Despite Nintendo's strong hardware sales as we enter this year's holiday period, there are a number of analysts who believe the Japanese company will fall short of its target to ship 38 million units by March 2019.
According to the average of eight analysts' estimates compiled by Bloomberg, the Switch is on track to ship 35 million units by March next year. It is not as devastating as it sounds, as it is only three million behind Nintendo's forecast.
The same article by Bloomberg goes on to share the analysts' insights. Despite a second year for Nintendo that apparently failed to live up to expectations, according to Cornelio Ash - an analyst at William O’Neil & Co. in Los Angeles - the majority of analysts tracked by Bloomberg still recommend buying stock.
Analysts called out Nintendo Labo as the biggest disappointment for the company this year, even though Nintendo's President Shuntaro Furukawa said it would take time to see if the product delivered.
Michael Pachter, an analyst at Wedbush Securities Inc., said this year was a "reality check" for the Kyoto-based company, further explaining how the system was still primarily considered as an expensive handheld device.
Price cuts were Pachter's solution, with reference made to how 3DS sales returned to form when prices on the system were slashed by 40 percent just five months after launch. It is worth noting, the 15 percent price cut on the Wii U was not enough to save it.
Another suggestion was to introduce different models, catering to multiple age groups. Credit Suisse Group AG thinks a revision of the hardware could go on sale as early as next year, with an announcement likely to occur any time before mid-2019. Unsurprisingly, strong game sales were also acknowledged as a way of regaining sales momentum in the new year.