Bloomberg has published an interesting article about Nintendo’s dominant market share and their natural successor to the Switch dubbed the Switch 2. In the piece, analysts were interviewed to find out whether they think the next system will be a smash hit, like the current Nintendo Switch which still continues to sell plenty of units for the Japanese company. The answer, according to the two analysts interviewed, is not promising, but then again, the original Switch has been an ultra smash hit and the next iteration, if it is that, will certainly be pricier than the current system.
“We do not think the new console will be as successful as the Switch, and see potential profit-taking after the announcement,” Macquarie Group Ltd. analyst Yijia Zhai wrote in a recent report, downgrading Nintendo to neutral.
Goldman’s Munakata does not expect the Switch follow-up to increase Nintendo’s total addressable market, but says that could change if the console “turns out to be new concept hardware rather than a successor along the same lines as the Nintendo Switch.”
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