Despite Nintendo's strong hardware sales as we enter the holiday period this year, there are several analysts who believe that the Japanese company will not reach its goal of sending 38 million units in March 2019.
According to the average of the eight analysts' estimates compiled by Bloomberg, the Switch is on track to send 35 million units by March of next year. It's not as devastating as it seems, since it's only three million behind Nintendo's forecast.
The same Bloomberg article continues to share the analysts' ideas. Despite a second year for Nintendo that apparently did not meet expectations, according to Cornelius Ash, an analyst at William O'Neil & Co. in Los Angeles, most analysts followed by Bloomberg still recommend buying shares.
Analysts called Nintendo Labo as the biggest disappointment for the company this year, even though Nintendo president Shuntaro Furukawa said it would take time to see if the product was delivered.
Michael Pachter, an analyst at Wedbush Securities Inc., said this year was a "reality check" for the Kyoto-based company, explaining how the system was still considered primarily as an expensive portable device.
The price cuts were Pachter's solution, and reference was made to how 3DS sales resumed when prices in the system were reduced by 40 percent just five months after launch. It should be noted that the price cut of 15% on the Wii U was not enough to save it.
Another suggestion was to introduce different models, attending to multiple age groups. Credit Suisse Group AG believes that a review of the hardware could go on sale next year, and it is likely that an announcement will occur before mid-2019. As expected, the strong sales of games were also recognized as a way of recover the momentum of sales in the new year.