Nintendo Ups Outlook Again As Switch Sales Numbers Hit Nearly 15M Units

Nintendo Ups Outlook Again As Switch Sales Numbers Hit Nearly 15M Units
ant2506 / Pixabay

Nintendo has sold 14.86 million Switch units so far, the Japanese firm revealed in its nine months earnings report released today. Following the strong sales, the company has raised its outlook for profit and Switch sales for a second straight quarter.

Switch sales number – a threat to rivals

For the current fiscal year through March, Nintendo now expects Switch sales numbers to hit 15 million units, compared to the 14 million it set in October. Nintendo also revised its operating profit outlook upward to 160 billion yen ($1.5 billion) from 120 billion yen for the current fiscal year through March.

Further, revenue for the period is now expected to come in at 1.02 trillion yen, an increase from 960 billion yen. This is not the first time Nintendo has revised its forecasts. The company, thanks to strong Switch sales, did the same last year in October as well.

As Hedge Funds Dive Into Private Equity, Tiger Global Leads The Way

Screenshot 2021 09 16 15.33.10Assets in private equity and venture capital strategies have seen significant growth in recent years. In comparison, assets in the hedge fund industry have experienced slowing growth rates. Q2 2021 hedge fund letters, conferences and more Over the six years to the end of 2020, hedge fund assets increased at a compound annual growth rate Read More

In its earnings report, Nintendo offered the region-wise breakdown of the total Switch sales as well. In Japan, the company sold 3.72 million Switch units. The U.S. turned out to be the biggest taker of the device at 5.94 million units. The rest of the world contributed 5.2 million units.

In comparison, Sony PlayStation 4, which was launched in 2016, has shipped around 67.5 million units thus far. Microsoft Xbox One is at a yawning distance with 30.97 million units shipped as of last October, notes CNET. If Nintendo continues at the same pace, it would soon topple Microsoft’s console.

Rising popularity and expectations from Switch

Investors are high in hopes that the Switch sales numbers would push Nintendo to new highs in the coming future. Shares of the game maker have doubled – rising to a decade high, on the prospects of robust sales numbers. However, with the holiday quarter over, all eyes will be on how well Nintendo can sustain (or perhaps increase) the Switch sales.

Nintendo Switch’s popularity has wooed an increasing number of developers on the platform since its launch in March 2017. A chart from Statista reveals that though only a few developers are currently working on the relatively new console, it is only behind Windows PC and PS4 when it comes to attracting developer interest.

In addition to Switch, a Nintendo Switch accessory is pushing the stock up. Nintendo recently released Nintendo Labo, new cardboard accessories that can be folded into a range of things from motorbike handles to fishing rods and a miniature piano. Analysts are upbeat about the new accessory, and believe that the new product could help the company add more gamers.

Other Nintendo products – how are they doing?

Talking of its other products, Nintendo informed that contrary to the broad expectations 3DS hardware sales did not weaken after the launch of the Nintendo Switch. Rather, the sales picked up during the holiday season in the U.S. For the Nintendo 3DS software, sales of Pokémon Ultra Sun and Pokémon Ultra Moon – both released in November – has grown to 7.17 million units. However, the overall software sales dropped by 33% on a year-on-year basis.

Nintendo also partly released the revenue for titles like Super Mario Run and Fire Emblem. The Japanese firm informed that the smartphone game revenue surged at a 172% increase on a year-on-year basis. Further, the company also revealed plans to focus “on operations that encourage more consumers to continue to enjoy playing the applications that they have downloaded.”

Updated on

No posts to display