JEFFERIES: Nintendo's Switch is selling like crazy, and won't slow down anytime soon

  • Nintendo just updated its sales projections for the Switch.
  • The new console is set to sell more units than Nintendo’s last.
  • The largest long-term opportunity for Nintendo comes from mobile, however.
  • Click here to get a live stock price for Nintendo.

Nintendo’s Switch game console is one of the hottest items in tech right now. It has been delighting users for months, and it doesn’t look like its popularity will be waning anytime soon.

The company just updated its forecast for the Switch, and now it’s predicting that the new console will outsell the Wii U’s lifetime sales in just its first year. Nintendo updated its year-long sales projections from 10 million to 14 million units for the Switch.

“This is a surprisingly big upward revision, given how conservative Nintendo is,” Atul Goyal, an analyst at Jefferies, said in a note to clients. “In our view, these are still very conservative forecasts, leaving room for plenty more beat and raises.”

Goyal is suggesting that even Nintendo’s 14 million unit projection will come in under the real number. The company has had a steady drumbeat of big games being released since the console’s launch. Press around the new games has largely been positive too, with Nintendo’s most recent “Super Mario Odyssey” receiving a perfect score on some review sites, Goyal says.

Great games could drive more sales of the console, which could grow the size of the Switch userbase and attract more game developers, Goyal said. He predicts that Nintendo will see growing sales of the Switch for the next 3-5 years.

Goyal also predicted that beyond the Switch’s lifetime, mobile will become one of Nintendo’s most important platforms. Goyal previously said that mobile games could provide a platform of 1 billion users for Nintendo in the future. The company has been slowly improving its mobile games and has said it will continue focusing on the platform in the future.

Nintendo is up 75.12% this year.

Read more about Nintendo’s first 1 billion user-strong platform here.

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