Switch it up: Nintendo profit triples on lockdown gaming boom
Nintendo’s profit tripled in the six months to the end of September as consumers splashed out on gaming during the coronavirus lockdown.
The Japanese tech giant posted a first-half operating profit of 291.4bn yen (£2.1bn), up from 94bn yen in the same period last year.
Nintendo has enjoyed booming demand for its Switch consoles, with gamers flocking to favourites such as Animal Crossing: New Horizons.
The Kyoto-based firm said it expected to sell 24m Switch consoles in the year to March 2021, up from its previous forecast of 19m. It also hiked its operating profit forecast by 50 per cent to 450bn yen.
Nintendo president Shuntaro Furukawa said production issues affecting the Switch earlier in the year had since been resolved, contributing to the increase in sales.
The Super Mario creator sold 12.5m consoles in the first half of the year, consisting of 8.4m hybrid models and 4.2m portable-only Switch Lite devices.
The positive outlook marks a departure from Nintendo’s conservative approach to forecasts. The company has previously been reluctant to raise its expectations, warning the coronavirus-related spike in sales could be temporary.
But fresh lockdown measures across Europe mean the company may continue to enjoy higher sales over the winter period.
Furukawa said the Switch had continued to sell well in October, and played down concerns that the upcoming release of new Xbox and Playstation models could harm sales.