Bloom berg
published an interesting article about Nintendo’s dominant market share and their natural successor to the Switch called the Switch 2. The article interviewed analysts to find out if they think the next system will be a big hit like the current Nintendo Switch which still continues to sell quite a few units for the Japanese the company. The answer, according to two analysts interviewed, is not promising, but on the other hand, the original Switch was a huge hit and the next iteration, if there is one, will surely be more expensive than the current system.
“We don’t think the new console will be as successful as the Switch and see potential earnings after the announcement,” wrote a Macquarie Group Ltd. analyst. Yijia Zhai in a recent report, downgrading Nintendo to neutral.
Goldman’s Munakata doesn’t expect the Switch sequel to boost Nintendo’s total addressable marketbut he says that could change if the console “proves to be a new hardware concept rather than a successor in the same vein as the Nintendo Switch.”
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