Strategy question

For the next-gen Nintendo Switch, discuss the rationale for why this product should exist.

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What this question tests

Product strategy: articulating why a next-generation hardware product should exist, grounded in market timing and installed-base economics.

How to approach it

  1. Clarify assumed context: hardware refresh cadence, current Switch's aging chipset, and competition from Steam Deck and mobile gaming.
  2. State the market rationale: the installed base is huge, but hardware performance now lags competitors, limiting the games publishers can port.
  3. State the business rationale: hardware refreshes drive new attach-rate cycles for first-party software and accessories.
  4. Identify the target user: existing Switch owners wanting better performance, plus lapsed users pulled back by exclusive titles.
  5. Weigh risks: cannibalizing existing Switch software sales, and the cost of maintaining backward compatibility.
  6. Conclude with a recommendation, such as launching with strong backward compatibility and a marquee exclusive to justify the upgrade.

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