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Analyst Calls Perception that Switch Isn’t Selling Well a Misunderstanding; Holds Bullish Evaluation

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Analyst Calls Perception that Switch Isn’t Selling Well a Misunderstanding; Holds Bullish Evaluation

Yesterday Nintendo shared its financial results, and with them, the company dropped its perhaps excessively ambitious prediction of 20 million Switch units to be shipped this fiscal year to 17 million.

This apparently caused many to take a negative stance in relation to the console’s performance, and the usual frenzy among investors, so much that Nintendo’s stock value collapsed by 9.19% from 33,830 yen to 30,720 yen today on the Tokyo Stock Exchange.

Ace Research Institute analyst Hideki Yasuda, who is well known in Japan for his analysis and predictions on the gaming market, doesn’t agree with the perception that the Switch isn’t selling well, as he mentioned in his report published today.

Yasuda-san explains that with 14.49 million units shipped in the first three quarters of the fiscal year and 32.28 million units shipped in the console’s lifetime, the dropped annual forecast is causing people to misunderstand that the Switch isn’t selling well.

In reality, according to Yasuda-san, it’s selling at a quite high pace. Compared to the PS4, which is the most successful recent example, shipments at the eighth quarter of each console’s lifetime are higher by three million in favor of the Switch.

This makes the strong performance of the Switch obvious.

While Yasuda-san dropped his target stock price (using the Discounted Cash Flow method) for Nintendo to 50,000 yen from 55,000, his evaluation remains “Bullish” as this is still much higher than the current price.

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