Nintendo Extends Their Profit Streak Amid Shortages

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Nintendo Operating Profits Set to Jump 80%

According to 10 analyst estimates in a Refinitiv poll, Nintendo is expected to report an operating profit increase of 80% for the most recent financial quarter. This profit accounts for about 54 billion yen, roughly $505 million. Nintendo Switch units have been selling out around the world, with Nintendo having to increase production to meet the demand. While the coronavirus has had an awful impact on many things around the world, gamers seem to be more interested in a Nintendo Switch than ever. A Switch Online account is required for Switch fans to play with each other and access the SNES and NES libraries at the cost of $20 per year.

Nintendo switch coronavirus

While Nintendo’s expansion to mobile has broadened their market and appeased investors, it’s clear that the Nintendo Switch is their bread and butter with how quickly they’re selling everywhere. Pokemon Sword & Shield helped move units at the end of 2019 but Animal Crossing: New Horizons blew them out of the water when it released in March. The most recent financial quarter that is continuing their profit streak includes January until March, including the first twelve days of Animal Crossing: New Horizons sales.

Nintendo Switch sales aren’t slowing down, even with next-gen Xbox and PlayStation consoles around the corner. The hybrid Nintendo console continues to be operating at Wii level success, showing just how relevant Nintendo always has been and will continue to be. According to Serkan Toto, the founder of game industry consultancy Kantan Games, Nintendo “could sell multiples of what is in the inventory at the moment.” While Nintendo supplies were on pause for a while due to COVID-19, the company increased their order when they were able to so they could keep up with global demand.

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Source: Reuters