Nintendo forecasts Switch console unit sales of 18 mln this year (updated)

DeNA Co

25/04/2019 08:20

* Nintendo sees 125 mln Switch software unit sales this year
    * Sold 16.95 mln Switch hardware units in year just ended
    * That was just below Nintendo's forecast

 (Adds details of earnings)
    By Sam Nussey
    OSAKA, April 25 (Reuters) - Japan's Nintendo Co Ltd  7974.T 
said on Thursday it expects to sell 18 million Switch console
units in the financial year through March.
    The Kyoto-based gaming company said it sold 16.95 million
units in the year just ended, just below its forecast of 17
million units. 
    At the end of January, Nintendo revised down its forecast of
20 million units that had been made before Chief Executive
Shuntaro Furukawa took up the role in June. 
    Nintendo, which has a reputation for making conservative
forecasts, sees operating profit climbing 4.1 percent to 260
billion yen ($2.33 billion) in the current financial year. That
compares with an average forecast of 342 billion yen from 20
analysts, according to Refinitiv data. 
    Nintendo's stock price has climbed on news it is preparing
to sell the hybrid home-portable Switch console in China with
Tencent  0700.HK .  urn:newsml:reuters.com:*:nL3N221025
    That is creating hopes the two companies will also partner
on mobile games. Mobile and PC gaming in China dwarfs the market
for consoles, where growth has been pegged back by local
regulations. 
    Nintendo's push into mobile gaming is yet to deliver a major
hit, although analysts point to Mario Kart Tour, developed with
DeNA  2432.T  and due for release this summer, as a possible
contender.
    Other tailwinds for Nintendo's share price include media
reports it is preparing a low-price version of the Switch and a
games pipeline that include two full Pokemon titles. 
    The industry is facing a shake-up with established console
gaming companies like Nintendo and Sony Corp  6758.T  exposed to
competition from new entrants like Alphabet Inc's  GOOGL.O 
Google offering browser-based games streaming services.
    Nintendo's shares closed up 1.3 percent ahead of the
earnings announcement. Its share price has risen 32 percent
year-to-date, pushing its market capitalisation above 5 trillion
yen. 
($1 = 111.8200 yen)

 (Reporting by Sam Nussey; Editing by Muralikumar Anantharaman)
 ((sam.nussey@tr.com; https://twitter.com/SamNusseyRTRS;
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