Japan’s Nintendo said on Thursday that its fourth-quarter profit soared by 200% due to the surge in demand for Switch consoles, and the title “Animal Crossing: New Horizons” transferred a record 13.4 million units in the first six weeks. .
Reuters calculations based on annual data show that the Kyoto-based gaming company reported operating profit of 89.4 billion yen (approximately 63.8 billion rupees) from January to March, breaking analyst estimates.
Nintendo doubted the Switch’s ability to attract consumers beyond its core users with the great success of “Animal Crossing: New Horizons” in the fourth year. The game has become the fastest-selling console game since its release on March 20.
Among consumers seeking escapism in an economy hit by the global coronavirus, the appeal of naming highlights the credibility of Nintendo’s game console manufacturer, while the company’s conservative management at the time frustrated investors, including many. Think this is a halfway attempt. mobile game.
In the year ending in March, Nintendo sold 21 million Switch consoles, much higher than its expected 19.5 million.
It is subdivided into 14.8 million units of hybrid household portable devices and 6.2 million units of Switch Lite, which is only handheld devices. The latter went on sale in September.
The popularity of the device and the impact of the coronavirus outbreak on the supply chain has caused a shortage of Switches around the world, preventing the company from taking full advantage of the pent-up demand.
Nintendo said it expects to sell 19 million Switch consoles this fiscal year. Its forecast is widely regarded as conservative.
The company stated that due to delays caused by the pandemic, production and transportation are “gradually restored,” but pointed to the risk of further disruption, including game development.
Nintendo has hardly provided any detailed information about the upcoming games, because studios all over the world are scrambling to alleviate the virus damage, and Nintendo may interrupt sales. Rival Sony has announced the postponement of high-profile releases.
© Thomson Reuters 2020
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