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Forums - Nintendo - So... Will Nintendo be able to ship those 20 million Switch units?

Amnesia said:
I expect 11-11,5M for Q3 and 3,5-4M for Q4.
Don't worry we will have our answer in 28 days :)

So, how much do you expect Switch being SOLD to consumers by the end of the year then? (i mean end of 2018, not FY). What do you expect VGC will show when they have all 2018 data, even after adjustements if needed?



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RolStoppable said:
It has been clear since the announcement of Pokémon and Super Smash Bros. bundles in September that Nintendo will prioritize profits over hardware unit sales this fiscal years. Nintendo should comfortably meet and exceed their forecasts for profits and software sales, so falling a bit short on hardware sales isn't going to be a big deal. And they will fall short, because Switch isn't looking like it will ship 11.5m and 3.5m in the final two quarters.

We are still waiting for a lot of sales data from North America and Europe, but holiday sales have been strong across the globe, so shipments for Q3 of this fiscal year should be 10m+. Q4 shouldn't have a problem to at least match the previous year, because Pokémon and SSB will still be fresh and NSMBU Deluxe releases in January; it's reasonable to expect 3m+ for the quarter, bringing the total to a minimum of 18m. Said 18m will put Switch ahead of PS4 once again.

First full fiscal year:
PS4 - 14.8m
Switch - 15.05m

Second full fiscal year:
PS4 - 17.7m ($50 price cut)
Switch - 18m+

Realistically, the worst case for Switch is that it only matches the PS4 and it does that without a price cut.

Considering that Switch won't fall far short of the forecast, a price cut in October to $250/€250/25k yen would have certainly made 20m attainable. But missing that target isn't a serious cause for concern when full context is being applied.

This. I completely agree and i've been saying that for months. The moment Nintendo made an hybrid console it was obvious Nintendo abandoned the race for "unit sales" and instead entered the race for "profit sales" and this became more obvious after Nintendo announced their own Online paid service. That's why i not expecting Switch reaching Wii sales lifetime but still being the most succesful Nintendo ever thanks to 1st party sales and subcriptions for Online.

As for the rest. 18M+ is definitively possible, and it will be an enormous success because like you said, it will put ahead of PS4 in the same time period in shipment sales.

I still think Switch will fight to reach 17M shipped though.



colafitte said:
Amnesia said:
I expect 11-11,5M for Q3 and 3,5-4M for Q4.
Don't worry we will have our answer in 28 days :)

So, how much do you expect Switch being SOLD to consumers by the end of the year then? (i mean end of 2018, not FY). What do you expect VGC will show when they have all 2018 data, even after adjustements if needed?

 

Why do you say end of the year and not end of the FY? When Nintendo said 20 million they meant FY not the end of 2018

我是广州人

RolStoppable said:
It has been clear since the announcement of Pokémon and Super Smash Bros. bundles in September that Nintendo will prioritize profits over hardware unit sales this fiscal years. Nintendo should comfortably meet and exceed their forecasts for profits and software sales, so falling a bit short on hardware sales isn't going to be a big deal. And they will fall short, because Switch isn't looking like it will ship 11.5m and 3.5m in the final two quarters.

We are still waiting for a lot of sales data from North America and Europe, but holiday sales have been strong across the globe, so shipments for Q3 of this fiscal year should be 10m+. Q4 shouldn't have a problem to at least match the previous year, because Pokémon and SSB will still be fresh and NSMBU Deluxe releases in January; it's reasonable to expect 3m+ for the quarter, bringing the total to a minimum of 18m. Said 18m will put Switch ahead of PS4 once again.

First full fiscal year:
PS4 - 14.8m
Switch - 15.05m

Second full fiscal year:
PS4 - 17.7m ($50 price cut)
Switch - 18m+

Realistically, the worst case for Switch is that it only matches the PS4 and it does that without a price cut.

