holiday season: While the forecast console numbers would mark only a slight improvement over last year's results, games deliver most of Nintendo's profit, and software sales may climb about 23 percent. ; Achieving those numbers could prompt Nintendo to revise its conservative earnings outlook for the year ending next March, according to The Japan Times. The Switch's performance in its third holiday season will also hold clues for the console's longevity in an industry where hardware is typically overhauled every five years and rivals Microsoft Corp. and Sony Corp. are already planning new machines for the end of 2020. The company will probably sell 9.46 million units of Switch hardware and 64.73 million units of software in the quarter ending in December, according to analyst estimates compiled by Bloomberg. This is typically where sales begin to peak out, but it looks like the Switch may have a longer life cycle, said Kazunori Ito, an analyst at Morningstar Investment Services in Tokyo. Nintendo designed the console so that it can be used on the big living room screen as well as on the go, and in September it also introduced a cheaper Switch Lite focused on expanding the mobile market. With a desktop console and a portable player in a single machine, Nintendo has a very effective platform for selling game software.
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Tagged under holiday season, switch hardware topics.