Switch sales nearly dou­ble Nin­tendo profit out­look

Sun.Star Pampanga - - TECHNEWS! -

The games maker ex­pects the num­ber of Switch con­soles sold in its first year to ex­ceed the to­tal num­ber of Wii U ma­chines shifted.

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 hand­held por­ta­ble de­vice and home video game ma­chine con­nected to a TV screen, was launched in March.

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.

The Switch's early suc­cess has led to a near­dou­bling 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.

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