NINTENDO Co, maker of the best-selling Wii game player, increased third-quarter profit 63 percent and raised its annual revenue forecast after the console outsold Sony Corp's PlayStation 3 and Microsoft Corp's Xbox 360.
Bloomberg News reported that Nintendo's net income rose to 126.5 billion yen (US$1.2 billion) in the three months ended December 31, while sales gained 50 percent to 621.6 billion yen.
Figures, derived from nine-month results reported yesterday by the company, surpassed analysts' estimates.
Nintendo raised its operating profit and sales targets for the third time this year after introducing the Wii Fit board, which tests users' balance and fitness with activities including yoga and soccer.
The Wii will probably help Kyoto-based Nintendo overtake Sony as the world's largest maker of game consoles next fiscal year, according to Daiwa Institute of Research Ltd.
"Investors will want to hold on to Nintendo's stock in the longer term because sales of the Wii and portable DS players are expected to remain strong," said Takeshi Koyama, an analyst with Tokyo-based Mizuho Securities Co who rates Nintendo a "buy."
Nintendo forecast operating profit, or sales minus the cost of goods sold and administrative expenses, will double to 460 billion yen in the year to March 31 after predicting 420 billion yen in October. Revenue will probably climb 69 percent to 1.63 trillion yen, 5.2 percent higher than the earlier estimate.
The company was expected to have third-quarter net income of 97.7 billion yen and sales of 559.8 billion yen, according to the average of three analyst estimates compiled by Bloomberg.
The full-year forecasts were in line with the average of 20 estimates.
Nintendo shares fell two percent to 53,100 yen at the close on the Osaka Securities Exchange, before the company reported earnings.
The shares traded in Germany rose 13.50 euros, or 4.1 percent, to 343 euros in Frankfurt.
The company yesterday increased its annual Wii sales forecast 5.7 percent to 18.5 million consoles, and the outlook for Wii software sales by 19 percent to 115 million units.