TOKYO, Aug 29 (Reuters) - Japan's Nintendo Co (7974.OS: Quote, Profile, Research, Stock Buzz) raised its 2008/09 profit outlook by 23 percent beyond market expectations on strong sales of its Wii video game console and DS portable player, prompting its shares to leap more than 8 percent.
Nintendo is leading a three-way game console battle against Sony Corp's (6758.T: Quote, Profile, Research, Stock Buzz) PlayStation 3 and Microsoft Corp's (MSFT.O: Quote, Profile, Research, Stock Buzz) Xbox 360. It also hiked Wii and DS sales volume forecasts by 6 percent and 9 percent, respectively.
The Wii, launched in late 2006, continues to enjoy strong global demand thanks to its easy-to-learn motion-sensing controller, low price and innovative titles such as the "Wii Fit" exercise game.
Nintendo said it now expects a group operating profit of 650 billion yen ($5.96 billion) in the year to March, up from its previous forecast of 530 billion yen, helped also by a softer yen.
That sharply beat a 605 billion yen profit projection in a poll of 20 analysts by Reuters Estimates. The company hiked its dividend forecast of 1,680 yen in 2008/09, up from 1,370 yen it had expected in April, and lifted its half-year operating profit by 17 percent to 245 billion yen.
Unlike many other industry sectors, the video game market has been little affected by the economic slowdown, soaring oil prices and sluggish consumer spending.
Nintendo said it now targets to sell 26.5 million units of Wii consoles and 30.5 million DS players this business year.
Link: http://www.reuters.com/article/marketsNews/idUST9782620080829?rpc=401&
That means: Wii up 1.5 million and DS up 2.5 million on previous forecast.
Going by history - they will raise the forecast one more time.
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