Nintendo (7974.T) / (ADR)(NTDOY) has lifted its Switch 2 sales expectations for the successor to its blockbuster Switch console, signalling confidence that the device’s early momentum will extend into the key holiday trading period, Bloomberg reports.

As one of the leading consoles in Japan and around Asia, as well as further afield in recent years, sales are booming across the region.

The Kyoto-based group now forecasts sales of 19mn units of the new JPY70,000 (about $450) device in the year to the end of March, up from a previous target of 15mn. It also upgraded its full-year operating profit guidance by 16% to JPY370bn and increased its dividend payout ratio to 60%.

The revised outlook underscores the strength of one of the most closely watched consumer electronics launches of the year. For the July to September quarter, Nintendo posted operating profit of JPY88.25bn on revenue of JPY527.2bn, with cumulative Switch 2 sales reaching 10.36mn units by the period’s close, Bloomberg added.

The Switch 2 marks Nintendo’s most expensive hardware platform to date and represents the company’s principal long-term base for its extensive roster of first-party franchises. Early demand has outstripped supply in core markets including Japan and the US, with the console breaking internal sales records and comfortably surpassing initial market expectations.

Analysts expect momentum to build further in the current quarter as Christmas approaches and holiday purchases gather pace. To meet demand, Nintendo has instructed manufacturing partners to raise production, with the company targeting output of 25mn units by March, the report adds.