- The Nintendo Switch 2 is likely to be a huge success
- DFC Intelligence claims that there is only room for one Nintendo competitor in the next console generation
- It's unclear whether this will be Sony or Microsoft
With the Nintendo Switch 2 looming ever closer, everyone is wondering whether Sony or Microsoft will be the Japanese giant’s biggest competitor in the next console generation.
According to industry analysts at market research firm DFC Intelligence, it’s still too early to tell though Sony hardware currently has a “slight edge” thanks to its strong following and compelling IP catalog.
The information comes from the firm’s recent 2024 video game market report and forecast, which details the trajectory of the gaming industry over the past year and predicts where it might go next. Importantly, the report does not consider the mobile gaming market which is estimated to bring in roughly $75 billion revenue.
The report suggests that we’re on the cusp of record growth in the rest of the gaming industry, driven largely by the launch of "two of the biggest products ever” - the Nintendo Switch 2 and Grand Theft Auto 6. According to the report, the Nintendo Switch 2 could have "significantly stronger launch sales” than its predecessor, though it will be difficult to beat the record 27 million Nintendo Switch sales back in 2020.
It goes on to question which company will be Nintendo’s biggest competitor, suggesting that “it is likely only one system will be successful” in addition to the Nintendo Switch 2. Sony and Microsoft are both predicted to release new consoles between 2026 and 2028.
The firm states that is “too early to know which other system will succeed” though claims that Sony has a “slight edge” thanks to its “loyal base and strong Sony IP”.
That said, Microsoft is still reportedly in a strong position thanks to its status as a software publisher. It may have “failed” with the Xbox Series X and Xbox Series S, but a series of "major acquisitions”, such as the Activision Blizzard acquisition completed in 2023, mean that it now has the option of focusing on software distribution rather than hardware.
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