Japanese gaming group Nintendo has increased its profit forecast for the current financial year due to strong demand for games for its Switch consoles.
Nintendo expects operating profit to rise to 500 billion yen (3.1 billion euros) in the fiscal year ending in March. The company previously assumed 450 billion yen (2.8 billion euros).
In the past quarter, profit came in at 94.5 billion yen and revenue at 334.9 billion yen, above expectations from market experts. This year, the company is benefiting from high demand for the latest game in the Zelda video game series. This also boosts demand for the Switch game consoles.
Profits were also boosted by the highly successful Super Mario movie that hit theaters earlier this year. As a result, royalty income increased significantly.
The Switch game console, Nintendo’s most important device, has been on the market for more than six years. During the corona pandemic, Nintendo was unable to produce the game consoles fast enough to meet all the demand. That demand has decreased considerably this year.
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