Nintendo doubles profit outlook on Switch sales

Japanese videogames maker Nintendo, already expecting its highest earnings in seven years, almost doubled its full-year operating profit forecast on Monday as supply shortages for its new Switch games console began to ease. Demand for the hybrid home-portable Switch has led to a near-doubling of Nintendo's stock price to nine-year highs since the device's March launch. Sales have exceeded the company's initial estimate, outstripping those of predecessor Wii U, and leaving suppliers scrambling for parts. Demand for the hybrid home-portable Switch has led to a near-doubling of Nintendo's stock price to nine-year highs since the device's March launch'We've boosted Switch production to meet strong demand as it was difficult for customers to buy the consoles at retail stores,' Nintendo President Tatsumi Kimishima said at an earnings briefing, adding the firm misjudged demand. The Switch's early success has fuelled hopes for strong earnings in the coming years, as solid demand for new consoles is widely regarded as a prelude to strong sales of high-margin game software over several years.