Nintendo Rides Switch Sales During Lockdowns to Post Record Pandemic Profit
Nintendo broke its previous earnings record of 2008-09 when it made massive sales of its Wii and DS consoles.
Nintendo reported its highest annual profit on Thursday after virus crashes rocketed sales of its hit Switch console, but the Japanese gaming giant warned that the year of the pandemic would be difficult to repeat. Successive rounds of restrictions have helped video game companies be more fortunate when people are looking for indoor entertainment.
Net income rose 85.7 percent year over year to JPY 480.4 billion (the US $ 4.4 billion or approximately Rs 32,447 billion) for the fiscal year ended March, beating the company’s forecast of JPY 400 billion. -09 when it was making massive revenue from its Wii and DS consoles.
Sales increased by 34. According to Nintendo, it’s 4 percent to 1.76 trillion yen. With 28.8 million switch units sold, this is the highest number since the portable or television console was introduced four years ago. For the current fiscal year 2021-22, a net income of JPY 340 billion on sales of JPY 1.6 billion is forecast.
“Regarding the risk associated with COVID-19 … product supply could be impacted if production and shipping are impeded.” Nintendo “In addition, product production could be affected by barriers to sourcing parts, including increased global demand for semiconductor components.”
he said. The world is facing a chip shortage fueled by increasing demand for electronic devices during the pandemic and exacerbated by a fire in a Japanese factory and a drought in Taiwan. “The global semiconductor shortage could hit the electronics industry hard this year, Yasuo Imanaka, chief analyst at Rakuten Securities, told AFP
.The Switch was the top-selling console in the US in 2020, a year that saw record sales of video games, consoles, and accessories, according to the NPD Group, a market research firm. Nintendo forecast global sales of 25.5 million Switch units for this.
“Nintendo had strong sales and took full advantage of the lockdown demand,” Hideki Yasuda, an analyst at the Ace Research Institute in Tokyo, told AFP ahead of the results. “I don’t think the outlook is as pessimistic as Nintendo gained new game users during the pandemic,” he added. The lowest profit target will be hit when the Switch enters its pivotal fifth year.
Previously, sales of new Nintendo consoles tended to be highest in the third year after launch and then decline. New Horizons, the latest in the Animal Crossing franchise, was released in March 2020 as the COVID-19 pandemic caused many countries to issue strict bans.
the cited island that slowly transforms the landscape with a house, a garden, and eventually a thriving community of lovable cartoon animal neighbors. Its leisurely pace hit players all over the world, many of whom longed for a virtual escape from stressful restricted mobility. Nintendo’s first real-world theme park, a Super Mario Zone at Universal Studios Japan, also opened in March after months of delays in the pandemic but had to close a little over a month later due to new virus restrictions.