Nintendo Raises Forecasts 26% on Wii, DS Sales

Nintendo raised its profit predictions for the year by a not-insignificant 26 percent, prompting the console maker's stock to surge on the Osaka Securities Exchange.

According to the Nintendo Co., Ltd. report, net income is set to climb 59 percent up to 410 billion yen ($3.8 billion) for the fiscal year ending in March 2009.

Nintendo credits strong sales of the Wii and DS systems for the increase. Nintendo's new estimate for DS sales pegs the system at over 30.5 million worldwide, a healthy increase over the previously estimated 28. The Wii is set to sell 26.5 million units instead of 25 million.

Also credited were strong software sales for both systems and exchange rates more favorable to Japanese companies. The announcement contradicts recent analyst predictions that DS sales were due to fall off, sparking rumors of a new DS.

The company's announcement comes less than a day after rival Sony CEO Howard Stringer confessed that Nintendo's business plan for the Wii "may be superior."