It's been a huge year for Nintendo Switch, and that's great news for GameStop. The popular retailer reported a 44.8% increase in hardware sales over the fourth quarter of 2017, and a 28.3% boost to hardware sale over the full year. The strong numbers are largely attributed to Nintendo Switch's historic first year on the market, and GameStop executives believe we can expect the same in 2018.
GameStop CEO Michael Mauler recently met with investors, and he lauded Switch's strong start. Still, given the failure of Wii U last generation, some investors have concerns. One in attendance asked Mauler if Switch can be expected to maintain a high attach rate beyond its first year. In response, Mauler indicated that Switch sales in 2018 will be boosted by multiple big games that are still unknown to the public.
"Yeah, I think that's a fair question with Nintendo. I mean we know kind of what happened with Wii U. I'd say this is definitely a whole different platform than we saw in the past. We have visibility to the software. So last year was a tremendous year for the software, as well as hardware between Zelda and Mario Odyssey and all the games that they had really drove a lot of hardware sales, as well as software.
"I think this year when we look at the slate of titles, many of which haven't been announced yet, this year looks also very, very strong. So I think, at least, for 2018, we'll continue to see the strong software slate drive additional installed base on the hardware and increase attach rate. We don't have really visibility for 2019 yet, but for 2018 it should play out that way." — Michael Mauler
Nintendo Switch sales were largely fueled by The Legend of Zelda: Breath of the Wild and Super Mario Odyssey, both winners of numerous Game of the Year awards, but GameStop expects similar numbers in 2018 based on unannounced games. What does Nintendo have in store for the second latter half of the year? Are they counting games that have only been vaguely teased, like Metroid Prime 4 and Pokémon? We're looking forward to what the rest of the year holds.
Source: Nintendo Everything