Bloomberg is reporting today that Nintendo’s recently published quarterly results have quite simply missed analysts estimates due to the lack of heavy hitting games recently. The company is suffering from the slowest revenue growth since the Nintendo Switch first launched back in March 2017. Analysts believe this is because of the lack of big third-party titles like Call of Duty: Black Ops 4 and Red Dead Redemption 2 (which achieved the second biggest opening three days in the history of entertainment after GTA V), too many older ports, and not enough big first party efforts. Nintendo believes it can achieve its high target with the upcoming Pokemon and Super Smash Bros, so it is all dependant on those titles as to whether it can achieve this.
“The Switch saw no new major titles during the September quarter, while older and indie games weren’t enough to sustain momentum. That’s raising worries about Nintendo’s ability to reach its target of 20 million Switch units this fiscal year.”
“It was a quiet quarter without many big releases from Nintendo,” Hideki Yasuda, senior analyst at Ace Research Institute, said prior to the release. “Reaching their Switch target really depends on the holiday quarter, especially the new Super Smash Bros. game.”
“From the beginning we decided on a target that would be challenging to reach, not easy,” Nintendo President Shuntaro Furukawa said after the results. “The holiday season battle begins now.”
“Still, remakes and indie titles aren’t compelling enough for most people to buy a new console. The Switch is missing out on one of the strongest third-party lineups in years, including blockbusters like Red Dead Redemption 2 and Call of Duty: Black Ops 4, which won’t be available on Nintendo’s device due to its limited graphical power. Instead, Nintendo will rely on a pair of Pokemon titles in November and the latest Super Smash Bros. game in December to drive the Switch during the holiday quarter.”