Console Switch is a hit Nintendo doubles profit forecast

Console Switch is a hit Nintendo doubles profit forecast

Console Switch is a hit Nintendo doubles profit forecast
Nintendo increases profits thanks to the new Switch console Source: dpa

has almost doubled its profit forecast due to strong demand for its new game console, Switch. The Japanese group announced on Monday that the company is now expecting an operating profit of 120 billion yen (equivalent to 908 million euros) for the year as a whole. So far, 492 million euros had been promised. However, the increased outlook was still below the analysts’ expectations. The company, which in addition to its consoles is known for games based on well-known characters such as Super Mario or Zeldo and the smartphone game Pokemon Go, launched Switch in March. Since then, the share price has almost doubled and at times reached a nine-year high.

For a long time, the Japanese plagued delivery bottlenecks with the Wii successor. Now Nintendo has raised the sales forecast to 14 million devices from 10 million for the full year. After the initial problems in meeting the demand, production was ramped up, said Nintendo President Tatsumi Kimishima. So far, 7.63 million switch models have been sold. Analysts are betting that Nintendo will celebrate successes with the device even longer, even if a new Xbox will be available in stores next week. “The real power of Switch will be tested in the upcoming Christmas season,” Kimishima said.