Nintendo Profit Outlook Doubles Thanks To Booming Switch Sales


For the three-month period ended June 30, 2016, Nintendo posted an operating loss of 5.13 billion yen (~$45.2 million) after net sales declined 31.3 percent year-over-year.

Nintendo sold 4.89 million units of the device in the six months to September.

Nintendo raised its operating profit outlook to 120 billion yen ($1.1 billion) from 65 billion yen for the current fiscal year from March.

While this previous number was good, it appears that things are looking a little better with a new number of 14 million being issued for projected sales. The now-defunct older console reached 13.56 million sales over its five-year lifetime, while the original Wii sold more than 100 million units.

Nintendo's "Super Mario Run" launched in December was also well-received by a new generation of mobile gamers. "We want to make sure stores have our products in stock", Nintendo President Tatsumi Kimishima said Monday. With the holiday season sales quantities in Nov and Dec Nintendo thinks the red line (see above) will cross above the Wii sales performance chart. Amid outsized demand from makers of smartphones and electrified vehicles, the company is seeing "intermittent shortages of various parts", even transistors and other commodity-grade components, said a Nintendo procurement executive.

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Nintendo NTDOY released the Switch in March, offering games the opportunity to play both at home and on the go. It now looks like holiday season sales for Nintendo Switch could catch up to the Wii figures. Nor does it include the impact that game may have had on hardware sales.

Nintendo attempted that feat with the Wii U, whose primary controller came with an embedded touchscreen.

Combined with the initial 2.74 million launch sales, the final sales total by April total could be as high as 16.74 million units.

Last week's release of Super Mario Odyssey, which bettered the week one performance of Breath of the Wild in the United Kingdom, should propel those numbers even further.