India, July 11 -- Nintendo Co. introduced a cheaper version of its portable Switch gaming console, as the Japanese company seeks to expand the potential market for games.

The Switch Lite will retail for $199.99, or $100 less than the original device, in time for the all-important holiday shopping season. The new console will be released September 20 and comes in yellow, gray and turquoise, the company said in a statement. Nintendo's shares climbed as much as 4.5% in Tokyo.

Nintendo shares have rebounded this year on optimism that the cheaper Switch, a stronger pipeline of games and a potential entry into China will help overcome last year's missteps and broaden Nintendo's customer base beyond dedicated fans. Still, analysts have struggl...