Kyoto-based gaming giant, Nintendo has raised its operating profit forecast for the financial year ending in March by 11 per cent, projecting a figure of 500 billion yen (approximately $3.32 billion). This increase is attributed to the appeal of its ageing Switch console, supported by a range of heavyweight franchises that continue to captivate gamers, Reuters reported on Tuesday.
The Nintendo Switch, a hybrid gaming device that seamlessly transitions between home and portable play, has been in the market for seven years. The company has successfully extended its lifecycle through incremental hardware updates and the release of software featuring beloved characters from its roster.
In the first six months of the current financial year, Nintendo sold 6.84 million Switch units, a modest improvement over the 6.68 million units sold during the same period last year. Notable game releases this year include “The Legend of Zelda: Tears of the Kingdom,” launched in May, and “Super Mario Bros. Wonder,” released in October.
Nintendo’s influence in popular culture is evident, as seen by the success of the Super Mario Bros. movie. Despite the challenges posed by the pandemic, the company has enjoyed a standout year with a flurry of new game releases across the industry. “Tears of the Kingdom” alone has sold 19.5 million copies as of the end of September, prompting Nintendo to raise its full-year software forecast by approximately 3 per cent, anticipating 185 million units.
The company’s outlook for the critical year-end shopping season is expected to receive a further boost with new game releases. “Super Mario RPG” is set to launch on November 17, enhancing Nintendo’s line-up.
According to Reuters, Nintendo’s President Shuntaro Furukawa emphasised that the full-year forecast for the Switch console, at 15 million units, represents a reasonable target. This figure, while reflecting a 16.5 per cent decline compared to the previous year, is neither overly conservative nor aggressive.
(With inputs from Reuters)
