Two days after the release of the Nintendo Switch in China, an analyst made an optimistic forecast for the console's prospects in the world's largest gaming market.
Pelham Smithers, general manager of London-based stock research and market intelligence company Pelham Smithers Associates, said in a report to clients that by the end of March next year, which is the end of Nintendo's fiscal year, the company may sell 4 million Switch devices and 12 million sets of software in China.
Smithers predicts in the report that the sales of Nintendo Switch hardware in China this fiscal year may be between 2 million and 4 million units, and the sales volume in the next fiscal year will be between 3 million and 6 million units. Sales will be between 6 and 12 million units, and between 15 and 30 million units in the next fiscal year.
The Chinese market may contribute 11.6 billion yen to 23.1 billion yen to Nintendo's operating profit this fiscal year, and it will contribute 27.8 billion yen to 55.6 billion yen in the next fiscal year.
China may contribute 11.6 billion yen to 23.1 billion yen to Nintendo’s operating profit this year and next year may be 27.8 billion yen to 55.6 billion yen.
He also assumed that Tencent would receive 30% of software sales revenue, all hardware revenue would be owned by Nintendo, and the two companies would share marketing costs.