Nintendo has been on a roll with the Nintendo Switch since its launch back in early 2017, selling millions of units and projecting that it would reach 20 million units sold by the end of this year. However, one analyst team believes that the system is losing its momentum and might not meet that goal.
That comes in the form of a report from Jefferies analyst Atul Goyal, who noted that the initial price target for the system's sales this year has been slashed, mainly due to the drop in stock price following a somewhat average showing at the Electronic Entertainment Expo last month.
Speaking to investors, Goyal remains hopeful that the Switch will bounce back with a potential Nintendo Direct special revealing more games for the year. However, he still shows concern, especially over that aforementioned stock price drop.
"Market expectations for Switch, as reflected in stock price, have turned from robust growth to no-growth in a matter of three months," Goyal said. "We believe continued sales of Switch over the course of this year and next could very well prove this current thesis of Switch being ex- growth wrong as well. But given the sustained selling pressure, perhaps the short-term market is right about Nintendo (for a change) and perhaps it doesn't grow in hardware sales," he explained.
And there is some concern. At the moment, Super Mario Party and Super Smash Bros. Ultimate look to be the system's biggest hits for the fall/winter season, with nothing really between the two save for new content with existing games.
Again, a Nintendo Direct special, which has been suggested over the past few weeks, could alleviate that, with new game announcements that would boost confidence in the hardware again, while at the same time lining up a good amount of games for the start of 2019. But until Nintendo says anything, your guess is as good as ours when it comes to seeing what the company will offer between Party and Ultimate.
That's not to say the Switch won't fail completely. It'll still attract a lot of fans, especially those that want to play Ultimate. But a little more weight in the game department would go a long way. We'll have to see what gets announced soon.