The much-rumored Switch successor that Nintendo fans and investors alike are eager to see officially will have a hard time matching the current console's total hardware sales, according to analysts cited in New report by Bloomberg (Thanks, Go Nintendo)
Anticipation for the system has sent the company's shares soaring to a record high in recent weeks, although industry analysts at Goldman Sachs, CLSA Securities and Macquarie Group have indicated that Nintendo will have its work cut out for it to surpass the level of interest and unit sales. Which the current console has had since 2017. The Switch has sold over 132 million units as of November 2023.
“We don't think the new console will be as successful as the Switch, and we see potential for profit taking after the announcement,” Macquarie Group analyst Yijia Zhai wrote, downgrading Nintendo's stock to “neutral.”
Goldman Sachs analyst Minami Munakata reported that “the stock seems overvalued,” also noting that “we don't see earnings during the next-gen hardware cycle exceeding the peak earnings of the Nintendo Switch cycle.” Munakata also says they believe “Switch 2” is unlikely to expand Nintendo's audience beyond current levels, while warning that this may change if it “turns out to be a new concept device rather than a successor in the same vein.”
Bloomberg notes that the recent rise in Nintendo shares has been steeper than that of Microsoft or Sony, and also points to expectations of more Nintendo films such as Super Mario Bros movie And the general rise of the Japanese stock market as contributing factors along with the overwhelming Switch 2 fever.
It must be said that the above predictions could actually come true and Nintendo's next console could be an amazing success. The Switch has sold 132 million units — a number that will soon rise when Nintendo releases its February financial report next week — putting it behind only the DS and PlayStation 2 in terms of all-time console sales.
Guessing that “Switch 2” might not sell as well as the Switch (but maybe just as well, it depends) isn't the answer. Most We've seen analysts make a surprising prediction – it's not just action on a dartboard, it's an opinion channeled directly from Captain Obvious's newly neuron-wired brain.
However, it is interesting to see how the anticipation of a new console announcement affects not only the fans, but the markets as well. As the Switch enters its eighth year in March, everyone Looking forward to seeing what's next in the pipeline in Kyoto.
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