Considering that Switch won't fall far short of the forecast, a price cut in October to $250/€250/25k yen would have certainly made 20m attainable. But missing that target isn't a serious cause for concern when full context is being applied.

I can agree for the 11.5M in the 3rd quarter being probably a miss, but 3.5M in the last quarter doesn't seem out of reach at all to me. Switch shipped about 3M last year in that quarter, with some increased momentum through Smash & Pokemon plus some releases (NSMBUDx among others, and I expect Yoshi to release in March to keep it up), 3.5M doesn't seem out of reach at all to me for the 4th quarter.



Ashadelo said:
colafitte said:

So, how much do you expect Switch being SOLD to consumers by the end of the year then? (i mean end of 2018, not FY). What do you expect VGC will show when they have all 2018 data, even after adjustements if needed?

 

Why do you say end of the year and not end of the FY? When Nintendo said 20 million they meant FY not the end of 2018

The only reason is because he already stated how much Switch is going to ship in Q3 and to know both VGC and official Q3 from Nintendo numbers will only have to wait a few days instead of months, that's all.

If Switch is going to ship 11'5M in Q3 that will put Switch around 34'5M. Switch is according to VGC at 26'1M sold to consumers with 3 weeks left for the year. How much units are going to be on shelves then according to him??, is Switchi suddenly going to sell 2M per week the rest of the year or what?, are VGC numbers wrong then??



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It will be super close, but it doesn't matter much to me anymore. Nintendo has proved that the Switch is a success and will continue being a success, 20 million or not



RolStoppable said:
colafitte said:

This. I completely agree and i've been saying that for months. The moment Nintendo made an hybrid console it was obvious Nintendo abandoned the race for "unit sales" and instead entered the race for "profit sales" and this became more obvious after Nintendo announced their own Online paid service. That's why i not expecting Switch reaching Wii sales lifetime but still being the most succesful Nintendo ever thanks to 1st party sales and subcriptions for Online.

As for the rest. 18M+ is definitively possible, and it will be an enormous success because like you said, it will put ahead of PS4 in the same time period in shipment sales.

I still think Switch will fight to reach 17M shipped though.

That doesn't make sense, because Nintendo has definitively not given up on unit sales. The "sacrifice" they are making in unit sales this fiscal year will allow them to prolong the lifecycle of Switch, because they are pushing back price cuts and revisions to later dates. Nintendo is coming off the 3DS which had price cuts and revisions early; while that helped sales in the first half of the 3DS's lifecycle, it came at the expense of sales later in the lifecycle because the customers who wait for certain prices on the hardware were able to buy the console quite early.

Since so far Nintendo is doing things that will help Switch to have high yearly sales for a longer time, it's more than feasible to beat the Wii in the end, especially if they accomplish the goal of turning Switch into a one-per-person device as opposed to the one-per-household device it is right now.

The 3DS will have lifetime sales of ~75m, so Nintendo would have to begin to sabotage Switch in order to fall short of Wii sales.

Well, that won't make sense to you then, for me it makes all the sense of the world. I already said in other thread what i expect from Switch. No Nintendo console (handheld or home console) has mantained the sales of their 2nd or 3rd years or sales. Switch has not proved anything different wll happen. 17M FY2018, 17-18M FY 2019, 12-13M FY2020, 10M FY 2021, 8M FY2022......, so around 82-84M shipped at most by then. By end of 2022, Switch will have its succesor already announced and in 2023 Switch will drop a lot. So around 86-87M shipped at most lifetime.

I know some people won't agree with me, and that's  completely fine, but this is my honest prediction.



Asriel said:
No, I highly doubt it - that soft spring quarter has hamstrung them somewhat. They needed to be coming in at around 3 million units or more for each quarter outside of Q3; 1.88 million in Q1 just wasn't good enough. Labo clearly hasn't taken off the way they hoped; the three packs combined have probably sold less than Xenoblade Chronicles. Selling less than a middle-tier JRPG is not what you want for a new game that's meant to bring your hardware to a wider audience.

