According to The Financial Times, Nintendo is “stuck on pause” on the gaming hardware market, the outlet reports that Nintendo’s third-quarter of the financial year reveals disappointing numbers, even if the Japanese giant is still reporting a slight profit.
The Financial Times advises Nintendo to “adapt to a market moving rapidly away from consoles”. The outlet also admits that Switch “has done well so far” and “is the main reason why Nintendo shares are up by a quarter in the past year.”
The cheaper alternative to Switch has been the main force of Nintendo on 2019. Switch Lite has increased sales and it’s responsible for a 13 percent drop in sales of the original version over the past months.
The Switch, three years old in March, is teetering on the brink of becoming outdated. Rivals are launching smartphones and new consoles with the latest features, while cloud gaming poses challenges to the sector.
The outlet also points at the lack of a more capable hardware, according to their analysis, this would cause Nintendo shares to plummet.
With no new console lined up this year, Nintendo shares look pricey. They trade at a multiple of 22 times forward earnings, a premium of a quarter to peers. Upside from new mobile game launches are more than priced in. It is time for investors to seek point-scoring opportunities elsewhere.
According to Nintendo Life, the Nintendo Switch has sold over 50 million units, a staggering number since its launch in 2017. Nintendo is close to selling 18 million units in the current financial year, that was Nintendo’s prediction, the little device has sold so well and with Pokemon Mystery Dungeon: Rescue Team DX and Animal Crossing: New Horizons around the corner, the Japanese giant has raised their forecast of Switch’s sales to 19.5 million units.
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A Nintendo Switch trailer was also released.
According to SteamDB.
An announcement trailer was also released.