It’s like good, old times at Nintendo. Their recent forecast has Nintendo making 120 billion yen ($1.06 Billion) in profit through the end of 2017, nearly double the 65 billion yen ($572 million) it forecasted 3 months ago. These numbers make 2017’s 3rd quarter the best they have been since 2010 when Nintendo was still selling the Wii and DS consoles. The major jump in profits are thanks to Nintendo’s new console, the Switch, that went on sale this March. For Nintendo, the switch was a very big risk following the lack luster performance of the Nintendo Wii-U. Nintendo struggled for a few years with its first try at a hybrid console that would allow gamers to pay at home, as well as on the go with the same gaming system. However, their second attempt, the Nintendo Switch, has greatly exceeded expectations. Nintendo forecasted 10 million sales of the new system, but following this new earnings report, Nintendo is optimistic that it will see at least 14 million systems sold through March 2018.
Nintendo’s new gaming console is not the only thing driving up its earnings. Nintendo has been releasing classic titles for its new system. The legend of Zelda became one of the bestselling games in history, and the same is expected for Super Mario Odyssey which released last week. Now Nintendo has raised its forecast of game sales from 35 million to 50 million for 2017. But Nintendo has bigger moves coming soon. The company is setting a foot hold in the mobile gaming sector, releasing classic titles you can play on your phone. Analyst believe that the Switch will be the leading profit driver for Nintendo for the next 3-5 years, but following that its move into mobile gaming will be hard to stop. For years Nintendo has been losing the “Console Wars”, with its low sales when compared to Microsoft’s Xbox One and Sony’s PlayStation 4 sales. But Nintendo has changed tactics, it released a new, major product and effectively implemented its marketing to boost its sales as well. Many companies struggle, but Nintendo learned from its mistakes and worked hard to become an industry leader once again.
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