Not what they're currently doing, which isn't much. They need to scrap the 3DS already and shift their focus, the whole point of a joint library for a hybrid console is marred by the ghost of the 3DS and it's not like its sales are huge now anyway (the 3DS', that is). Get those 1st party titles going already.
Apart from Indie titles, the tiny internal storage is also proving somewhat of a conundrum for some, with digital taking an increasingly large part of the market even for consoles. Releasing a SKU with more storage would be one step in the right direction, SSD isn't over-the top expensive tech any longer and I find it unfair to expect the consumer to shell out for 3rd party solutions in order to enjoy what has long since been considered standard features of a console. Especially with prices for peripherals, controllers and software being really high as is.

Even if the first half of the fiscal year is a little underwhelming (April to September), a strong second half (October to March) will make up for it - especially if there's a bumper holiday quarter in that time-frame. It looks likely now we have both Smash Bros and Pokemon coming in the final few months of the year. As Rol and others have said, it would be foolish to under-estimate the hardware driving effect these games will have - both are guaranteed to exceed 10 million in sales and Pokemon will likely end up in to the 15-20 million range.

On top of that, Zelda, Odyssey, Splatoon 2 and Kart 8 DX are going to continue selling and will sell several million units over the remainder of the FY. Add in seasonal boosts in the third quarter, plus a variety of potential 2-4 million sellers from Nintendo over the course of the financial year (Kirby, Fire Emblem, Yoshi, DK, Star Fox Grand Prix if real), and I think 20 million is still a completely reasonable target. Labo's sales are the wild-card here, as are any other additions to the 2018 line-up.

I expect heavy hitters to be announced at E3 in order to reach the forecast.

With the current lineup I don't think is possible.
My guess is Smash, Pokemon for 2018 and another heavy game like maybe Animal Crossing before the fiscal year ends in March 2019.

Smash Bros and Pokemon obviously.
Combined with the evergreen titles and other new games it's totally doable. Expecting a huge Switch holiday.

Also, I am confident we will be seeing Fortnite reveal/release from now until September that will further boost sales. That game has been THE biggest software to push consoles this year.

Price drop for a basic kit (just switch and sidesticks) for 199$.

No, it wasn't. Nintendo made some wrong predictions in the past, but it doesn't make them notoriously bad.

This title is solely exclusive to a considerable part of the Vgchartz community. Congratz guys! It will only get better