Nintendo Switch 2 shows Nintendo’s strategy for an online social future

During yesterday’s Nintendo Showcase, the company presented a surprising announcement regarding the Nintendo Switch 2. Breaking from recent tradition, Nintendo revealed only a handful of new hardware improvements and instead concentrated on an area it has typically been cautious to explore: online multiplayer.

It turns out the enigmatic “C” button isn’t a magical key to extraordinary hardware features, but rather swiftly connects players to a function dubbed “GameChat.” GameChat appears to be a streamlined version of social platforms like Discord, serving as an all-inclusive hub for local multiplayer, video calls, personal gameplay streaming, and more, all through the Nintendo Switch 2.

In essence, the company that launched a mobile app to enhance voice chat on Nintendo Switch has gone all-in on a console-based micro social network.

What prompts the typically multiplayer-shy Nintendo to delve deeply into online multiplayer now? In a world where gamers are inquiring about “can I play with my friends?”, it appears the company has recognized a growing trend in the gaming industry: a future where gamers—especially younger ones—must continually play together.

Nintendo believes it can finally create “safe” online environments

During a follow-up presentation at a media event during the Nintendo Showcase, Nintendo of America president Doug Bowser hinted at the company’s reasons for finally allocating resources to robust online features. He mentioned how gamers of all ages can now “connect safely” and enjoy games with family and friends.

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“Safety” has been the key reason behind Nintendo’s reluctance to dive into online gaming. The company has historically focused on family-friendly titles, nurturing an audience of young gamers who may not typically engage in competition with platforms like Xbox Series X|S and PlayStation 5. However, as platforms like Roblox has shown, even the smallest misstep in moderation and player control can expose children to harmful situations.

Wired’s Megan Farokhmanesh questioned the company on this subject during a roundtable Q&A at Nintendo’s preview event. Switch 2 director Takuhiro Dohta explained that GameChat is an online system centered around the Nintendo Friends list instead of random game lobbies. Parents supervising their child’s online behavior through the parental controls app will have the ability to approve friend requests individually, decreasing the likelihood of encountering strangers online. He did not address the issue of safety features for minors whose parents do not monitor their activity through the parental controls app.

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Nintendo promotes GameChat as a feature enabling families to “play together, anywhere,” envisioning friends or family members gathered in a living room across long distances. It reflects a familiar sentiment of “together, apart,” often heard during the lockdown phase of the COVID-19 pandemic. In an “Ask the Developer” interview shared by Nintendo, producer Kouichi Kawamoto stated that GameChat’s streaming function (which allows players to broadcast gameplay to each other, a common feature on Discord) was “inspired by” Nintendo’s experiences developing games from 2020 to 2021.

“Back then, we were utilizing a video conferencing platform to review the software we were creating with our team, but the screen-sharing feature integrated into that platform only permitted us to show one gameplay screen at a time,” he explained. “So we had everyone position their game screens in front of their cameras instead of their faces. When we did that, it felt like we were all in the same space, each bringing our own console to play the game together, which was incredibly enjoyable.”

This is an experience many gamers had during the pandemic, to the extent that much has been discussed about how younger players spend their time in Roblox hanging out and having fun. Developers everywhere are noting how it is influencing multiplayer design. At DICE, Owlchemy Labs head Andrew Eiche and Riot Games co-founder and chief product officer Marc Merrill both shared insights into how their upcoming titles create spaces for gamers to simply hang out and converse, rather than automatically thrusting them into competitive gameplay.

Related:Nintendo has finally revealed the Swap 2, its successor to the Nintendo Swap

Several third-party-published games showcased during yesterday’s Nintendo Stammer include Survival Kids and Machine Generation Softworks’ Starseeker: Astroneer Expeditions, which were particularly designed with this concept in mind.

What first-party game is Nintendo using to highlight this type of social gameplay? Without question, it is Mario Kart World. During hands-on time with the game at the preview event, players had the opportunity to drive around a vast open world that featured elements from the game’s many tracks. It was only after I saw a few of the other 24 players racing along the course I was zooming on that I realized I could potentially go off track, and the experience provided a fun open foyer perfect for players to have fun in.

Within the Nintendo Stammer, the company explained that the open world would not merely be a barren sandbox, but an area filled with opportunities for exploration. It was easy to envision friends logging in not just to race, but merely to drive around and play bumper cars.

Online multiplayer is a significant business opportunity

Let’s get to the point— with a socially-designed Swap 2, Nintendo stands to gain significant revenue from multiplayer.

Accessing communication behind a Nintendo Swap Online subscription costs $20 annually. With the expansion pack, it rises to $50 a year. The highest they charge for online play is $80 a year for a full family plan.

These prices are modest when compared to subscription services on Xbox and PlayStation, however up until this moment, its offerings have been somewhat limited. A robust set of social tools is more likely to attract a large group of dedicated Swap users to make the transition.

The Swap 2 also now includes a particular hardware feature that sets it apart from other handhelds. To establish connected multiplayer features on other platforms, an ROG Ally, players must download an app like Discord and configure it to suit their playstyle before they can chat with friends. With the Nintendo Swap 2, players can start communicating at the push of a button.

Then there’s the enigmatic yet always-present idea of “brand loyalty.” Nintendo may not be short on dedicated gamers, but its scaled-back social systems have inadvertently created a path for players to exit its ecosystem. Now, in a distinctly Apple-like approach, Nintendo can enhance voice chat and screen sharing without redirecting customers to another service (and with the Nintendo Swap 2 Camera, it can also eliminate the need to purchase non-Nintendo hardware).

The tremendous success of the Nintendo Swap has certainly raised expectations for the Swap 2’s sales performance. While the multiplayer features themselves may not propel the system to over 150 million units sold in its lifetime (the upcoming The Duskbloods might have to do a lot of the heavy lifting), it lays the groundwork for additional monetization possibilities down the line.

Regardless of how the Swap 2 performs, its multiplayer-focused hardware indicates Nintendo is keeping a close eye on evolving trends. Multiplayer has long been a space that Nintendo has scarcely ventured into, so its decision to go all-in on the technology—especially in light of