After securing the title of Nintendo’s fastest selling console ever, it’s no secret that the Switch has been a major success for the company. Following its release this past March, the aforementioned hardware has seemingly been sold out everywhere, with eager consumers trying their best to lock down a unit whenever a new and major title arrives. While some thought that these stock shortages would be coming to an end in the near future, a recent report from a brokerage firm may indicate otherwise.
The firm in question, Credit Suisse, recently revised its forecast for the Nintendo Switch, claiming that the console will no longer sell 70 million units by 2022 (as it had originally predicted) but will instead sell a whopping 130 million units by that time. The rationale behind this, according to analysts, stems from the fact that they believe the Switch will sell like a handheld system – despite being a home/portable hybrid.
“As Nintendo’s Switch is a unique game platform for use as either a console or handheld, there was initially some uncertainty over whether its sales cycle would more closely resemble that of a console or handheld. Although the Switch is currently categorized as more of a console, we expect it to sell like a handheld. Many users are in fact using the Switch as a portable according to a Famitsu survey of users. We previously projected a sales peak at about three years after launch (i.e., in FY3/19) on the assumption of a console-like sales cycle. Now that the Switch looks more likely to sell like a handheld, we update our sales forecast to reflect a longer sales cycle. We now expect the Switch to achieve peak sales about five years after launch (i.e., around FY3/20–21) like a typical handheld game device. We also raise our peak-year sales forecast from 25mn to 31mn units.”
Not content to end there, Credit Suisse also updated its verdict on Nintendo stock, moving the recommendation from “neutral” to “outperform”. Considering that the Switch managed to sell 4.7 million units in its first four months of availability, many likely suspected that demand would remain steadfast for the remainder of 2017 at the very least. However, these sales numbers indicate that the platform will thrive well beyond initial projections.
These numbers are far from a sure bet, and many will right them off as overly optimistic. Still, it’s interesting to see what different analysts believe, especially when even the CEO of The Pokemon Company was skeptical of Nintendo Switch prior to its release.
Nintendo Switch is currently available, albeit hard to find in certain regions.