The revenues of Japanese gaming giant Nintendo are soaring as a coronavirus boom persists in video games. During the pandemic, the industry was enjoying runaway sales as lockdowns and limits on travel left millions looking for entertainment. Nintendo Switch console revenues helped to more than triple earnings in the half-year to the end of September. Rival Sony said last week that the demand for its PlayStation 5 for pre-release was higher than anticipated.
Nintendo Witnesses Massive Surge in Revenue Amid Global Lockdowns
One of the few industries that are doing well globally during the pandemic is the video games industry, said
Joseph Evans, head of technology at Enders Analysis. Every month since March, global industry revenues have exceeded $10bn (£7.6bn), with sales increasing each month, he said.
Nintendo is one of the companies riding the crest of this wave and, Mr. Evans said, its games have capitalized on various lockdown patterns. Animal Crossing games encourage users to engage in a virtual environment that appeals to individuals who are not able to meet physically. You can visit people in the game, and it becomes a way to socialize.
In the meantime, he said, his Ring Fit games tap into people needing to exercise while at home. In terms of hardware, the main seller for Nintendo was its Switch consoles, which shipped 12.5 million units in its first half. Sales of Switch apps have increased, with 14.27 million units moving to Animal Crossing: New Horizons. Nintendo said this added significantly to the overall increase in software revenues and drove sales of hardware. In the six months to 30 September, Nintendo pre-tax profit soared to almost 300 billion yen (£2.2bn), up from 85
billion yen in the same timeframe a year earlier.
However, in the year ending March 2021, Nintendo increased its estimate for Switch sales. It now plans to sell 24 million consoles, 26 per cent higher than the previous 19 million estimates.