Nintendo Raises Guidance on Stronger Sales of Switch Console, Software

By Kosaku Narioka

Nintendo raised its fiscal-year earnings forecasts as it expects stronger sales of its Switch console and software, after reporting higher profit in the nine months ended December thanks partly to the success of "The Super Mario Bros. Movie."

The Japanese videogame maker Tuesday projected that net profit for the fiscal year ending March would climb 1.7% to Y440.00 billion ($2.96 billion), compared with its previous view of a 3.0% decrease, and revenue would increase 1.8% to Y1.630 trillion, compared with its previous forecast of a 1.4% fall.

The company said it expects to sell 15.5 million Switch consoles this fiscal year, up from its previous forecast of 15.0 million units, and 190.0 million copies of Switch software, compared with its previous forecast of 185.0 million copies.

Net profit in the nine months ending Dec. 31 increased 18% from a year earlier to Y408.04 billion as revenue grew 7.7% to Y1.395 trillion.

Nintendo is looking to replicate the success of "The Super Mario Bros. Movie." The box-office hit had a positive effect across the business, Nintendo said, and led to increased software and hardware unit sales, its bread-and-butter business.

Nintendo shares hit new highs in recent weeks, bolstered by expectations the Japanese game giant will continue its solid earnings momentum.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

February 06, 2024 02:17 ET (07:17 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.