Switching to bigger profits

The ongoing success of the Switch has seen Nintendo's market capitalisation hit 5.44 trillion yen ($48.9 billion), which sees the Kyoto giant overtake rival Sony for the first time in almost a year. This new market cap figure is the highest posted by Nintendo since October 2008. 

Developments on the Tokyo Stock Exchange saw Nintendo shares rise 3 percent to 38,580 yen before closing at 38,440 yen. It is believed that investors made a dash for Nintendo shares after it was announced that shipments of the Switch will be ramped up to meet the incredible global demand.

Sony's 60 million-selling PS4 system has helped the multimedia giant - which also has interests in consumer electronics, movies, music and TV - keep its share value high, but the Japan-based Ace Research Institute feels that the Nintendo will be in a stronger position as the year progresses, and that as more Switch games arrive in "the end-of-year sales season" the console "will start to eat into demand for the PS4."

Analysts also expect Nintendo to post a net profit of 93.1 billion yen - which is double the company's own projections - for the current fiscal year, which ends in March 2018. In short, it's a good time to be a Nintendo shareholder.

[via asia.nikkei.com]