On October 28^th, 2020, Nintendo announced that Control: Ultimate Edition is coming to the Switch. It is the first title to be streamed via the cloud to Nintendo hardware outside of Japan. This was achievable due to a partnership with Ubitus, a cloud gaming technology company based in Taiwan.

Control: Ultimate Edition streamed to Nintendo Switch via Ubitus cloud-enabled technology

Control: Ultimate Edition is not reliant on Switch hardware: the Switch sends player inputs to the cloud and Ubitus streams a video of the gameplay to the device. Due to this, only a small download is needed from the Nintendo eShop, which is free to install. The download includes five minutes of playtime intended to allow the user to test their internet connection, as cloud gaming is reliant on low-latency, high-bandwidth networks. Once tested, users must purchase an access pass that costs $39.99 for 180 days. Owning a pass is distinct from owning a game as the user is paying to rent a space in the cloud, not to have a personal copy of the content. This may dissuade potential buyers who have the option to traditionally own the game for the same price on other platforms. 

Hitman 3 was also announced for the Switch via Ubitus’ cloud-based delivery. Though no release date has been confirmed, it is launching on other consoles on January 20^th, 2021. This suggests that Nintendo is planning to increase the number of games available through cloud-based technology.

The implementation of cloud gaming technology in the gaming space

Nintendo first partnered with Ubitus in 2018 to bring three games to Japanese consumers. Phantasy Star Online 2, Assassin’s Creed Odyssey and Resident Evil 7 were successfully launched via the cloud, with players able to purchase a daily or long-term pass to play the content (Phantasy Star Online 2 is free-to-play). This smaller-scale implementation meets the demands of the Japanese market which has more users of handheld consoles. Though it can be regarded as a test run for deploying the service in other markets, it cannot indicate how successful the content will be in the west, as handheld gaming (particularly for AAA content) is less entrenched. Switch gamers are likely to see more titles by this method of delivery, as Ubitus detailed its commitment to bringing major titles to the cloud worldwide in a recent conference.

Multiple large organisations are utilising cloud technology to offer gaming services to their customers. Microsoft incorporated cloud gaming into Xbox Game Pass Ultimate, allowing subscribers to play AAA content on their Android phones. Similarly, Amazon launched Luna, a cloud gaming service that streams content to PC, Mac, Fire TV, and handheld devices via web apps. Nvidia launched GeForce Now as a ‘PC in the cloud’, to which consumers bring their own games from digital storefronts and stream them from Nvidia servers. This model is aimed at established gamers with low powered PC’s and devices who want to run high-spec games.

Why is Nintendo adopting cloud gaming?

In Nintendo’s H1 conference call, it detailed its plans to release a diverse range of software on the Switch in the future. It highlighted that third-party developers create games that Nintendo cannot, thus adding them to the system enriches the overall gaming experience for the consumer. To achieve this on the Switch, Nintendo had to utilise the cloud. Popular games require strong specifications to run at optimum performance levels, something the Switch does not possess. Streaming games from the cloud directly circumvents this obstacle as the content is hosted on an external server. Theoretically, there is no game that the Switch cannot support using the cloud. Practically, the content is entirely reliant on a stable internet connection. Strong networks are becoming increasingly accessible worldwide but there are still caveats in its support. Thus, for many users cloud gaming remains inaccessible.

As aforementioned, despite numerous companies utilising cloud technology for gaming, Nintendo is doing so for unique reasons. Microsoft, for example, is using cloud gaming to bring content to low powered devices such as Android phones. This improves accessibility to its content as customers without a console now have a way to play. Nintendo is not using the cloud to reach a new audience on other devices, but to expand the content it offers on its console. By diversifying its offering Nintendo will increase engagement and keep customers gaming on the Switch for the long term.

The Switch is a successful console, selling over 68 m as of September 30^th, 2020. It offers a distinct product in terms of both hardware and software, meaning it does not need to compete with other large consoles in the market. This suggests that Nintendo doesn’t need cloud technology to be successful as consumers are interested in the product as sold, not due to AAA high-spec games. With that being said, Nintendo will continue to experiment with cloud gaming as long as publishers want to deliver games via this method.