The famous Japanese video games console maker Nintendo Co Ltd. is expecting its highest earnings in seven years. Nintendo forecast nearly doubled its full-year profit as it pointed to increased sales of its Switch games console, which resulted in shortages in the production unit of its Switch.
As reported by Bloomberg, demand for the hybrid home-portable Switch has lead to the doubling of Nintendo’s stock price to nine-year highs since the device’s March launch. Sales have exceeded the company’s initial estimate, leaving behind those of predecessor Wii U, and leaving suppliers scrambling for parts.
Nintendo raised its operating profit outlook to 120 billion yen ($1.1 billion) from 65 billion yen for the current fiscal year from March. Revenue is now forecast at 960 billion yen, up from 750 billion yen.
Nintendo President Tatsumi Kimishima said at an earnings briefing, adding the firm misjudged demand.
“We’ve boosted Switch production to meet strong demand as it was difficult for customers to buy the consoles at retail stores.”
Nintendo’s Switch has been a remarkable challenger for Microsoft’s Xbox One and Sony’s PS4 especially due to its legendary games like Super Mario Odyssey has made its place in gamers’ hearts.
The Switch’s early success has fueled hopes for strong earnings in the coming years, as solid demand for new consoles is widely regarded as a way to strong sales of high-margin game software over several years.