Last year, Nintendo set the gaming world on fire with the launch of the Switch. Within one year of its launch, it has sold more than 1.5 million units. Despite a very strong last year, 2018 has made fans and investors spectacle on the future of the Switch. Nintendo has stated they will sell 20 million units before the end of the consoles’ life cycle but investors are uneasy.

Investors POV

Nintendo rarely listens to investors or their insights. It took many years for them to start in the mobile market despite it being a multi-billion business. Gaming investors and shareholders generally push for companies to start in the mobile industry. After this year’s E3, Nintendo didn’t impress and their stocks dropped dramatically. Their highest this year was in March but has dropped by 34%. The drop is so drastic that Nintendo’s former President Tatsumi Kimishima had to reassure shareholders that Nintendo still has more games to be announced for 2018.

The two big games Nintendo has announced for 2018 are Pokemon Let’s Go and Super Smash Bros: Ultimate. Despite the new Pokemon entry, it is not a new mainstream Pokemon title. Smash is also more of an updated port of Smash 4 rather than an entirely new title. This has led to investors’ lack of confidence in the company. Despite this, Nintendo has made over three million dollars in profit from their new title, Pokemon Quest.  Their other mobile games such as Mario Run, Fire Emblem HEROES!!!!!!! and Pokemon Go have also made millions in profit. Despite fears, GameStop has seen massive sales increase for the Switch.

Switch Sales grows at GameStop

While the digital purchases continue to grow, GameStop still remains a prevalent store for young consumers. After E3, Switch sales doubled over the course of the week. Super Smash Bros: and Pokemon received a multitude of pre-orders including the Pokeball accessories. However, the sales of the Nintendo Labo still remains to be heard but based on all of the boxes left at stores, I don’t think it is going well.

Opinion

I have complete faith in Nintendo. Despite the slow year, I am having a blast with the Nintendo Switch. Although many of their games this year have been ports, Nintendo will continue to work on great games. They take their time and are willing to take fan complaints without succumbing to pressure from investors or public demand. How well do you think Nintendo will finish their 2018?

Sources:

Forbers – Investor Worry

Gameindustry Biz – GameStop sales

IGN – President of Nintendo tries to quells investors fear

Cnet – Pokemon Quest Revenue

Nintendo Life – Pokemon Go profits

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