Nintendo Posts Significant Jump In Profit And Sales For Fiscal Quarter Thanks To Switch Lite, New Games

Nintendo has experienced significant sales and profit growth in its second fiscal quarter, setting up a big holiday season for the video game company.

Nintendo reported Thursday operating income rose to $615 million (66.8 billion yen), beating analysts' estimates by a wide margin. Sales also beat projections, rising to $2.02 billion (271.9 billion yen).

A significant jump in Nintendo Switch sales compared to the same period in 2018 was credited for the positive results. Around 4.8 million units were sold, marking a 50% gain from last year. This is partly chalked up to the release of the Nintendo Switch Lite providing a cheaper alternative to the original model. It sold 1.95 million units between its release on Sept. 20 and the end of the quarter on Sept. 30.

“There are still many people to whom we have yet to communicate the appeal of Switch Lite,” President Shuntaro Furukawa said during a financial briefing in Osaka, Japan.

Software also saw a 48% jump from 2018 with 35.9 million units sold. “Fire Emblem: Three Houses” and “The Legend of Zelda: Link’s Awakening” were significant contributors with 2.29 million and 3.13 million units sold, respectively.

Despite Nintendo’s conservative outlook, analysts suggest revenue and operating income could surpass current projections. This would be thanks to increased sales of the Switch Lite and new games for the holidays including “Luigi’s Mansion 3,” “Pokemon Sword" and “Pokemon Shield.” Nintendo’s mobile game, “Mario Kart Tour,” is also expected to be a major contributor.