Nintendo said it hopes to market 24 million of its Switch games consoles at the year ending March 2021, up from a forecast of 19 million but still regarded as cautious, since the COVID-19 pandemic drives a gaming boom.
The Kyoto, Japan-based gaming company also hiked its operating profit forecast by 50% to 450 billion yen (approximately $4.3 billion) as titles such as “Animal Crossing: New Horizons” bring new consumers to the Switch at its fourth year in the marketplace.
Operating profit for July-September alone more than doubled from the same period a year earlier to 147 billion yen, calculations revealed, with Nintendo reporting first-half operating earnings were 291 million yen.
Home of the enduring “Super Mario” franchise, Nintendo had been reluctant to raise forecasts despite strong sales of its Switch system, stating the increase from consumers stuck in home could prove transitory.
The resolution of Switch manufacturing problems that affected the company earlier in the year drove earnings, prompting the prediction revision, Nintendo President Shuntaro Furukawa told reporters through a earnings briefing.
Nintendo said it sold 12.5 million Switch devices in the first half of the financial year, comprising 8.4 million hybrid home-portable Switch consoles and 4.2 million portable-only Switch Lite apparatus.
The prediction “is still conservative, but at least Nintendo reacted,” explained Serkan Toto, founder of sport business consultancy Kantan Games, pointing to Nintendo’s past reluctance to increase predictions.
Lockdowns and curbs imposed around the world to attack the new coronavirus have reduced entertainment options for many, implying there will be continued demand for gaming over the year-end shopping year.
The Switch has continued to sell well into October, Furukawa said.
Nintendo doesn’t find a big direct effect from the new devices on the mid-cycle Switch, Furukawa said.
Sony’s gaming leader stated last week which pre-release demand for the upcoming console, the PlayStation 5, is surpassing expectations, using the technology giant raising its full-year prediction.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Sam Nussey. Editing by Kenneth Maxwell and Barbara Lewis.
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