Dream Team: Switch & Odyssey Sales Driving Up Nintendo Revenue
The unstoppable ascent of Nintendo Switch continues.
Nintendo has increased sales projections for the Switch following a 261% company profit rise, according to a CNBC report. Earnings for the third quarter of 2017 surpassed expectations, totalling ¥482.97 billion/$4.4 billion USD instead of ¥407.86 billion/$3.75 billion USD, which raises forecasted sales of Nintendo Switch up to 15 million.
To date, Switch sales have reached a staggering 14.86 million. Over two million units have been purchased in Japan, and in Germany, the hybrid console has outpaced the Wii, selling 600,000 units since its launch. In less than a year, Switch lifetime sales figures have officially exceeded those of the Nintendo Wii U, which released six years ago. And though the Switch is well behind Nintendo’s best-selling Wii, it has gone down in history as the quickest selling home console in the United States, beating the Wii by 800,000 units.
What’s the secret to such seemingly unstoppable success? Nintendo of America President Reggie Fils-Aimé says it’s “value proposition as well as the compelling content” in his interview with Fortune. Nintendo of France’s Philippe Lavoué agrees, pointing towards the company’s solid lineup of first party Switch games (particularly Super Mario Odyssey) and other exclusives. Another reason is its open attitude towards third-party titles, particularly indie games, smaller but perfectly shaped substrates that are catalysing the sales process. Then there’s the Labo, which is splitting consumer attention between purely digital experience and interactive cardboard toys. Following its announcement, Nintendo shares climbed.
Nintendo is aiming to ship 25-30 million Switch units this year. If the current momentum can be sustained, I suspect Nintendo may be met by this favourable fate.