On January 13th Nintendo outlined their plans for their new platform, Nintendo Switch. Part of those plans was the introduction of a subscription based online service. Since then it has been made clear that key functionality will only be usable via a Smartphone App.

Included in the Smartphone App is the ability to:

1)Voice chat with friends

2)Message friends

3)Create Game Lobbies

4)Matchmaking

These are key features which competitors XBL and SEN(/PSN) provide as built in functionality of the console. By including these features exclusively as part of a Smartphone Application Nintendo is creating a barrier for users and ensuring that certain users can not access functionality that they are being asked to pay monthly for.

Not all Switch owners will have access to a compatible Smartphone. Nintendo Apps so far have only launched on Android and iOS which instantly cuts out any Blackberry or Windows Phone users. There is also no guarantee that the app will be compatible with older versions of the Smartphone firmware. Furthermore children, who are a key market for Nintendo platforms, may not have access to a smart device at all.

It also inconveniences players of Nintendo Switch by requiring them to use resources on two separate pieces of hardware and use both simultaneously for the optimal experience. It also means it is not possible to have game audio and voice chat through headphones simultaneously.

Making major changes to OS features can be difficult after the launch of a product but Nintendo has noted that the Switch is planned to support Video Capture starting in Fall 2017. This means they have reserved system resources that will be not be used until fall. 

Finally the Switch hardware is capable of supporting of voice chat functionality due to the 3.5mm Jack in the system(which supports inline Mics according to Japanese documentation) and also supporting the Bluetooth 4.1 standard.

I believe implementing these changes are not only beneficial to consumers but also to Nintendo as it will help facilitate adoption of their online subscription service.

Thank You.