Switch Sales Cool as Nintendo Plots New Models

Smaller, cheaper Nintendo Switch might surface in June

Buried within a broader article about traders shorting Nintendo stock, Bloomberg has cited two sources saying that cheaper version of the Switch will be released by the end of June.

Nintendo's push into mobile is yet to deliver a major hit, although analysts point to Mario Kart Tour, developed with DeNA and due for release this summer, as a possible contender.

Software titles have also underperformed, with 119 million software units sold in Nintendo's last fiscal year, less than the expected 121 million units. A Nikkei report earlier this month suggests that those features would include better image rendering and usability changes, while the cheaper model would work with the existing Switch dock.

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By quarter, Nintendo posted a profit of 25 billion yen ($223 million) for the January-March period, more than five times what it earned the previous year, on 203 billion yen ($1.8) quarterly sales, up 2%.

What the sources could say with confidence is that the smaller Switch will be out sometime in June... which, admittedly, would line up nicely with E3 2019 and the company's most-watched Nintendo Direct event. While that missed the company's ambitious plan to sell 20 million units during the fiscal year, it did represent a 12.7% year-on-year increase.

The industry is facing a shake-up with established console gaming companies like Nintendo and Sony Corp exposed to competition from new entrants like Alphabet Inc's Google offering browser-based games streaming services. Nintendo's gotten away from big E3 or E3-adjacent hardware announcements in recent years.

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