Today, Nintendo Co Ltd announced that it expects a 121 percent growth in profits in the year through March 2018. The profit is said to be driven by the growing demand for the company's new switch console.
Nintendo predicts that the profit will increase to JPY 65 billion ($583.85 million) from last year's profit of JPY 29.4 billion. The Japanese company has a target of selling 10 million Switch consoles in the current financial year. It doesn't seem impossible, given the fact that 2.7 million units were sold in last month alone when it was released globally.
"I was relieved by a strong start of the Switch," said Tatsumi Kimishima, President at Nintendo in a statement. "If the 10 million target is achieved ... that means the sales momentum would be close to the Wii," which is the company's most successful console until now.
However, the profit outlook was pretty low, which is why Kimishima thinks it won't be that easy to reach the profit target. Moreover, the company intends to spend more on the marketing of Switch consoles.
Many industry experts also believe that the Switch would match the success if the Wii, which sold more than 100 million units.
The strong start of the Switch has led to a 20 percent hike in the Nintendo's shares following its launch.
According to Hirokazu Hamamura, a gaming expert, The Switch consoles are doing so great as they are compatible with popular game engines, which can be accessed by any developers.
However, as per some analysts, the initial sales momentum will gradually fade away.