From Celine, on InstallBase/IB:
Bringing Taiwan to the World and the World to Taiwan
www.taipeitimes.com
They'll have a lot of ToTK game cards to supply chips for, at least.
I think this comment on the last page is mostly true ...
... the only rider I'd add to that is if most of those 80% become 4K TV owners, and start to think that the image quality on their new screens when docked looks a bit rubbish. Also if friends and family are now easily able to get PS5s to show off with.
The same was true for the PS4, though. The average FIFA or CoD player didn't care about 4K or fancier graphics (they were hardly buying the PS4 Pro in massive quantities), and would have happily kept playing on the PS4.
The reason new console generations come along isn't because players become desperate for better graphical fidelity, it's because console manufacturers want to keep making money. Hardware sales tail off towards the end of the generation as a console hits its saturation point, and software sales naturally follow as owners gradually stop using the console and move on to other things. That may have nothing to do with the technical capabilities of the console, it's just a general decline of interest that's inevitable over the lifetime of ownership of any product.
So, to prevent Console Manufacturing Corp's hardware and software sales from dropping gradually to zero, leaving them unprofitable, they have to do something to spur sales, and that thing is release a new generation of hardware. Selling people new hardware will lead to renewed interest in software, which will lead to more profits. Of course you want people to buy New Console when many of them already own Old Console, which means you have to convince them that the incredible New Console is much better than that crummy Old Console they have sitting under their TV.
The standard way of doing this (at least for Sony and MS) is to make New Console more powerful than Old Console. Over the course of the generation technology improves, so giving New Console better specs than Old Console is something you can do basically for free (in the sense of being able to offer more performance for a similar price). It's also easy to advertise, just compare the big numbers on New Console to the puny small numbers on Old Console. It's much easier to sell people on a quantitative difference than a qualitative one. Or better yet, just keep saying that the quantitative difference
is a qualitative one, even though gameplay is basically unchanged since Really Old Console.
From Nintendo's point of view, Old Console's hardware sales, while relatively healthy for its age, have started an irreversible decline as it's hit market saturation. Software sales have stayed high thus far, but will also inevitably decline. So for Nintendo, the question is at what point in that decline do they need to introduce New Console to prevent profits from declining too far? Or, more accurately, when did they predict they would need to introduce New Console, given the project to ensure both hardware and software are ready for New Console's launch would have had to be started several years beforehand?
I'm also curious if Nintendo will use the bigger numbers approach to try to convince players to move to New Console. Historically they've taken the qualitative approach to selling new hardware, with both successes and failures, but this time it looks like we're getting a New Console that doesn't differ that much qualitatively from Old Console, but is a big improvement quantitatively. Absolute numbers probably wouldn't put them in the best light next to power-guzzling stationary consoles, but relative numbers like "X times more powerful than Old Console" may be necessary to convince players that it's worth switching over.