SEGA's Shuji Utsumi Reflects on Nintendo Switch Success Amid Initial Industry Doubts

When Nintendo launched the Switch in 2017, it faced considerable uncertainty within the gaming industry.

Coming off the disappointment of the Wii U, Nintendo had a significant challenge ahead.

Initial support from third-party developers and publishers was tepid, as many companies approached the new platform with caution, unsure of its potential impact in a rapidly evolving market. Despite these concerns, the Nintendo Switch has proven to be one of the company’s most successful hardware ventures to date, surpassing 150 million units sold globally as of 2024.

Its hybrid design—allowing for both handheld and home console play—combined with a robust software lineup, drove rapid adoption and strong sales, securing its place among gaming’s all-time best-selling consoles. In a recent interview with The Game Business, Shuji Utsumi, CEO of SEGA America, SEGA Europe, and the COO and president of SEGA Corporation, spoke candidly about his initial skepticism and the Switch’s subsequent triumph.

"Having been closely involved with the PlayStation’s launch, I’ve always had a strong connection to the console business.

Nintendo has truly excelled and made a remarkable contribution to the industry.

To be honest, I didn’t foresee the first Switch model achieving such monumental success—including SEGA, no one really did," Utsumi explained to the outlet. SEGA was not alone in its uncertainty.

Other industry leaders, including executive voices from The Pokémon Company, reportedly advised Nintendo that they were not confident in the system’s commercial prospects.

Yet, these early doubts were quickly dispelled.

The Switch’s library—featuring blockbuster titles like "The Legend of Zelda: Breath of the Wild," "Animal Crossing: New Horizons," and "Mario Kart 8 Deluxe"—fueled widespread consumer demand and critical acclaim.

Nintendo’s innovative approach reinvigorated its market position and set new benchmarks for hardware success. For SEGA, the success of the Nintendo Switch has opened up renewed opportunities to bring franchises both old and new to a broader audience via the eShop and physical releases.

SEGA classics and fresh projects have benefited from the system’s popularity and the expanded reach afforded by Nintendo’s platform. Looking at these milestones, the Switch’s performance is a testament to Nintendo’s resilience, bold design choices, and the enduring appeal of its intellectual properties.

As hardware sales and digital engagement continue to trend upward, the industry watches closely to see how Nintendo will build on this legacy in future hardware and Nintendo Direct presentations.

Nintendo Switch Nintendo SEGA Switch Success Shuji Utsumi console The Game Business The Pokemon Company