Nintendo Switch 2 Prospects: Can It Outshine The Original, Analysts Ask

A recent report highlighted the uncertain future of Nintendo ADR's NTDOY flagship console line, the anticipated Switch 2.

Recently, analysts examined the potential successor to the highly successful Nintendo Switch, and expressed skepticism about whether the new console would be as successful as the original, Bloomberg reported.

See Also: Nintendo Plans Massive Switch 2 Launch With 8-inch LCD Screen In 2024: Report

Minami Munakata from Goldman Sachs commented on the projected profits, stating, "In our five-year earnings estimates, we do not see profits during the next-generation hardware cycle surpassing peak profits of the Nintendo Switch cycle."

Furthermore, Munakata anticipated that the upcoming Switch iteration will not expand Nintendo's total addressable market. He did note this projection could shift if the console "turns out to be new concept hardware rather than a successor along the same lines as the Nintendo Switch."

Meanwhile, another comment from Yijia Zhai of the Macquarie Group was plain and to the point: "We do not think the new console will be as successful as the Switch."

According to insights from Bloomberg referencing Omdia data, the upcoming console is poised to adopt an 8-inch LCD screen, facing backlash for what some view as a downgrade from OLED technology.

Nevertheless, Nintendo plans an ambitious production of 10 million units starting April 2024, aiming to tackle potential stock challenges.

This robust manufacturing strategy suggests a sizable launch, with the speculated Switch 2 expected to hit the market at $400.

Analysts posit that the initial use of an LCD screen may be a cost-cutting move, potentially paving the way for a future OLED version.

Read Next: Switch 2 Hype Builds As Best-Sellers Disappear: Nintendo's Repackaging Strategy Unveiled?

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