Japanese gaming giant Nintendo has swung back into profit thanks to the success of the new Switch console it released in March. Nintendo beat analyst expectations by posting first-quarter operating profits of 16.21bn yen (£111.39m), compared to a loss of 5.13bn yen in the same period last year. The Kyoto-based company sold 1.97m units of the Switch console in the three months to the end of June, down from the 2.74m it sold in its first month. However, it has reiterated its target of selling 10m units in the year. The demand for the console has helped push Nintendo’s share price up dramatically since it was launched. Nintendo shares have risen more than 55pc since March 2, the day before the Switch was released.
The company is working on diversifying its portfolio, having announced that it is building Nintendo theme parks and taken its first steps into mobile gaming with the release of the Super Mario Run game last year. The decision followed the enormous success of the Pokemon Go mobile game, which was developed by Niantic, a US company in which Nintendo holds a stake. Demand for the Switch has been so strong that the company reportedly doubled its planned production in March, before ordering a production increase two months later in order to to have more consoles ready for the holiday season. In the UK, video game retailer Game Digital blamed a low supply of the console for a profit warning which sent shares tumbling 36pc.