Nintendo nearly doubles net profit forecast on Switch console
TOKYO, Japan – Nintendo nearly doubled its full-year profit forecast Monday, October 30, as it pointed to sizzling sales of its Switch games console and a cheaper yen for the upbeat outlook.
The Kyoto-based video game giant said it now expects net profit to be 85 billion yen ($748 million) for the fiscal year to March 2018, well up from an earlier estimate of 45 billion yen.
Nintendo also boosted its sales projection for the Switch, which was launched in March with a price tag of US$300 and is seen as a new pillar for the company's earnings.
The company said it expects to sell around 14 million Switch consoles in the current business year, up from an earlier 10 million forecast.
The Switch, capable at home and on-the-go gaming, blends Nintendo's console and handheld device business with its fledgling mobile gaming strategy, which got a big brand win with Pokemon Go's success in the summer of 2016.
During the April-September period, the company launched several headline game titles for Switch, including Mario Kart 8 Deluxe and its popular Splatoon 2.
Its Super Mario Odyssey, which was released last week, is also expected to increase sales for the second half, the firm said.
Meanwhile, expectations for a relatively weak yen boosted the bottom line as it inflates the value of profits earned abroad by Japanese exporters. – Rappler.com