintendo’s Treehouse Live. Almost a half hour long. Lots of mechanics and areas shown, including a really cool section when it transitions from 3D to 2D gameplay. The game continues to surprise and charm!

 

 

Montage: Briefly showed a trailer featuring a number of games: ARMS, Pokken Tournament, Rocket League (a new announcement for the platform), Splatoon 2. Basically, a number of multiplayer games that can be played on Switch.

 

 

Rocket League: As mentioned above, the 2015 competitive online game that blends cars and soccer will be out on Switch in Holiday 2017.

 

 

Xenoblade Chronicles 2: Japanese RPG from Monolith Soft will be releasing Holiday 2017.

 

 

Kirby: New Kirby game, with a working title, releasing next year.

 

 

Metroid Prime 4: There is actually a mainline Metroid game being developed for Switch. But all we get today is a logo, hah!

 

 

Metroid Samus Returns: Nintendo has announced two Metroid games in the same day, which is crazy. This is a 3DS game that Nintendo just unveiled on its Treehouse Live stream.

 

 

Yoshi: Nintendo is really bringing its A-game when it comes to its established, most popular franchises. This time it announced a new Yoshi game, no title, releasing next year.

 

 

Fire Emblem Warriors. Upcoming hack-and-slash game for both Switch and New 3DS, this is a collaboration between Intelligent Systems and Koei Tecmo.

 

 

The Legend of Zelda Breath of the Wild, New DLC: As Nintendo announced back when the game was announced, Breath of the Wild is the first game in the franchose to have post-launch additional content. Which is awesome, because it means we get more of one of the best games this year. First pack is June 30th, at which time there will also be four new amiibo figures available for characters in the game.

 

 

 

Mario + Rabbids Kingdom Battle: Same game we saw at Ubisoft’s show yesterday. Releasing August 29th.

 

 

Elder Scrolls V: Skyrim for Switch: Similarly, we saw this game at Bethesda’s show on Sunday night.

 

What It Didn’t Show (Yet): Super Smash Bros, Capcom’s Monster Hunter XX, Online Service, Virtual Console or Mini SNES.

 

Now that Nintendo’s Spotlight has finished up, it marks the end of the major conferences for this year’s E3. But the festivities are just kicking off, with the show floor opening today and running through Thursday. I’ll probably have another write-up or two before the week is up, but follow me on Twitter for updates in the interim. Thanks again and enjoy the show if you are there or following from home!

 

-Dom

Casual Friday: February 24th, 2017

 

Hi! Yup, it’s me again. Dom. I know it seems like it’s been a while.

 

I’m back with a new edition of Casual Friday for February 24th, where I round up the week’s most recent and relevant news to give a quick commentary. This week the companies featured are Nintendo, Koei Tecmo, Sony and Microsoft. Take a load off, keep it casual!

 

 

It’s hard to believe that the newest console from Nintendo ($NTDOY), the Switch, is out just a week from now next Friday, March 3rd. But it’s true, it’s around the corner and that means previews of the console-handheld hybrid itself plus its launch games such as Zelda: Breath of the Wild and 1-2 Switch are starting to pop up. While we won’t get full reviews on the Switch until next Wednesday, March 1st or Zelda until next Thursday, March 2nd, we do know the early impressions are somewhat mixed on the hardware.

 

The concept of the Switch is awesome: a device that you can dock at home to play games on your TV, then bring on the go as a handheld gaming device. But according to previews and hands-on impressions, the execution is where it’s lacking so far leading me to believe the launch of the system is a bit premature. The reason? I think it’s that Nintendo wants to release it before fiscal year-end in March, before which the company has stated it will ship 2 million units. All hardware launches are messy, granted, but the Switch is being bogged down by a number of concerns: lackluster launch line-up apart from Zelda, technical issues with its “Joy-Con” controllers, no Virtual Console at launch (a service where gamers can download and play classic Nintendo games) and lastly, certain aspects of its online services will not be available right away.

 

Don’t get me wrong, I’m excited for the console and will personally be a day-one buyer. I just feel that Nintendo is soft-launching the Switch hardware around its financial calendar, which is causing some features to be non-existent and lots of games are still in development. Good news is that I fully expect the console to look a whole lot better come holiday season later this year.

