Nintendo Just Recorded Its Most Profitable Year Ever
If you needed more evidence that the pandemic was a game-changer for the gaming industry, here it is: Nintendo just posted its most profitable year yet.
According to reports, Nintendo saw an increase of ¥640 billion (approximately P280.9 billion) of operating profits in 2020. The company also saw a 34.4 percent increase in sales between April 1, 2020 and March 31, 2021 to ¥1.76 trillion (approximately P773 billion). While net profit had an 85.7 percent increase to ¥480 billion (approximately P210.8 billion).
The Nintendo Switch was a big driver of the results. According to data from Famitsu/Kadokawa, Nintendo sold six million units of the Switch in Japan just last year. What's even more astonishing is the fact that 500,000 of that was all thanks to sales during December alone. In total, the Nintendo Switch made up 87 percent of Japan's console sales last year.
"Regarding the risk associated with COVID-19, while the impact on business results for the fiscal year ended March 31, 2021 was limited, the supply of products might be affected if production and shipments are hindered," Nintendo said in a statement. "Other risk factors which are difficult to predict also continue to exist, involving areas such as development and marketing of products and services."
"In addition, the production of products might be affected by obstacles to the procurement of parts, including the increase in global demand for semiconductor components. The consolidated earnings forecast is based on the premise that we will be able to secure the parts needed for the manufacture of products in line with our sales plans," the company continued.
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