Nintendo's Profit Grew By 33% Last Year Thanks To Sales Of Switch Consoles
Japanese game console and video game maker Nintendo increased profit by 33.3% in the fiscal year ended March 31, thanks to increased demand for switch consoles and the latest game in the Animal Crossing series.
According to the company's press release, net profit in the last financial year was 258.6 billion yen ($2.4 billion) compared to 194 billion yen in the previous financial year.
Operating profit jumped 41.1% to 352.3 billion yen from 249.7 billion yen. The company's revenue increased by 9%, to 1.3 trillion yen from 1.2 trillion yen. In the fourth fiscal quarter alone, Nintendo's profit tripled.
Nintendo predicted in late January that sales of Switch consoles, the company's flagship product, would be less than 2 million in January-March. However, the company managed to sell more than 3 million consoles during this period, bringing the total number of Nintendo Switch consoles sold, including the more budget-friendly Switch Lite version developed for the game in portable mode, to 21.03 million for the last fiscal year.
Besides, Nintendo sold 13.4 million copies of Animal Crossing: New Horizons in the six months since the game's release on March 20, making it one of the best-selling games for switch consoles. This was facilitated by the forced presence of people at home in connection with the coronavirus pandemic.
In the current fiscal year, which ends in March 2021, Nintendo expects a slight decline in both profit and revenue. The company expects to sell 19 million Switch consoles by the end of the year.
In a press release, Nintendo notes that production and transportation delays caused by the COVID-19 pandemic appear to be gradually disappearing, but the company does not rule out possible problems with purchasing the necessary components this year.