Coming from a GamesIndustry interview with multiple analysts...
"Nintendo's Switch reveal trailer unveiled a product positioning which aims to defend against the increasingly robust encroachment of the smartphone and tablet gaming opportunity yet still appeal to traditional console gamers that are looking for a big-screen gaming solution in the home. It has designed the Switch to deliver a flexible solution to cover multiple types of usage, but must avoid delivering a substandard experience by trying to be all things to all users.
Interestingly, the Switch reveal trailer was squarely targeted at young adults, which suggests that Nintendo is refocusing its early marketing on more traditional console gamers and those that also increasingly like gaming on the move. To build success with these buyers the offering must include third-party titles that are supported on other platforms. Nintendo looks to have killed off its motion controllers with the Switch and opted for a more traditional form of gaming experience. This suggests the company is serious about getting third-party publishers to support the platform with multi-platform titles. Potentially, this will help Nintendo's ambition to target young adult gamers.
Nintendo's ability to market a clear use case message to the audience [will be key]. Nintendo failed to do this with the Wii U and paid the price The reveal suggests it is competing more significantly with traditional home consoles, but with the edge of mobility. Pricing will need to be competitive in this context and anything over $300 may not be a convincing proposition.
The new console shares a number of design, positioning and component similarities with Nvidia's Shield tablet. As such it is likely that Switch will be capable of displaying 4K video content and judging by the pricing of the original Shield tablet is likely to sit in the $250-$300 range." - Piers Harding-Rolls, head of games research at IHS (forecasting 2.85 million units sold in March)
"They need a proper message. Right now I am concerned they are pitching it as just another tablet with controllers." - DFC Intelligence's David Cole
"I have my reservations with regards to the breadth of the audience it targets. The Switch will likely be most popular among a younger audience: its functionality is uniquely geared toward pre-teens and teenagers. While the device seems much less like a toy than we're used to from Nintendo, its features like backseat multi-player and the ability to have several people play using a single piece of the controller target Nintendo's traditional audience. The reveal video makes a lot more sense to me if you swap out all the adults in it with kids.
"I'm hoping they'll keep it under $300, ideally bundled with a Zelda or Mario Kart. Anything over that will severely limit its market potential." - SuperData's Joost van Dreunen
"Sorry, but is a portable/home console approach really that innovative in 2016? I am most concerned about the target group of the device: who else but die-hard Nintendo fans will buy the Switch? The Switch lacks a killer feature, and I think it will be very difficult for Nintendo to win back the casual gamers that are mostly on mobile now. In Japan, for example, the mobile gaming sector is already 2-3 times bigger than consoles. Even the PS4 struggles over here. It's going to be a huge challenge to try to reverse that trend.
I find it very difficult to picture a scenario where a critical number of mobile, free-to-play users converts to console and buy hard- and software for several hundred dollars upfront. Different markets, very difficult to bridge.
They must find a way to release the Switch at US$299 to stand a chance, that's the threshold. It's not impossible by offering the device in multiple versions, i.e. without the home dock. 'Hardcore' video game fans can, at US$299, already get fantastic devices from Sony and Microsoft. The portable gaming use case, at scale, has been taken over by smart devices." - Dr. Serkan Toto