Technical specifications and price
7.57 We first assess the closeness between the three consoles in terms of their technical specifications. This is important because gamers require high performance devices (eg in terms of memory, processing speed) to play graphically intensive games such as CoD. To the extent that a console does not meet these technical requirements, it is likely to compete less closely with other consoles for those games.
7.58 Xbox and PlayStation are similar in terms of their technical specifications, while Nintendo's technical specifications differ significantly from either of the two. As can be seen from the table below, the Nintendo Switch has significantly lower energy usage, fewer cores in the CPU, a lower clock speed, a significantly lower value of graphics processing power and performance and a smaller RAM as compared to PlayStation 5 or Xbox Series X.
295 By contrast, the PlayStation 5 and Xbox Series X are very similar to each other in terms of these parameters.
Table 7.2: Comparison of technical characteristics of the Nintendo Switch, Xbox X and PlayStation 5
Specification | Xbox Series X | PlayStation 5 | Nintendo Switch (TV mode) |
Launch Date | 10 November 2020 | | 8 October 2021 |
Energy Usage | 153 W | 208.8 W | 7 W |
CPU: number of cores | 8 | 8 | 4 |
CPU: clock speed | 3.8 GHz | 3.5 GHz | 1 GHz |
GPU: performance | 12 TFLOPS | 10.3 TFLOPS | ~0.77 TFLOPS |
RAM | 16 GB | 16 GB | 4 GB |
Sources: 'Unveiling New Details of PlayStation 5 Hardware Technical Specs' accessed by the CMA on 17 January 2023; 'Energy Efficiency: Active Power Consumption' accessed by the CMA on 17 January 2023; 'Xbox Series X' accessed by the CMA on 17 January 2023; 'About power options on Xbox One and Xbox Series X|S' accessed by the CMA on 17 January 2023; https://www.nintendo.com/switch/tech-specs/ accessed by the CMA on 17 January 2023; [] response to the CMA's RFI; 'Nintendo Switch OLED Model', accessed by the CMA on 24 January 2023; and 'PlayStation 5 Release Date, Pricing, and Launch Games', accessed by the CMA on 24 January 2023.
7.59 The Nintendo Switch is also different in terms of its portability. Unlike Xbox or PlayStation, which need to be connected to a monitor to function, the Nintendo Switch is a portable device that contains its own monitor. The Switch is also significantly cheaper (currently at most £310) than the flagship Xbox Series X and PlayStation 5 consoles (sold at £449 and £480, respectively), and is closer in price to the technically less capable Xbox Series S console (sold at £250).
7.60 Activision's internal documents note the technical limitations of the Nintendo Switch console. For example, one Activision document notes in an early-stage assessment that, to produce a CoD title on the Nintendo Switch, the CoD game would need [
]
296 (whereas most current CoD titles require from 125 - 175 GB of storage on console or PC).
297 The document also refers to Apex Legends's [
].
298 Another Activision document analysing potential studios [
] CoD assesses the additional work required [
] and notes technical issues in other games [
].
299
7.61 We have also seen evidence that large shooter games do not run as well on Nintendo's consoles due to its technical differentiation. One third party submitted that graphically intensive shooters may often be targeted originally at PlayStation and Xbox due to the specific characteristics of their console performance, and that porting to the Nintendo Switch may require financial investment and compromises on graphical quality, or the use of cloud-gaming solutions.
300
7.62 Publishers' views similarly indicated that developing a game for Switch is a significantly different task relative to doing it for Xbox and PS due to its technical differences. One publisher stated that it encountered technical difficulties when bringing a game to Nintendo Switch but no difficulty in bring the same game to Xbox or PlayStation. The publisher noted that the Switch's limited graphics and storage are technical limitations that affect the performance of competitive games more than that of game(s) brought to Xbox or PlayStation.
301 Another publisher stated that several of its games are not available on Nintendo as Nintendo has different capabilities from PlayStation and Xbox.
302
7.63 We note the Parties' submission that challenges with porting a game to Nintendo Switch has not impacted Nintendo's ability to compete on the downstream console market, as it offers more games than Xbox and PlayStation, including major games such as
Apex Legends,
Fortnite and
Doom Eternal.
303 However, we consider the evidence above shows that, relative to the Xbox and PlayStation, the Nintendo Switch (i) does not currently offer the same suite of graphically intensive games that PlayStation and Xbox compete on (with the exception of a few games such as
Fortnite and
Apex Legends), (ii) may not be capable of offering certain graphically intensive multiplayer games (such as CoD), and (iii) does not offer a similar user experience (eg, in terms of storage, graphics, and framerate).
7.64 We also note the Parties' submission that Nintendo’s partnership with Ubitus' cloud streaming technology to release
Resident Evil Village on Switch enables gameplay with levels of graphical fidelity comparable to that found on a high-level PC, PlayStation 5 or Xbox Series X.
304 However, as discussed above, we consider that there are currently significant differences between cloud gaming and gaming on consoles (eg, the need for an internet connection to stream games from cloud gaming services). Also, the ability of the Switch to connect to a third party cloud gaming service provider would not make it a closer competitor to Xbox and PlayStation in the console gaming market.
7.65 Overall, the evidence shows that the product characteristics of Nintendo Switch are significantly different from those of Xbox and PlayStation, including its technical specifications, capability to host graphically intensive games and prices. Xbox and PlayStation are more similar in this respect.
295 This is measured in TFLOPS, or Tera floating point operations per second.
296 Activision Internal Document.
297 See for example, Minimum and Recommended System Requirements for Call of Duty: Warzone Caldera on PC (activision.com) and Minimum and Recommended System Requirements for Call of Duty: Modern Warfare on PC (activision.com), accessed by the CMA on 17 January 2023.
298 Parties Internal Document.
299 Parties Internal Document.
300 [] response to the CMA’s.
301 [] call note.
302 [] response to the CMA’s RFI.
303 Microsoft, response to working papers; and Microsoft response to the phase 2 Issues Statement, 31 October 2022, paragraph 3.46(c).
304 Microsoft response to the phase 2 Issues Statement, 31 October 2022, paragraph 3.46(c).