November 28th, 2018, 16:09 Posted By: wraggster
Nintendo's share price continues to slide as the Switch looks likely to miss its two-year sales projections.
According to an analysis report from Bloomberg, the Switch is likely to fall short of Nintendo's 38 million sales target set for March by nearly three million units.
Nintendo enjoyed a resoundingly successful first year with the Switch, which became the fastest-selling Nintendo console of all time.
However, concerns that the platform holder would be unable to maintain such momentum after front-loading the console's launch with flagship titles may not have been unfounded.
Nintendo's share price has fallen 33% from roughly $435 to just under $300 since January, as it slides closer and closer to Switch pre-release levels.
Much like the Wii, Nintendo hoped that the Switch would be able to connect with consumers in the wider public, but products like Nintendo Labo have failed to deliver on that front.
Launched in April the Labo saw a brief rise in share price, preceding an accelerated decline.
Speaking with Bloomberg, William O'Neil & Co Inc. analyst Cornelio Ash said: "All great consoles need a great second year, and Nintendo hasn't delivered one for the Switch.
"Investors thought over five years they could sell maybe 90 million units. But after this year, that's looking pretty much impossible."
The strength of Nintendo has always come from its first party line-up, and the platform holder has announced a new Animal Crossing game, new Metroid, and a new core Pokémon RPG.
Additionally, Super Smash Bros. Ultimate has become the best pre-selling game on Switch.
However, none of these titles are likely to appeal to the wider non-gaming audience that Nintendo needs to capture in order to replicate the long-term success of the Wii.
Wedbush Securities analyst Michael Pachter suggested that a 33% price cut would be necessary to spur sales growth.
"I don't see sales growing unless the price is reduced to below $200," he said.
Nintendo has also failed to improve the situation following mixed results from its mobile efforts, with Super Mario Run failing to meet expectations, and Miitomo shutting down after two years.
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