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Chinese consumers are not taking to the domestic version of the Nintendo Switch because it has limited titles and updates are slow, an analyst says. Photo: Shutterstock

Chinese gamers are snubbing the local version of Nintendo Switch in favour of imported consoles

  • Online peddlers are hawking imported Switch consoles for almost twice the price of the domestic Chinese version
  • The Chinese Switch, launched by Nintendo and local gaming giant Tencent, supports only three games so far
Nintendo
Nintendo Switch is selling like hot cakes in many countries, with online price gougers demanding up to twice the retail price, but sales for a Chinese version launched just months ago have been underwhelming in comparison.

On Chinese e-commerce sites Taobao and JD.com, the average asking price of a new Switch is upwards of 4,000 yuan (US$566), almost twice the console’s recommended retail price of US$299.99. In contrast, the Chinese version which hit the shelves in December last year can still be purchased from official sales channels at its regular retail price of 2,098 yuan (US$296), with no apparent supply issues.

(Taobao is an e-commerce platform operated by Alibaba Group Holding, the parent company of the Post.)

On the second-hand market, a used regular Switch often still goes for at least the recommended retail price, while many gamers are selling their fairly new China Switch consoles at only 1,600 yuan (US$226) on Taobao’s second-hand goods site, Xian Yu.

The divide is an example of how consumers in China, the video game industry’s biggest market with an estimated 720 million gamers according to Niko Partners, are willing to pay more for a grey market console to get around strict government regulation of the industry.

The Chinese Nintendo Switch finally has more than one game

With more than 50 million units sold by the end of last year according to its website, Nintendo Switch was already one of the bestselling gaming consoles worldwide prior to the Covid-19 outbreak. With millions staying home under shelter-in-place orders to prevent the spread of the pandemic, the Japanese gaming giant has seen supply shortages in many countries, and is reportedly aiming for an output of 22 million units this financial year, according to Bloomberg.
But Kyoto-based Nintendo and Chinese gaming giant Tencent Holdings, which announced a partnership late last year to jointly bring the Switch to China, had to make changes to the device to get it past regulators for the highly anticipated China release.

Tencent and Nintendo did not immediately respond to requests for comment on Thursday.

An internet firewall divides gamers playing online multiplayer games on the Chinese Switch from regular Switch owners, preventing the two groups of players from interacting. As China requires games to be approved by the government, the Chinese version of Switch currently supports only three games – New Super Mario Bros U Deluxe, Super Mario Odyssey and Mario Kart 8 Deluxe.

Chinese gamers use a Tencent loophole to watch videos on the Nintendo Switch

Notably, the politically sensitive Nintendo smash hit Animal Crossing: New Horizons, launched last month, has not been approved for sale in China. That has not stopped Chinese gamers from snapping up smuggled copies of the game on Alibaba’s Taobao and Tmall shopping platforms, despite a hefty price tag of 600 yuan (US$85) on these channels – far more than the retail price of US$55 in Hong Kong or US$60 in the US.

The lack of support for multiplayer smash hits such as Animal Crossing has dampened consumers’ interest in the Chinese Switch, said Liao Xuhua, an analyst at data consultancy firm Analysys.

Hopes that the new Nintendo title – a social simulation game set on a deserted tropical island – would officially hit the shelves soon were dashed earlier this month when it vanished from online retailers and game live-streaming platforms in China, soon after Hong Kong pro-democracy leader Joshua Wong Chi-fung posted on Twitter about using the game as an online gathering place for the movement.

The banning of the game in China has further soured the mood among Nintendo gamers who were hoping that regulations for games compatible with their Switch consoles would be relaxed. “The owners of the domestic version of Switch probably feel too sad to even shed a tear,” one Chinese netizen wrote on consumer gadget forum SMZDM. “Now with even Animal Crossing being removed, who would dare to promote the domestic version?” another commented.

Knock-off Animal Crossing game shows up on iOS App Store

Animal Crossing brings into focus the problems with the Chinese version,” Liao said. “Its widespread popularity has made even an average gamer aware of the Chinese version’s shortcomings.”

Ma Xiao, an analyst from New Times Securities, also said Chinese consumers are not taking to the domestic version of Switch because it has limited titles and updates are slow. “China still has some restrictions and constraints in place – it requires the platform holder Tencent to continuously make adjustments for compliance,” he added.

Nintendo and Tencent are working to bring more games to the Chinese Switch but the progress has been slower than expected, Liao said.

Mario Kart 8 Deluxe was supposed to be available weeks after the Chinese version was launched, but it arrived almost an entire quarter behind schedule,” he said. “This has put a dent in consumer confidence about the line-up of games potentially coming to the console.”

This article appeared in the South China Morning Post print edition as: Fans shun Chinese Nintendo consoles
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