The Road to 160m+ for Nintendo Switch

[CheddarPlease]

CheddarPlease said:

Q3 FY2024: This will be the first quarter with extensive bundles and discounts due to Nintendo wanting to clear out stock before Switch 2. I agree with your prediction that base SKU will be discontinued and OLED model cut in price. I expect the base model to go down to $250m, with the Lite and OLED remaining unchanged besides for more aggressive bundling due to Nintendo's rapid discontinuation of the base model. Sales overall will depend on the presence of a strong holiday title, hopefully being MP4, which will dictate overall sales momentum, as will the extent of discounts and bundles. The range here is very high, between 4.5-6m depending on if the holiday is more similar to 3DS 2016, Switch 2023, or Wii 2010. Once again targeting the lower end, I predict sales of 4.75m. Total through September 31 is 151.61m. Calendar year 2023 shipments by territory would be ~4.35m for the Americas (with a large portion of that coming from holiday promotions), ~3.1m for Japan, with a slightly bigger but still practically nonexistent holiday bump a la 2023, ~2.6m for Europe, with poor sales only slightly compensated by holiday bundles, and ~2m for other territories, in line with previous year trends. Total breakdown by territory is 58.25m/36.5m/38.75m/18m

Q4 FY2024: Sales will continue to decline in the wake of Switch 2 release in ~Mar 2025, with sales slipping in March 2025 especially: 1.75m. Most interesting and critical projection is sales expectation for 2025. I predict 18m for Switch 2, on par with the Wii's initial sales trajectory, but less sure for the original Switch. As much as I would like to see 7m sales for this year, 3DS only managed 6m on the back of a new and popular model revision (2DSXL) and continued exclusives such as a Pokemon game revision that year, which Switch will lack due to Switch 2 being almost certainly being backward-compatible. Total through March 31, 2025 is 153.36m.

Outlook for FY 2025 will be just under 6m, with sales being tilted strongly towards holiday sales to clear inventory. Total through March 31, 2026 is 159.11m. However, while I predict sales in 2025 to be below your 6m target, I do believe that Nintendo will continue to sell the Switch through 2027. For context, the 3DS still sold an additional 3.5m post-2017. As such I predict Switch will sell an additional 2.5m before its discontinuation, for a final total of 161.61m. Final regional breakdown: 62m in North America, 39m in Japan, 41m in Europe, and 19.5m in other territories. 

Bumping my post from last year, looks like Japan and Europe LTD through Q4 2024 was more or less where I was expecting them to be (working with increments of 0.25m). Still, the Switch appears to be falling more precipitously in America, where disposable income is higher, and people are holding off on purchases until new hardware is released. My outlook for Q4 of the fiscal year and next fiscal year remains the same, between 1.5-2m for this quarter and a 6m target for the next fiscal year being attainable alongside 18-20m Switch 2 units during the same timeframe. Our attention soon turns to what the successor will manage in its launch year.

Last edited by CheddarPlease - 18 hours ago