The Wii broke the Nintendo Co. Ltd. NTDOY, +2.18% 7974, +1.22% curse of having every new console sell less than the one before it, and the Japanese gaming giant’s latest earnings report suggests that with their latest console, the Switch, it could happen again.

The Japanese electronics giant crushed analyst estimates and posted revenue of 154.07 billion yen in its fiscal first quarter, a nearly 150% year-on-year rise, boosted by strong sales for the Switch and its new games.

Since its introduction in March, Nintendo’s hybrid gaming console has sold over 4.7 million units as well as 13.6 million games. In fact, demand is so strong for the Switch that Nintendo has been unable to keep up and has been struggling to keep the console on shelves.

Because of its production struggles, Nintendo has kept its sales forecast for the Switch unchanged, predicting 10 million units sold by March.

Investors are liking what they see, with Nintendo’s stock rising about 60% since March 3. The steady climb Nintendo stock has seen this year is a marked change from the dramatic spikes and pullbacks it saw in the second half of 2016, including a 112% rise after the July 2016 release of the PokemonGo mobile app and a 29% bounce after Super Mario Run was released for Apple Inc.’s AAPL, -3.17% iOS in December of 2016. Both of those gains were short-lived.

Sales: Here’s what the Switch has to live up to

Since the Wii’s successful 2006 release, Nintendo has continued to try to innovate with interactive hardware elements, such as wireless motion and touch controls, rather than attempt to compete with Sony Corp. SNE, +1.73% and Microsoft Corp. MSFT, -1.24% on processing power and high-end graphics.

While that worked well with the Wii, it wasn’t such a success with Nintendo’s follow-up, the WiiU. That system ended up being Nintendo’s worst-selling home console to date as a puny lineup of original games and inability to attract desirable third-party releases kept hard-core gamers away.

With the Switch, Nintendo has once again ignored the arms race of computing power and is focusing on an innovative form factor that combines a home-gaming console and mobile device.

Specs: How Switch stacks up against other consoles

The 6.2-inch LCD tablet with detachable controllers can be used on the go, but it can also be inserted into a docking station for use on a television. Initial reviews are mostly positive, though some complain about battery life, storage capacity and lukewarm performance compared with devices built solely for home or mobile gaming.

Nintendo has also bucked console convention by making the Switch a gaming-only gadget. Like the Wii and the WiiU, people can’t use the Switch as an all-in-one home entertainment unit to watch movies and television shows, unlike the Sony and Microsoft consoles that offer Blu-ray disc players and the ability to watch online content from services like Netflix NFLX, -0.05% and Hulu.

Games: Where the Switch may best its competitors

But Nintendo does have a few aces up its sleeve, most notably its catalog of original games.

While PS4 and Xbox One fans mostly have access to the same game titles on either machine, if you want to play a Mario or Zelda game on your TV, you need Nintendo hardware. “The Legend of Zelda: Breath of the Wild,” for instance, was launched along with the Switch to universal acclaim.

However, given the new Zelda game is also available on the older WiiU console, with nearly identical graphics, some are left wondering if fans will want to run out and plunk down $299 for the Switch.

Since its release on March 3, the Switch has been hard to find. A senior director from GameStop has called the early sales “phenomenal” and says it could eclipse the Wii in sales. But the WiiU debuted to solid sales numbers, as well (3 million units in the first quarter) before quickly falling out of favor.

Nintendo fans, while not as rabid as, say, Apple devotees, are always good for a system launch. The Switch will have to maintain that excitement like the Wii did a decade ago to make it a true hit.