Nintendo raises Switch sales forecast

OSAKA: Nintendo raised on Thursday its full-year sales forecast of the hit Switch console, after posting its highest quarterly profit in 10 years that was driven by strong demand for the device over the year-end shopping season.

Nintendo raised its full year sales forecast for the Switch to 19.5 million units from 18 million units estimated previously.

Operating profit for the October-December quarter rose 6% to 168.7 billion yen ($1.54 billion) versus 158.6 billion yen a year earlier.

That was below an average forecast of 175 billion yen from 10 analyst estimates compiled by Refinitiv.

Nintendo sold 12.6 million units of its hybrid home-portable Switch device in the nine months to December and 5.2 million handheld-only Switch Lite units that went on sale in September.

Nintendo’s release of the lower-priced Switch Lite handheld and two new Pokemon titles – the console’s fastest-selling – have helped drive momentum in the device’s third year as hardware from rivals Sony and Microsoft approaches the end of its lifecycle.

Gaming fans have growing opportunities to experience Nintendo’s popular roster of characters, from a branded store in Tokyo that has seen long queues, to a Nintendo-themed area due to open in Osaka’s Universal Studios Japan theme park this summer.

Nintendo is pushing into mobile gaming with its latest title, a version of its marquee racing series Mario Kart, which was widely downloaded but disappointed fans with its lack of a multiplayer option that is now undergoing testing.

Revenues from mobile have topped $1 billion, analytics firm Sensor Tower estimates, with Nintendo’s home market of Japan and role-playing title Fire Emblem Heroes the biggest drivers.

The company’s expansion includes the start of Switch sales in China in December with partner Tencent Holdings as it tries to take control from a grey market for its products.

With its family-friendly games, Nintendo is seen as having a better chance of receiving approval for its titles from the country’s regulators.

Nintendo’s shares closed down 1% ahead of the earnings, with the benchmark index .N225 down almost 2%.