 There are times here at Nintendo Prime that we cover things that industry analysts have to say about Nintendo. And sometimes it's just because they're saying a lot of positive things. Sometimes it's because they're claiming they have inside information. And other times it's just because they're not holding Nintendo to the same standards they hold other companies to. And that is what we're talking to today because we have a group of analysts over at Bloomberg that have decided to reign on the Nintendo Switch to parade and essentially tell us, hey, this thing isn't really gonna be that successful. In fact, remember the peak of Switch, it's not even gonna come close. And the only way they can actually get close would be to release another wild out there completely different type of platform. And the fact that this is not that is going to actually hurt them. Now again, the reason that this is wild and different is they don't say these things about Sony who for, well, five generations now has been releasing iterative platforms. They don't land-based Sony over that. They don't project Sony to fail. But for some reason, Nintendo just can't be as good as they once were because they're trying to do it again. It's kind of weird. Let's go ahead and dive right in. So as you can see here, it says an analyst don't expect Switch successor to be as big of a hit as Switch Nintendo was back to being doomed. This was actually a Bloomberg article but because it's behind a paywall, we're gonna use some quotes over here from Go Nintendo. It says, as most dedicated Nintendo fans know, we don't know a single thing about the Switch successor, at least not officially. There are rumors and rumblings, insiders, Scuttlebutt and leaks, but the big N has remained quiet on their next-gen hardware. Still, analysts apparently feel more than comfortable predicting the next platform's success or lack thereof. A new report from Bloomberg has gathered comments from various analysts around the world and they all seem to agree on one thing. The Switch's successor is going to fail to meet the same reach that the current Switch has achieved. Again, this is just based on speculation and predictions on what the new platform will offer. So take their comments with a grain of salt. So the first one, and this comes from Minami Minakata, an analyst from Goldom Sachs, is as in our five-year earnings estimates, we do not see profits during the next generation of hardware cycle, surpassing the peak profits of the Nintendo Switch cycle. This could change if the hardware turns out to be a new concept hardware, rather than a successor along the same lines as Nintendo Switch. Remember what I said, they don't say this crap about Sony, but apparently Nintendo can only be deemed to have a as successful generation if it's some wildly different type of platform again. Now, this next one comes from the Macquarie group, LTD analysts, Yuji Zay, and I probably mispronounced their names, I do apologize, says we do not think the new console will be as successful as Switch and see potential profit taking after the announcement. Now, you might be wondering, you know, what the hell does any of this matter? Well, Go Nintendo goes on to say having covered analyst commentary and predictions for the better part of 20 years, I could definitely say that comments like this are a dime a dozen. Some analysts end up getting things right and others are completely off the mark. It's all a crap shoot in the end, no matter how educated some analysts may consider their predictions to be. And we'll put a link down to the Go Nintendo article, specifically because again, the Bloomberg article is behind a pay wall. Now, what does this really all mean? Well, a lot of nothing because they're not claiming they're making these predictions based on any actual knowledge. It's not like other analysts that have come out and talked about, you know, some of the specs or some of the inside information, the screens, how many screens are being made. You know, that was actually talked about by an analyst who was using inside information to give us that. So yes, you can sometimes clean some information from analysts when they're using inside information. But this is one of those cases where I do think that these guys are kind of forgetting something because they talked about the overall profit levels of Nintendo can't hit the Pika Switch. And look, if you want to say the Pika Switch was due to the pandemic and the 28 million that it sold in 2020 and Animal Crossing, I understand that is a peak that very few systems ever get to. But they're kind of forgetting Nintendo isn't just that. They're launching an all new theme park in Orlando, Florida, literally in 2025. Oh, by the way, they have probably multiple movie projects in the work. There's a live action movie project in the work. Won't be surprised if the next Mario movie or some other, you know, animated movie is also in the works. The very first one was a $1.3 billion box office success. So Nintendo's not got all these other additional revenue that they didn't have at the actual peak in height of Nintendo Switch. Remember the Mario movie came out last year, the Pika Switch was 2020. So they already have additional profit drivers for them. So just in terms of pure Nintendo profits, they don't need the next platform to be as successful because they have other sources of revenue. But what I find fascinating is just why they say these things about Switch, but they never say them about new generation systems for Sony. I actually went back and looked up what these people had to say about the Nintendo Switch and the PlayStation 5. And they basically said that they saw the PlayStation 5 being as successful as the PlayStation 4. And then they also said the Switch would be a failure as well. So how about that? The Switch was gonna be a failure for Nintendo. And here we are with the Switch, not only not being a failure, potentially maybe the most popular system of all time. And now they're saying that, hey, the successor isn't going to match Switch. And I think it's obviously a fair thing to say that Nintendo Switch 2 might not sell 140, 150 million units. I think that is probably a safe thing to say because selling that many units is so rare in the industry. But it would still be a success if it sells 100 million plus, right? Like Nintendo's never had anything go back to back 100 million plus. That's what Sony does every time, right? The PlayStation 1, the PlayStation 2, the PlayStation 4, and probably the PlayStation 5 are all gonna sell over 100 million. That's a consistent sales pattern. Yeah, if Nintendo can get Nintendo Switch 2 to sell over 100 million, say it sells 105, 110, 115, that is a very successful platform for Nintendo. And what it probably mean, they would release another iterative system because they just had back to back for the first time in company history, 100 million plus selling system. So I'm just gonna sit here and say that while they might be technically right when it comes to Switch 2 sales might not hit 130, 140 plus million, I think they're wrong on the peak profits for Nintendo because they now have so many other profit drivers for them and this didn't even count. They could release hit mobile games in between. But more than that, I just wanna say we don't know anything officially about this platform. And that is to me, I think the key that we need to always keep in the back of our minds. Whatever Nintendo is gonna do, whatever could possibly happen is something that is just all possibilities. Look, I don't think Switch 2 is gonna outsell the Nintendo Switch either. Does that mean it won't be more successful or more profitable? How would I know? How do I know the next Mario Kart game doesn't go on to sell 90 million copies instead of what Mario Kart 8 Deluxe did if the software sales are even higher on this next system, even if the hardware sales are a little lower, that would make it a more profitable system for Nintendo. What if it has more big AAA third-party support? Are you not counting possible sales of Call of Duty being on this platform? Nintendo gets 30% of all of those sales. So there are lots of different ways Nintendo might actually be more profitable while selling less systems. Subscription services. What if that goes up and you get more and more work? If they now have like 60, 100 million subscribers. I'm just throwing out there there are so many different ways for Nintendo to drive profits that even if they don't hit the sales high of Nintendo Switch for a 28 million peak year, that doesn't mean that it can't be pretty much as if not more successful for them in different ways. So take this for what you will. Analysts are gonna say what they wanna say. Nintendo's been doomed since forever, the 1800s. They've been doomed since they came into existence. That's just the way it is. Analysts are always talking about how doomed Nintendo is and how they're going to fail. And because the system's iterative, even though other people do it and you don't project their downfall because Nintendo's doing it and because their history suggests well when they release iterative platforms they flop on their face. This is a different Nintendo and the Switch is a different kind of platform. It gets all of Nintendo's games. I'm just saying. Thank you guys so much for tuning in. I am Nathan DeRovage from Nintendo Prime. We'll catch you in the next video.