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Nintendo profits skyrocket 428% as more people spend time gaming in their homes

Animal Crossing is a huge factor in that success.

animal crossing on nintendo switch
Image: Unsplash

Nintendo’s newest Animal Crossing game quickly became one of the company’s biggest hits as players worldwide used it to escape the reality of being stuck in lockdown.

Thursday, the Kyoto-based Japanese video game company Nintendo stated that their first-quarter profits hit 428%, in a surge that shows exactly how individuals are using video games as a means to escape the real world during the Covid-19 pandemic. The gaming giant has made $1.4 billion in operating profits during the April-June quarter, leaving analysts in awe at the reported increase when compared with the same quarter from last year.

The Covid-19 pandemic that is currently spreading across the world has forced many individuals to stay locked up indoors for extended periods. This has led to an increase in net sales of 108%, for Nintendo, with the sales of their popular Nintendo Switch and Nintendo Lite consoles growing by approx. 167%. With that said, Nintendo is not the only company that has seen sharp increases in profits. Activision Blizzard and Take-Two Interactive are also reporting great results.

While the large numbers show how demand for gaming has grown during the pandemic, they are also a result of Nintendo’s established craftsmanship. The company has created games that offer players a way to socialize without exposing themselves to the dangers of the real world.

The extremely popular Animal Crossing: New Horizons game is proof of this, as the company has sold over 22.4 million copies. To put this into perspective, the sales of the new Animal Crossing game are well beyond that of Super Smash Bros. Ultimate, released in 2018, leading to a digital sales increase of approx. 230% for Nintendo.

Unfortunately, the pandemic has not lead to sales and revenue increases for all Japanese companies, as Sony reported a 1% drop in its profits in the first-quarter results. However, despite this decrease, the console manufacturer Sony also has received a boost from gaming, with sales increasing by 82% year-on-year, to 91 million units.

Analysts estimate that this trend will continue as more and more countries may reinstate general lockdown procedures to account for the increase of Covid-19 cases.

What do you think? Have you found yourself playing more games in recent months? Let us know down below in the comments or carry the discussion over to our Twitter or Facebook.

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