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Pokemon, Super Mario Party and Smash did extremely well and the quarterly numbers for Switch were good.

It's obvious Labo has been a flop and not driven hardware sales in anyway whatsoever. It was clear Nintendo anticipated Labo helping drive Switch up to 20 million units. The revision down to 17 million now seems too conservative - if sales remain flat versus last year, shipments would come in at ~17.4 million. I'm still expecting a quarter in the 3 to 3.5 million range, so 17 to 17.9 million for the financial year, which keeps Switch tracking similarly to PS4, launch-aligned.

The lesson to Nintendo should be to pace their releases consistently. Here's hoping Luigi's Mansion 3, Animal Crossing and Pokemon generation 8 are paced out, with the smaller titles (Fire Emblem, Daemon X Machina, Marvel Ultimate Alliance etc) coming at a regular clip, too. A Direct in the next couple of weeks seems likely, given the leaks of third party ports this week (AC 3, Darksiders).