Home Business News Switch sales nearly double Nintendo profit outlook

Switch sales nearly double Nintendo profit outlook

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Nintendo has nearly doubled its full-year profits forecast thanks to the success of its new Switch hybrid game machine.

The Japanese video games maker said it expected an annual bottom line of 120bn yen (£800m), compared with an earlier outlook of 65bn yen (£430m).
It reported operating profit of 40bn yen (£270m) for the six months to the end of September, up from a loss of 6bn yen (£40m) the year before – as sales nearly trebled to 374bn yen (£2.5bn).
The Switch games console, which can be used both as a hand-held portable device and home video game machine connected to a TV screen, was launched in March.

Image: Nintendo’s Super Mario character on screen at a launch event for the Switch earlier this year
Sales have exceeded the company’s estimates, outstripping those of predecessor Wii U, and leaving suppliers struggling for parts, though Nintendo said it had now boosted production to meet demand.
Nintendo sold about 2.9 million Switch consoles in the three months to the end of September, bringing the cumulative total to 7.6 million units.
It also hiked its Switch sales forecast for the year to the end of March to 14 million consoles from 10 million – and this figure alone would exceed the 13.6 lifetime sales of the Wii U.
That console was on the market for about five years but failed to live up to its predecessor the Wii, which sold 20 million in its first year and went on to shift more than 100 million units.

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The Switch’s early success has led to a near-doubling of Nintendo’s stock price to nine-year highs – with demand widely seen as a prelude to strong sales of software over several years.
Nintendo said its Switch Splatoon 2 game, released in July, had been popular both in Japan and overseas with 3.61 million sold globally while Mario Kart 8 Deluxe and ARMS also performed well.
Super Mario Odyssey for the Switch launched last week.
Competition looks set to intensify as the Christmas shopping season approaches and Microsoft releases its high-resolution Xbox One X console next week.
Nintendo president Tatsumi Kimishima said: “The true power of the Switch would be tested during the upcoming holiday season.”
The company, which also makes the 3DS portable console, has scored recent success in offering games for smartphones and other devices such as Super Mario Run.

Source: SKY