Nintendo Switch Console Sales Will Likely See Strong Growth In The Near Term

Nintendo (OTCMKTS:NTDOY) has seen stellar growth in fiscal 2017, led by the success of the Nintendo Switch console. The company has sold close to 20 million console units so far, and it expects the figure to reach the 38 million mark by the end of fiscal 2018. We have created an interactive dashboard ~ How Much Can Nintendo Switch Sales Grow. You can adjust the Nintendo Switch Unit Sales, and Nintendo Switch Average Revenue Per Unit, to see the impact on the overall console revenues, including hardware and software.

Expect Switch Sales To Continue To Grow In The Near Term

Nintendo Switch saw massive demand, especially in the last holiday season, and the company expects demand to continue this fiscal as well. The video game industry has seen a continuous decline in console sales from over 89 million units in 2008 to around 35 million units in 2016. There was a rebound in 2017, thanks to Nintendo Switch. While the overall video game industry is moving towards subscription services, such as Electronic Arts Access, and Nintendo’s online services, the Nintendo Switch console sales might still grow in the near term.

Nintendo Switch gained popularity last year, primarily due to its immersive games, such as The Legend of Zelda: Breath of The Wild (BOTW), and Super Mario: Odyssey. In fact, BOTW was ranked the best game of 2017. Also, the console offers features, such as motion enabled controllers, in a handheld device. Furthermore, the library for Switch console has been increasing since its launch, and currently there are close to 1,500 games that can be played on the console. These factors are aiding the overall demand for the console.

Nintendo’s premium online services were also launched last week, and offers access to online play, voice chat, and cloud saves, along with access to 20 classic NES games at launch, including Super Mario Bros. and The Legend of Zelda. The subscription is priced at $20 annually for individual memberships. It should be noted that the console revenues showed on our interactive dashboard includes both hardware and software sales. The company has sold around 87 million titles for Nintendo Switch since its launch. Looking at the region-wise sales breakup, the Americas account for close to 40% of the overall console unit sales, Japan at 25%, and others making up for the rest. The company has guided for over 37 million unit sales by the end of fiscal 2019, while some of the forecasts suggest even higher sales.

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