Japan’s Nintendo stated on Thursday it anticipates to sell 18 million Switch console systems in the financial year through March.
The Kyoto-based video gaming company said it sold 16.95 million systems in the year just ended, just listed below its forecast of 17 million systems.
At the end of January, Nintendo revised down its forecast of 20 million systems that had been made before Chief Executive Shuntaro Furukawa took up the role in June.
Nintendo, which has a credibility for making conservative forecasts, sees operating profit climbing 4.1 percent to JPY 260 billion ($2.33 billion) in the existing fiscal year. That compares with an average forecast of JPY 342 billion from 20 analysts, according to Refinitiv data.
Nintendo’s stock price has climbed on news it is preparing to offer the hybrid home-portable Switch console in China with Tencent.
That is developing hopes the two business will likewise partner on mobile games. Mobile and PC gaming in China overshadows the market for consoles, where development has been pegged back by regional guidelines.
Nintendo’s push into mobile video gaming is yet to deliver a major hit, although analysts point to Mario Kart Tour, established with DeNA and due for release this summertime, as a possible competitor.
Other tailwinds for Nintendo’s share rate include media reports it is preparing a low-price version of the Switch and a games pipeline that include two full Pokemon titles.
The market is facing a shake-up with established console video gaming companies like Nintendo and Sony exposed to competitors from brand-new entrants like Alphabet Inc’s Google offering browser-based games streaming services.
Nintendo’s shares closed up 1.3 percent ahead of the revenues announcement. Its share price has actually increased 32 percent year-to-date, pushing its market capitalisation above JPY 5 trillion.