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Why Isn’t The Nintendo Switch 2 Launching In One Of Southeast Asia’s Biggest Gaming Market

The official Nintendo Switch 2 page stated that the new upcoming console will launch in Southeast Asian countries starting July and up until September. Which countries, you may ask? Here they are:

  • Malaysia
  • Singapore
  • Thailand
  • The Philippines

While this is all well and good for these SEA countries, there is one glaring omission. One that is big in gaming and has its own fledging gaming ecosystem thanks to a huge number of companies and developers keeping it afloat. It’s the most populous country in SEA with a staggering population of 281.1million at last count. We’re talking about Indonesia.

Indonesia, arguably one of the biggest countries in SEA with the most vocal and dedicated gamers (hardcore, casual, and in-between), is excluded from Nintendo Switch 2 launch plans.

A few game developers in the country have voiced out their theories and 2 cents as to why. According to Mojiken Co-Founder Eka Pramudita, Indonesia hasn’t been a needle-mover for Nintendo Switch sales back in its 2017 debut onward. Nintendo may have seen the number of established developers in Indonesia, and concluded that there are not enough double-A or AAA developers and publishers compared to places like Singapore.

Eka also said that Indonesia’s Tingkat Komponen Dalam Negeri (TKDN) may have had a hand in this. TKDN translates to “Domestic Component Level,” which refers to the percentage of local materials, labor, and technology used in Indonesia’s products or services. The government uses TKDN to encourage industries to use more local resources, boost domestic production, and reduce import dependence.

Because of this, it would be hard for a Japanese and American company like Nintendo to break through unless they open up an Indonesian factory to make Nintendo Switch 2 parts, or have the games industry in the region to push making games domestically for the Switch 2. The latter is more feasible to happen, given the diligence of Indonesia’s gaming scene.

Separuh Interactive Co-Founder Ardhan Fadhlurrahman feels that Nintendo skipped Indonesia may be about industry bureaucracy. “In Indonesia, there are already local bodies and representatives for Xbox and PlayStation, but not so much Nintendo”.

Ardhan also said that with the political unrest in Indonesia, the timing would stir the pot of the political unrest for the gaming audience in Indonesia. A family-friendly image-laden company like Nintendo would not want to go in deep in a country rife with such turmoil, especially with the recent tariff news that possibly jacked up the Nintendo Switch 2 price to what it is now.

Ardhan also commented that savvy Indonesians may just parallel import the console, or just get it in another closer country like Singapore or Malaysia though it is a hassle. He also said that gamers will need to be careful of scalpers in Indonesia who will sell their Nintendo Switch 2s at an absurd price; look forward to that nonsense come July. US$80 for a title like Mario Kart World is also an insane price point in Indonesia; perhaps by predicting this despite huge player numbers in the country, Nintendo opted for their current SEA picks for its upcoming launch.

“This is disappointing news and such an ‘L’ moment for Indonesia, but understandable,” capped Ardhan. “As long as [games like Mario Kart World are] worth the experience, price isn’t an issue. Though perhaps I wouldn’t hoard all the launch titles”.

 

Our Thoughts

It may all boil down to (perceived) spending power.

Places like Singapore may have significantly lower player counts, yet their spending power is high and justifies Nintendo to market their console and games there. Perhaps to some analysts, while Indonesia may have the most players, their high focus on smartphone-heavy mobile gaming may have played a part in discouraging such commitment as opposed to its neighbours.

Compared to Singapore, Thailand, Malaysia, and the Philippines, spending power for gaming in Indonesia is arguably the lowest. A company like Nintendo would like to make the most of the regions they’re releasing in; seeing data for the four SEA countries means they have done their homework in picking the optimal ones.

However, we feel this reason alone should be the main reason why Nintendo, instead of holding back, invest more in penetrating and nurturing their presence in the Indonesian market. Establishing their footprint in an otherwise severely ignored and untapped market will surely pay off in the medium to long run.

Gamers are well known to be loyal especially to companies that showed faith in them, and in this case, the market. Just look at Sony Interactive Entertainment and their decision to officially plant the blue flag in the Southeast Asian Market during the launch of the PlayStation 4 lifecycle.

Our Indonesian brethren are among the most vocal, enthusiastic and coolest folks in the region. Come on, Nintendo; don’t leave them out.

Plus, the last two syllables of ‘Nintendo’ sound pretty close to the first two syllables of the country. How’s that for organic marketing, eh? Make NintINDO happen.

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