 

 

In very upbeat news, Japanese publisher Koei Tecmo ($3635) shared that its latest samurai action game Nioh has sold more than 1 million copies worldwide in just its first two weeks on sale. This is great news for the publisher of games like Dynasty Warriors and Ninja Gaiden, the latter of which being made by Team Ninja, the same team responsible for Nioh. You’ll also recognize the Tecmo name from classic sports titles like Tecmo Bowl during the late 80’s. Nioh features action and role-playing elements and is lauded (or cursed, by some) for its very challenging difficulty, pitting the main character William against tough human enemies and supernatural bosses during a trek across 1600s war-torn, Sengoku-era Japan.

 

There are a number of reasons I find this number quite impressive. First, the game is a PlayStation 4 exclusive title and a brand new IP for Koei Tecmo in somewhat of a niche genre. Also, the game is almost entirely in Japanese and its story is communicated via subtitles. Lastly and arguably most notably, Koei Tecmo totally underestimated how much demand there would actually be for this game as it based physical shipments on pre-order figures. This is proven by the firm openly acknowledging that retailers do not have stock. Even the game’s Amazon listing has shown a one to two-month shipping target for the past week or so. I can’t recall the last time that’s happened for any game!

 

What that means is this sales figure could have been even higher if more physical copies were available. Especially in Japan, where in a show of goodwill, the company offered a discount on the digital version if you were to purchase it in lieu of a physical disc.

 

 

 

As you can see, it’s quite a busy time for tech and gaming in particular. In other big gaming news, Sony ($SNE) and its internal studio Guerilla Games is releasing sprawling open-world action title Horizon: Zero Dawn next week and it’s been getting rave reviews. Horizon is another PlayStation 4 exclusive title, set in a world where humans have reverted back to tribal ways and now coexist with technologically-advanced animals of all kinds. It features a strong female protagonist named Aloy (not the most “traditional” name, I know) that is trying to find the origins of both her people and the mysterious, mechanical creatures.

 

Reviewers have compared Horizon to games like Tomb Raider, as both star leading ladies with bad-ass bow-and-arrows, or even RPGs like Witcher 3 in that they are set in beautiful, lush open worlds. Friends at Super Data predict that the title could sell around 8 million copies over its life span, but I actually think it could reach almost that amount just this year IF Sony bundles Horizon with a version of its newest console version the PlayStation 4 Pro. Which it would be silly not to, honestly.

 

Think about a triple-A console exclusive such as Uncharted 4: A Thief’s End, which has sold roughly 8.7 million copies since its release mid-last year. Granted that’s an entry in a well-established series, while Horizon is a new brand, but I still think it proves there is huge upside for a great exclusive within Sony’s ecosystem. Especially since I predict there will be at least 60 million PlayStation 4’s sold by this year’s end, if not more, I believe Horizon can eclipse 7 million in a year’s time implying roughly 11% of PS4 owners have bought the game. Not an unrealistic amount.

 

 

And now to wrap things up, let’s briefly chat on Sony’s main competitor this generation, Microsoft $MSFT. The firm’s Xbox brand has announced its Electronic Entertainment Expo (E3) briefing will take place on Sunday, June 11th at 2 pm Pacific/5 pm Eastern. Now, I tend to place less stock in the importance of public press conferences than other gamers, but even I admit it’s a big opportunity for Microsoft to tell us a lot about the future of its Xbox hardware family, Project Scorpio.

 

It’s no secret Xbox One is not selling as well as the PlayStation 4 this generation. Or that gaming revenues have declined recently for the firm overall. But I still think there is a lot of brand recognition and confidence behind Xbox, and it’s crucial to maintain healthy competition in the console gaming market. Microsoft’s online gaming service Xbox Live user base is up 15% since mid-2015 to 55 million active players despite being the lagging console in terms of hardware sales. Plus, sales are gaining within gaming software and services businesses, with digital game transactions hitting $1 billion for the first time in its history during 2016’s second financial quarter.

 

Additionally, the Xbox division under Phil Spencer’s leadership has placed user-friendly efforts of backwards compatibility (where you can play older games on the Xbox One) and cross-play across console and PC in the forefront. Sure, these types of features don’t necessarily sell consoles, but it’s crucial for Xbox to continue providing fan service in the interim before its (expected) big reveal of Scorpio in June at this E3 presentation. And I think it will be just that: a big reveal that will reinforce my confidence that Xbox can remain a viable competitor in the console space.

 

What are your thoughts on upcoming gaming hardware in Nintendo Switch or Project Scorpio? Have you played Nioh? Do you plan on trying out Horizon: Zero Dawn? Feel free to comment or chat on Twitter, and enjoy your weekend!

 

-Dom

 

Sources: Nintendo, Koei Tecmo Twitter, Sony, Open Critic, Super Data, Microsoft, Xbox Twitter