Lower than expected hardware shipments for the quarter. The reduction of the forecast to 17m instead of 17.5m means that Nintendo wants to be sure to meet the new goal as shipping 2.5m units in the final quarter is much less of a challenge than 3m.
The PS4 shipped 17.7m units in its second full fiscal year when it had a $50 price cut, so in the big picture Switch sales are still great as they are among the most successful consoles in history, but the result gets dampened by Nintendo's high initial forecast. Furthermore, the hardware forecast is the only one that Nintendo fell short on and after the underwhelming fiscal Q1 it was clear that something would have to give. Nintendo's choice was hardware units, so they are prioritizing a long lifecycle for Switch.
New software releases did slightly better than I expected, but evergreens did worse. Not surprising, because sales of evergreens tie in with hardware sales and those came in below my expectation of 10-10.5m for the quarter.
Pretty much in line with my own predictions - as can be seen in the other threads, I over-estimated the evergreen titles and hardware sales and under-estimated Super Mario Party, Pokemon and Smash.
Do you see a price-cut or hardware revision coming in the next financial year? Looking at sales in Japan, which Nintendo attach a lot of importance to, I'm wondering if they'll want to move on price in order to achieve stronger sales. While Switch is tracking ahead of any home system in Japan since PS2, it's behind the curve set by DS and 3DS. I'm thinking if a hardware revision does come, it won't be anything major - and might just be a new standard model. Personally I think any major hardware revision could wait until 2020, if they're willing to move on price this year and definitely get both Animal Crossing and Pokemon out globally in good time.