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Thanks to The Legend of Zelda, Nintendo’s new Switch console seems to have rolled off at a record-setting pace.
The Kyoto-based games company said its net loss for the fiscal fourth quarter shrank to ¥394m ($3.5m) from a year-earlier loss of ¥24.05bn as it sold a stronger-than-expected 2.74m Switch consoles in the first month since its March debut.
Quarterly revenue more than doubled to ¥178bn, buoyed also by strong demand for the hugely popular launch title for Switch – The Legend of Zelda: Breath of the Wild – which sold 2.76m copies.
Analysts have said the success of the new console would be critical to determining the future of the group’s hardware strategy. The release of the Switch had followed Nintendo’s first serious foray into mobile gaming with the December launch of Super Mario Run.
Despite strong reviews and initial sales, however, Nintendo offered a very conservative guidance for the new financial year through March 2018.
It projected that annual net profit will fall 56 per cent to ¥45bn in the absence of proceeds from the $661m sale of its majority stake in the Seattle Mariners baseball team. That fell below analyst forecasts for a net profit of ¥92bn.
For the full year, the company expects to sell 10m units of the Switch console and 35m of Switch software.