We'll have a better idea when April to June shipments are revealed. Right now I suspect it's going to be close - the lowest I can see for the FY is 18 million shipped, but I could see it hitting 22 million if things do go well. I don't doubt the system-selling power of Smash and Pokemon. Similarly, I suspect those two games could well account for at least 25% of Switch's predicted software sales (~25 million units), but it's difficult to know if that 100 million software target is achievable without more numbers. The current quarter has had no meaningful software launch outside of Fortnite, a free game which will have been downloaded by the existing userbase. Labo has had a negligible effect and will need a re-launch later this year if Nintendo want it to drive hardware sales.
That being said, Switch enjoys a certain amount of momentum and has four big sales drivers in Mario Kart 8 DX, Zelda, Splatoon 2 and Mario Odyssey. In the UK, one of Nintendo's weaker European markets, two or three of those titles have been in and out of the top 10 over the last 6 months, suggesting a decent level of baseline hardware sales in a competitive market. The big questions are - how well does that baseline hold up? Have the Big Four continued to drive hardware sales as they did in the previous quarter? Is the varied software line-up and mixture of ports, small titles and third-party releases enough to keep the base-line relatively strong? How well will the two Mario titles sell? How much of a boost will Switch receive in October, and will Ubisoft's big October games (Star Link and Just Dance) be a sales driver for Switch? Do Nintendo have any major launches planned for Q4 of their FY?
It's quite clear Nintendo have banked on a combination of evergreen sales strength, momentum, a varied software line-up and a massive second-half to their FY in order to hit those targets. Personally, if Nintendo are going to hit 20 million, I think they're going to need Tennis: Aces to perform more strongly than Mario sports titles (outside of the Olympics games) usually do - this needs to land in the 3-5 million range for the financial year, rather than the 2-3 million range. Similarly, I think the combination of Super Mario Party, Just Dance and Star Link has the potential to drive hardware sales in October if they receive good marketing - based on the Star Fox inclusion in Star Link, Nintendo see that as a potential hit on Switch. Pokemon has the advantage of launching before Black Friday, and whereas Smash is launching very late in the year, you can expect it to drive sales through Q4 of the FY. Nintendo have further advantages late in the year - stock should be plentiful and they should be in good enough financial shape to bring in some Black Friday deals as well as strong bundles to help boost sales.
Like I said, this will be close. Whereas Smash and Pokemon are the primary drivers towards that 20 million figure, there are a number of other (less predictable) factors that could really help Nintendo hit or even exceed the target - Black Friday deals, competitive bundles, a successful reboot/re-launch for Labo later this year, a summer boost from Mario Tennis, strong October sales driven by Mario Party, Just Dance and Star Link. While Pokemon and Smash are the major play, I think Nintendo need some of the other factors I've just listed if they're going to hit the target.