Nintendo plans to increase production of its Switch console, after initially lowering its sales forecast due to component shortages.
Nintendo shipped 21 million Switch consoles in the year ending March.
It then lowered its FY23 forecast to just 19 million units in November, due to parts shortages, but has since revised this.
Given the Switch is six years old, some analysts are questioning whether the demand will be there.
“Sales in the recent holiday season were not that strong even with improved supply,” said Kenji Fukuyama, an analyst at UBS Securities.
“People will soon start speculating about next-generation hardware and are likely to refrain from buying the old system. A slowdown in Switch sales momentum is unavoidable.”