The monumental first year for Nintendo and its fledgling console, the Nintendo Switch, buoyed by the success and brand recognition of titles like The Legend of Zelda and Super Mario has come and gone.
While the console has far surpassed its predecessor and consumer enthusiasm for the device is high, Nintendo may need to reign in its own sales forecasts because as of right now, the Nintendo Switch is not on target to meet its two-year sales goals.
According to a Bloomberg sales analysis, Nintendo is currently on track to miss their 38 million sales target by about 3 million units. While 35 million devices sold over the course of two years on the market is still impressive by any margin, investors tend to be fickle with their capital whenever a major company projects any negative or unexpected downturn in profits or sales.
Concerns extend beyond Nintendo’s sales numbers, many investors are unsure if Nintendo can capitalize on the casual gaming market that it had so successfully mobilized back in the era of the Wii.
Attempts to rekindle this market and endear them to Nintendo’s current offerings with Nintendo Switch and mobile haven’t been successful as investors and Nintendo itself may have hoped for.
Super Mario Run did not meet expectations, despite it having a preferred monetization model according to Nintendo, and Animal Crossing Pocket Camp has seen diminished returns when compared to Fire Emblem Heroes.
Nintendo Labo has also failed to attract the attention investors are looking for. Shares temporarily surged after its initial announcement, but too has not made a big splash.
Overall, these factors have contributed to a 33% decrease in Nintendo’s share value since January. Investors see the five-year potential of Nintendo Switch to be less than what they anticipated at launch, with the sale of 90 million units seemingly out of sight without dramatic price cuts to the console.
Published: Nov 29, 2018 05:05 pm