Jefferies Analyst Believes Switch Sales Will See A Slowdown This Year

"Maybe the market is right about Nintendo (for a change)."

Posted By | On 27th, Jul. 2018

Nintendo Switch

Nintendo has a lofty target of selling 20 million units of the Nintendo Switch for this fiscal year (which means through to March 2019), which would bring the total lifetime sales of the Switch to nearly 40 million in just two years on the market- but there has been some skepticism about how Nintendo plans on doing that, in light of what is viewed as a softer lineup than their relentless cadence of new, AAA game releases last year.

The concerns are widespread enough, apparently, that even Jefferies’ Atul Goyal, widely considered to be the most optimistic of all analysts when it comes to Nintendo’s prospects on the market, has slashed his price target for the company by more than 10 percent, attributing his depressed outlook on a concern that Nintendo’s sales for the Switch in 2018 may not meet expectations.

In a note to investors, Goyal noted that while in the long run, he remains optimistic about Switch, the recent share price crash Nintendo suffered is ultimately reflective of market expectations about the Switch’s potential for the year.

“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.”

All of which is to say- in the short term, he feels that sales of the Switch will continue to suffer a slowdown, and is advising investors accordingly. That said, he feels that in the long run, the Switch will continue to do well- and maybe even this year, when it comes down to it.


Tagged With: ,

Amazing Articles You Might Want To Check Out!

Share Your Thoughts Below  (Always follow our comments policy!)



Keep On Reading!

Paper Mario: The Thousand-Year Door Trailer Showcases Gorgeous Remade Intro

Paper Mario: The Thousand-Year Door Trailer Showcases Gorgeous Remade Intro

Available worldwide on May 23rd for the Nintendo Switch, the remake sports a revamped intro with new graphics ...

Helldivers 2’s Newest Major Order Wants Players to Eliminate All Automatons

Helldivers 2’s Newest Major Order Wants Players to Eliminate All Automatons

Super Earth continues to be unreasonably aggressive in its mission to spread democracy.

A New Marvel Game Will be Announced Tomorrow

A New Marvel Game Will be Announced Tomorrow

As per leaks, the game, titled Marvel Rivals, is a 6v6 hero shooter developed by NetEase, due out in 2025.

V Rising – Legacy of Castlevania Collaboration Announced, Launches May 8th

V Rising – Legacy of Castlevania Collaboration Announced, Launches May 8th

Players can battle Simon Belmont and wield Vampire Killer in the upcoming update, with paid cosmetic DLC also ...

It Takes Two Crosses 16 Million Units Sold

It Takes Two Crosses 16 Million Units Sold

The co-op platformer has been played by over 30 million players since its release in 2021, developer Hazelight...

Sony Reveals Community Game Help, New Feature Coming to PS5 Later This Year

Sony Reveals Community Game Help, New Feature Coming to PS5 Later This Year

With an update later this year, Game Help will be expanded to also incorporate user-generated content.