My guess is they're going to land in the 18-18.5 million range, which would still be strong. As others have noted, PS4 did about 17.7 million in the second fiscal year, so around the 18 million mark would be good for Switch. Nintendo are at ~5.1 million now; I can see 9.5 million for the holiday quarter and 3.5 million in Q4, for a little over 18 million for the financial year.

This is what I said two months ago - I'll stand by this. There's a good chance of the third quarter coming in around 10 million and I see 3 to 3.5 million as the range for the fourth quarter. Much as I'd like to see 4 million in Q4, I'm not sure Switch's baseline is going to be high enough for that without either a price cut or a hardware revision (especially to lift sales in Japan, where it's selling strongly for a home console but behind the sales curve of the more successful portable systems like 3DS and DS). 

It's very clear that first quarter has cost them in terms of hardware sales, but given they'll likely be exceeding their software target and will likely be within 10% of their hardware target, I don't think they'll be concerned. If they'd kept to a 3 million (or so) pace in the first quarter, we'd likely be looking at Switch coming in somewhere around 19.2 to 19.7 for the fiscal year, perhaps even bang on 20 million. Labo, like Arms and 1-2 Switch, hasn't caught on the way Nintendo's more conventional first party offerings has - but the tremendous success of Smash Bros and continuing success of the evergreen cohort bodes very well for Luigi's Mansion 3, Animal Crossing and Pokemon generation 8, and for Nintendo's next financial year.

It'll be interesting to see what software Nintendo offer after 2019. The only major sellers waiting in the wings I can think of would be Super Mario Maker and perhaps a Switch version of Nintendogs, but I'd guess Nintendo will have something less conventional planned, too (new IP). Metroid Prime 4 and Bayonetta 3 are candidates for 2020 (as well as 2019), but they won't be major sales drivers.



RolStoppable said:
colafitte said:

Well, that won't make sense to you then, for me it makes all the sense of the world. I already said in other thread what i expect from Switch. No Nintendo console (handheld or home console) has mantained the sales of their 2nd or 3rd years or sales. Switch has not proved anything different wll happen. 17M FY2018, 17-18M FY 2019, 12-13M FY2020, 10M FY 2021, 8M FY2022......, so around 82-84M shipped at most by then. By end of 2022, Switch will have its succesor already announced and in 2023 Switch will drop a lot. So around 86-87M shipped at most lifetime.

I know some people won't agree with me, and that's  completely fine, but this is my honest prediction.

That doesn't make sense either. You should check out DS sales.

What doesn't make sense? Did DS sold in 2010, 2011 or 2012 as much as in 2007, 2008 and 2009???, I'm missing something?



RolStoppable said:
colafitte said:

What doesn't make sense? Did DS sold in 2010, 2011 or 2012 as much as in 2007, 2008 and 2009???, I'm missing something?

You said no Nintendo console has maintained its year 2 and year 3 sales. That's wrong. Here are the DS stats, the fiscal year ending March 2005 only covers 4.5 months, so it would be year 0.

Fiscal year ending March 2005 - 5.27m
2006 - 11.46m
2007 - 23.56m
2008 - 30.31m
2009 - 31.18m
2010 - 27.11m
2011 - 15.53m
2012 - 5.10m
2013 - 2.35m

The DS's fourth and fifth fiscal year were higher than its second and third fiscal year. Likewise, fiscal year 4-6 combined are higher than fiscal year 1-3 combined.

Well, point for you, with DS you were right. But because just 1 of 11 Nintendo consoles had better sales in year 4-5, even having a good year 6 we should now expect Switch to be the same?? What Switch has made to think it will replicate DS success? Why not compare it to Wii or 3DS?? (which in my opinion, its pace is far more similar). What happened to the shipments of those consoles? (don't need to put the numbers, don't worry, i suppose both know the numbers).

Last edited by colafitte - on 03 January 2019