It's been a good day, as anticipated, for Nintendo. It unveiled its Q2 financial results that confirmed what was widely believed - that the Switch has started well. With the new system joined by optimism around Nintendo Mobile and also the anticipated Pokémon bump for 3DS in the Holiday season, share value climbed. The raw numbers also tell a positive story, with Switch sales estimates getting substantial increases.
Still, you don't need to be an industry analyst to know that Nintendo left some Switch sales on the floor due to stock issues in the early days. The situation is starting to ease, but in the first few months the system was very hard to find in various territories; speaking to the media following Nintendo's financial reports company President Tatsumi Kimishima acknowledged this. The Wall Street Journal (paywall) reports that Kimishima-san apologised for that situation and admitted that the company had been over-cautious. He reiterated, however, that logistical issues were being overcome to get enough systems into stores.
Thanks to our component suppliers, who even opened up new production lines for the Switch, our ability to ship the console has improved drastically.
Looking ahead, Kimishima-san apparently spoke optimistically about the company's business, including the goal of Mobile titles like Animal Crossing: Pocket Camp winning over more consumers that would then shift over to Switch. He stated that the company will aim to strengthen the console's appeal further into 2018.
We will introduce more ways to have fun with the Switch next year, and we expect those will further strengthen demand for the Switch.
Some believe that the Switch, with the necessary manufacturing issues resolved, could truly take off in the next financial year. Hideki Yasuda, an analyst at Ace Research Institute, is quote by WSJ as saying he thinks "at least 25 million" Switch systems could be sold in the next financial year starting on 1st April 2018.
It's certainly been a strong year so far for Nintendo; here's hoping that positive momentum will continue.