Nintendo (OTCMKTS:NTDOY) and Microsoft (NASDAQ:MSFT) have seen their game console fortunes taking opposite trajectories. Nintendo stock has exploded out of the Wii U gutter on massive Switch sales, while the Xbox One has been somewhat of a disappointment.
One thing both companies can agree on is taking down Sony (NYSE:SNE), maker of this console generation’s runaway sales leader — the PlayStation 4. Nintendo and Microsoft just teamed up in what has to be an industry first: a Nintendo Switch commercial for the game Minecraft, featuring a second player on an Xbox One.
Individually, they may not be able to take out Sony. But with the PlayStation 4 suffering a black eye recently for refusing to support cross-platform play on the hit game Fortnite, Nintendo and Microsoft smell blood and they’re on the attack.
‘Minecraft’ for Nintendo Switch Gets a Big Update, Including Cross-Play Support
Yesterday, Nintendo announced a big update for Minecraft on the Nintendo Switch. Minecraft (which is actually a Microsoft property, after the company paid $2.5 billion for developer Mojang a few years ago) has been a best-selling game for years, and it’s been on the Switch since 2017. However, this new update is built on the Bedrock Engine. And that means Nintendo Switch owners can play Minecraft with anyone on a PC, mobile device or an Xbox One.
But not the PlayStation 4. Minecraft players on Sony’s console are left to play only against other PS4 owners.
Sensing this is a moment, Microsoft and Nintendo took things a step further. Nintendo released a video announcing the new version of the game and took the unprecedented step of promoting the Xbox One — showing a Nintendo Switch player and an Xbox One player, enjoying Minecraft together.
Leveraging the ‘Fortnite’ Cross-Play Fiasco
This whole cross-play issue blew up in a big way two weeks ago when Fortnite was released for the Nintendo Switch. Currently, the hottest video game on the planet, Fortnite was downloaded over 2 million times by Nintendo players in its first 24 hours of availability.
And there was an immediate outcry against Sony. First, the PlayStation 4 was the only platform that doesn’t support cross-play. PS4 players can only compete against other PS4 players. Meanwhile, Switch players were taking on Xbox One, PC and mobile players. Even worse, it turned out that Sony wouldn’t let PS4 Fortnite players access their account on a Switch.
That was a big deal because many PC and console owners looked at the Nintendo Switch as the answer to their portable gaming dream. They could play Fortnite on their big system, then log into their account and continue on the fly on a Nintendo Switch.
PlayStation 4 owners were feeling left out of the entire cross-play experience and some were feeling burned by Sony over the added limitations on their Fortnite account.
With that anger still hot, Nintendo and Microsoft did the unthinkable and cooperated.
Sony is the runaway leader in this generation of video game consoles. The Nintendo Switch is hot — strong sales led to a 500% profit increase for Nintendo in 2017 and NTDOY stock has bounced back from the drubbing it took from the failed Wii U. But the Switch has only been available for just over a year, so its total units sold are around 17.5 million. Microsoft’s Xbox One has notched a disappointing 37.6 million sales. And the PlayStation 4 comfortably leads the pack at nearly 80 million units.
That huge Sony lead — and the smell of blood in the water after the Fortnite cross-play fiasco — was enough to bring Nintendo and Microsoft together in an attempt to hit their common foe. There are still a few years left in the current generation of game consoles, and while the PS4 has ruled the sales charts to date, Microsoft and Nintendo are pulling out all the stops to change the narrative going forward.
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
