Nintendo Grown Profits by 428%

Nintendo Grown Profits by 428%

The video game industry has clearly benefited from the current coronavirus pandemic, as shown by Nintendo’s 428% massive leap of their operating profits in the first fiscal quarter of 2020. 

Nintendo reported an operating profit of $1.4 billion which shattered expectations and showcased a huge increase in their reported profit from the same quarter last year.

Meanwhile, their net sales have also shown a respectable increase of 108% from last year. Most impressively, the sales of the immensely popular Nintendo Switch and Switch Lite have grown 167% in this quarter, increasing to 5.68 million units sold.

These numbers represent the growing demand for gaming in the resulting lockdowns during the ongoing pandemic. 

Animal Crossing: New Horizons

In particular, Nintendo has been on the receiving end of a large boost. Their acclaimed release “Animal Crossing: New Horizons”  – which was released in March – has become a hit among players looking for comfort during this troubling time.

Nintendo has sold over 22 million copies of the game, surpassing the sales of  “Super Smash Bros Ultimate” which sold over 12 million copies as well as the immensely popular Zelda Breath Of the Wild that sold a total of 19 million units since its debut on the Switch and Wii.  

The game arguably is facing such success because it offers players much-needed escapism in the wake of the Covid-19 pandemic. In the game, things are much simpler than in real life – for example, money falls from the trees on your island paradise, and a talking raccoon can approve your mortgage. 

Animal Crossing: New Horizon tasks the players with creating an Island Utopia at their own pace, and with their own creative flair. Unlike a traditional video game wherein there’s a clear objective that players must achieve through hours of grind, Animal Crossing: New Horizon takes a non-traditional path. The game allows the players to step into the shoes of a customizable character who moves to a deserted island after purchasing a package from Tom Nook, a staple character of the series who has appeared in every Animal Crossing game. 

Once you assume the control of your very own island, you can explore and grow it a nonlinear fashion, gather and craft items to grow your island. It’s a life simulator without the worries and tensions of real life. There are a few challenges, such as paying off easily accumulating debt, but they aren’t hard to overcome and offer respite from the hard reality of these situations in modern life. 

The game follows real lifetime progression, so every minute in the game is a minute in the real world. In addition, Animal Crossing lasts indefinitely, there is no strict ending point, and players can call it a day whenever they feel like it. This gives players a sense of control over their virtual lives, where they might not have it in reality. 

Sony, despite their 1% decline in profits this quarter, has received a boost in gaming sales, which have risen 82% from last year. 

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