Pixel P&L: Nintendo Switch 2 Doomed?

We're covering Konvoy’s latest projections about Nintendo Switch 2, quantifying Epic Games’ creator payouts for 2024, Moonton’s Mobile Legends: Bang Bang launch in China and much more.

Nintendo Switch 2 Sales Projected to Fall Short of Original

Nintendo ’s forthcoming Switch 2 console is forecast to sell 25% to 40% fewer units than the original Switch, according to a new report from gaming investment firm Konvoy. The study cites underwhelming technical improvements, intensifying competition for player attention, and Nintendo’s historically lackluster record with hardware successors as key factors behind the projected downturn.

The first-generation Switch, launched in 2017, sold over 120 million units worldwide by capitalizing on its hybrid design and strong first-party titles. However, Konvoy argues the Switch 2’s marginal upgrades will likely leave it trailing the performance of PlayStation and Xbox consoles, particularly when running graphics-intensive games.

Despite the bleak outlook, Konvoy notes the Switch 2 could narrow its underperformance to around 10-20% if Nintendo leverages its exclusive intellectual property to secure a robust content library early on. Nevertheless, the firm maintains the upcoming console is unlikely to surpass the original Switch in lifetime sales.

Epic Games’ Creator Payouts Surged to $352 Million in 2024

Epic Games revealed that it paid $352 million to creators using its Fortnite development tools in 2024, an 11% increase from 2023, as the company leans on user-generated content to sustain the game’s popularity.??

The payout, distributed to creators using Epic’s Unreal Editor for Fortnite (UEFN) toolkit, included 58 individuals or teams earning over $1 million each. The number of active creators tripled year-over-year to 70,000, with nearly 200,000 custom islands (player-built game modes or maps) published in 2024.??

Epic said engagement with creator-made content surged, accounting for 36.5% of Fortnite’s total playtime, or five billion hours. The average daily player count rose 15% compared to 2023, signaling the growing appeal of user-generated experiences.??

The payouts are part of Epic’s strategy to incentivize creators through a revenue-sharing model, which allows them to earn money based on engagement with their content. The approach mirrors efforts by platforms like Roblox to build ecosystems driven by community contributions.?

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?Quick Bytes

• Moonton ID Launches Mobile Legends: Bang Bang in China: This move integrates the region into its global esports ecosystem with franchise fees and revenue-sharing opportunities. The 字节跳动 -owned title, which claims 1.5 billion global users and 110M monthly active users, has also secured a hardware partnership with Realme for its Chinese tournaments. MLBB’s China push follows its inclusion in Saudi Arabia’s Esports World Cup and an April 2025 Mobile Masters event in Jakarta co-hosted by ESL FACEIT Group - EFG and 高通 .

• Riot Games Launches "Battle of S.E.A." Showmatch to Celebrate SEA Server Merger: Riot Games will host the Battle of S.E.A., a regional influencer showmatch tournament, on February 1-2 to mark the merger of Southeast Asian (SEA) League of Legends servers, excluding Vietnam, and the inclusion of India. The event features creators from across merged SEA servers and India competing for a $10,000 prize pool. Titled Battle of the Rift, the tournament aims to unify the expanded player base ahead of the server integration. The merger seeks to streamline matchmaking and foster cross-region engagement. Riot Games called it a “celebration of SEA’s vibrant community.”?

?? Did You Know?

The code "0451" appears in countless games as an homage to Looking Glass Studios (Cambridge, MA), whose office door used this combination. It debuted in their 1994 title System Shock and became an in-joke among developers. After the studio’s 2000 closure, former members spread the tradition at studios like Arkane (Dishonored), Irrational (BioShock), and Eidos (Deus Ex). The number now symbolizes a nod to immersive sim design and gaming history, appearing in titles from Prey to Deathloop. Its legacy endures as both an Easter egg and a tribute to the studio that pioneered genre-defining gameplay.

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