The giant videogames maker Nintendo Co Ltd which is expecting it’s highest-earning since 2010 almost double its profit for this year on Monday as shortages of its new Switch game console began to cool down.
The Japanese based company saw demand for their hybrid home-portable Switch skyrocket their stock price, now standing at a nine-year high after the device launched in March. Sales for this game console has gone beyond what analysts had expected, beating the sales record of their former game console Wii U, with supplying now looking for parts.
The president of Nintendo while briefing investors about the earnings stated that, “We’ve boosted Switch production to meet strong demand as it was difficult for customers to buy the consoles at retail stores.” He also reiterated that the firm misjudged the demand for the Switch game console. The success recorded by Switch so far has seen expectations rise with hopes that it could fuel strong earnings over the next few years, with other softwares to be built based on the success of the console.
Competition though is something they will have to face as Microsoft Corp will soon release its new high-powered, high-resolution Xbox One X console by the 7th of November. Kimishima added that “The true power of the Switch would be tested during the upcoming holiday season.”
Nintendo has now adjusted its profit expectation as it now expects to rake in $1.06 billion for the financial year that will end by March. The increase in profit is boosted by the high sales of Switch and partly due to the Japanese Yen being weaker against the Euro
The company has also increased the number of Switch consoles they hope to sell before the end of the year from 10 million to 14 million. This will be better than the total number of Wii U consoles sold since its creation, which now stands at 13.56 million console units, a game that has been on the market for five years now. The rather successful Wii console which was launched in 2006 had a sales record of 20 million consoles in its first year, going on to sell over 100 million units during its lifespan.
The company has sold 2.9 million Switch consoles from July-September, bringing the total sales to 7.63 million units.
