Nintendo Co. (NTDOY) shares hit a nine-year high in Tokyo Friday on reports the company will up the production of its Switch console.

The move by the Japanese company comes on the heels of strong demand for its new console. Nintendo in July said it sold 1.97 million units of its hybrid Switch consoles in its first quarter through the end of June.

Nintendo shares rose 2.66% Friday in Tokyo, to ¥43,670, their highest point since March 2008. Shares have gained more than 77% since the beginning of 2017.

Nintendo is said to be increasing its production to 2 million units per month from an undisclosed production rate, according to reports from Digitimes.

The company had forecast in the first quarter that it would ship 10 million consoles in FY2018 ending in March, which would mean that production stood at somewhere between 800,000 and 1 million units per month.

Sources told Digitimes that Nintendo was expecting to ship about 20 million units this year.

Last month, Credit Suisse said it sees Nintendo almost doubling the number of Switch consoles sold to 130 million units through 2022, up from Wall Street's projected 70 million.

"As Nintendo's Switch is a unique game platform for use as either a console or handheld, there was initially some uncertainty over whether it's sales cycle would more closely resemble that of a console or handheld," Credit Suisse analyst Keiichi Yoneshima wrote in a note obtained by Barron's. "Although the Switch is currently categorized as more of a console, we expect it to sell like a handheld."

Yoneshima believes sales will be powered by consumer's desire to own the console based on its portable and handheld characteristics.

"We now expect the Switch to achieve peak sales about five years after launch like a typical handheld game device. We also raise our peak-year sales forecast," Yoneshima noted.

The analyst upped his estimates for peak year unit shipments to 31 million from 25 million.

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