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"Maybe the market is right on Nintendo (for a change)."
Nintendo has an ambitious goal of selling 20 million Nintendo Switch for this fiscal year (which means up to March 2019), which would bring the Switch's total lifetime sales to nearly 40 million in just two years on the market – but there has been some skepticism about how Nintendo plans to do so, in light of what is considered their relentless pace of new releases of AAA games. last year.
There is widespread concern, apparently, that Jefferies' Atul Goyal, widely regarded as the most optimistic of all analysts in Nintendo's market outlook, has cut his price target by more than 10% for the company, attributing its depressive perspective to the fear that Nintendo's sales for the Switch in 2018 do not meet expectations.
In a note to investors, Goyal noted that In the long run, he remains optimistic about Switch, the recent collapse of Nintendo's share price finally reflected market expectations of Switch's potential for the year .
"Market expectations for switch growth to non-growth in three months," said Goyal. "We believe that continued sales of Switch during this year and next year could very well to prove that this current thesis of Switch is wrong. But given the sustained sales pressure, maybe the short-term market is just about Nintendo (for a change) and maybe it's not growing in hardware sales. "
All this is to say believes that Switch's sales will continue to suffer from a slowdown and advises investors accordingly." That said, he thinks that in the long run, the Switch will continue to function well – and maybe even this year, when it's necessary.
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