Nintendo has increased its sales forecast for its popular Switch console, after reporting better-than-expected results for the December quarter.
The gaming giant said on Tuesday it now expects to sell 15.5 million Switch units in the fiscal year ending in March, up from its previous projection of 15 million.
Nintendo’s net sales for the third quarter fell 6% year-on-year to 598.6 billion Japanese yen ($4 billion), but beat market expectations of 568.7 billion yen, according to LSEG estimates.
The company’s net profit rose 18% to 136.7 billion yen, also surpassing analysts’ forecasts of 130.3 billion yen.
Nintendo attributed its strong performance to the continued popularity of its Switch console, which was launched in 2017 and has sold over 100 million units worldwide.
The Switch has been boosted by the release of new games and content, such as the “Super Mario Bros. Movie” and the flagship Zelda game last year.
Nintendo said the “Super Mario Bros. Wonder” game, which came out in October, had a “solid start,” with sales of 11.96 million units. The Mario movie also helped drive sales of older titles such as “Mario Kart 8 Deluxe,” Nintendo said.
In the first quarter of this year, Nintendo plans to launch new games featuring characters from the Mario world, such as Donkey Kong and Princess Peach.
Nintendo also raised its financial forecasts for the full fiscal year, saying it expects net sales of 1.63 trillion yen, up from 1.58 trillion yen previously. It also anticipates net profit of 440 billion yen, up from 420 billion yen.
Nintendo shares have risen around 14% this year, as investors expect the company to launch a new version of the Switch console. Analysts who spoke to CNBC said they believe a new Nintendo Switch will come out this year, with improved features and performance.
Nintendo has not confirmed any plans for a Switch successor, but said it will continue to innovate and offer “new and unique integrated hardware-software products.”
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