Japan’s Nintendo Co. Ltd expects to sell 24 million of Switch games consoles in the year ending March 2021, up from forecasted 19 million as COVID-19 fuels gaming demand, according to Reuters. The company also hiked its operating profit forecast by 50% to 450 billion yen as titles like “Animal Crossing: New Horizons” attracted new consumers to the Switch in the fourth year.

  • Heading into the year-end shopping season, Nintendo anticipates a continued demand for gaming  as coronavirus lockdowns and control measures have reduced available entertainment options
  • Although Sony Corporation and Microsoft will release the next generation consoles next week, Nintendo does not see the new devices having a direct impact on the mid-cycle Switch
  • Nintendo’s operating profit for July-September more than doubled from the same period a year earlier to 147 billion yen
  • Nintendo has been unwilling to raise forecasts despite strong sales of tis Switch system, arguing that the boost from consumes at home might be temporary
  • The company revised forecasts after the resolution of Switch production issues that affected the company earlier in the year

Nintendo stock NTDOY closed lower yesterday, down 2.23%