ENTERTAINMENT

‘Animal Crossing’ boosts Nintendo profits as demand for games soars

May 7, 2020, 6:40 AM
Animal Crossing...
(Photo by Drew Angerer/Getty Images)
(Photo by Drew Angerer/Getty Images)

    (CNN) — The success of the Nintendo Switch during the coronavirus pandemic propelled the Japanese video company to a banner year.

Nintendo said on Thursday that it made 352 billion yen ($3.3 billion) in operating profit for the fiscal year ended in March — a 41% surge from a year ago, and the highest in nine years. Profit in the three months to March more than tripled compared with the previous quarter.

Sales were driven this spring in large part by the breakout success of “Animal Crossing: New Horizons,” a game set on an island utopia. The company sold more than 13 million units of the game in its first six weeks of release.

Animal Crossing” and the hardware it runs on, the Nintendo Switch game console, have been in high demand as people worldwide remain stuck indoors because of efforts to contain the spread of the coronavirus. The Switch, which was first released in 2017, has sold out on several websites.

The Kyoto-based company also ran into supply issues with the Switch this spring because of factory shutdowns in China. Those closures triggered component shortages and slowed output at factories in Vietnam, where Nintendo manufacturers the console. That problem prompted the firm to briefly suspend Switch shipments to Japan in April.

Still, Nintendo said hardware sales of the Switch and the portable version, the Switch Lite, surpassed 21 million units during the last fiscal year. That marked a 24% increase year-on-year and was well above forecasts. The games “Pokémon Sword” and “Pokémon Shield,” which released late last year, were also bright spots, selling more than 17 million units.

“It is incredible for hardware going into its fourth year to sell so well,” said Hideki Yasuda, an analyst at Ace Research Institute. “It’s an uncertain world already, and no one wants war and horror games in their living room. Animal Crossing keeps the parents happy too.”

While delays to production and shipping are gradually easing, Nintendo on Thursday warned of continued risks if the Covid-19 crisis is prolonged or gets worse.

Nintendo also cautioned that work-from-home conditions for its employees may prompt delays in the release of new software titles.

The company — well known for its conservative forecasts — said it expected operating profit to decline to 300 billion yen ($2.8 billion) this fiscal year.

The-CNN-Wire
™ & © 2020 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

Today’s Top Stories

Entertainment

Art City Donut Truck's Conner Jensen, left, serves customers sugary desserts during the Food Truck ...
Devin Oldroyd

Eighth annual Food Truck Face Off to be held at Liberty Park on July 16

Utah's largest food truck rally for charity, Food Truck Face Off, is coming back to Liberty Park this July.
3 days ago
Gov. Cox urges safety ahead of firework sales. Photo credit: Lindsay Aerts, KSL NewsRadio....
Lindsay Aerts

‘Utah is a tinderbox.’ State fire leaders urge caution ahead of firework sales

State leaders are, again, reminding Utahans not to "burn down the state" as firework sales start Friday.
3 days ago
Lehi ban fireworks...
Mark Jones

Cities around the state announce fireworks restrictions

Fireworks restrictions have been announced by several cities around the state.
4 days ago
A model wears a creation as part of the Giorgio Armani men's Spring Summer 2023 collection presente...
COLLEEN BARRY

Gucci unveils ‘HaHaHa’ collaboration with Harry Styles

Gucci has teamed up with Harry Styles for a between-season collection that infuses tailoring with adolescent joy. The collection is titled “HaHaHa.”
6 days ago
garth brooks salt lake city concert...
Mark Jones and Mark Jackson

UDOT, UTA advise travelers to plan ahead for Garth Brooks concerts

UDOT and UTA are asking motorists in Salt Lake City to plan ahead in light of the Garth Brooks concerts set for Friday and Saturday evenings.
10 days ago
Utah Foster Care puts on Chalk Art Festival in The Gateway....
Waverly Golden

Utah Foster Care to hold Chalk Art Festival

Over 100 artists will compete in the Chalk Art Festival, presented by Utah Foster Care, over the weekend.
10 days ago

Sponsored Articles

Tax Harassment...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
Prescription opioids can be disposed of during National Prescription Take Back Day...
Know Your Script

Prescription opioid misuse | How to protect your family from the opioid epidemic

Studies have shown that prescription opioid misuse has increased since COVID-19. So what do you need to know about these opioids?
Follow @ikeyospe...

Tax Tuesday: The Most Common Mistakes People Make When Filing Their Taxes

Fortunately, for most average earners, they will not end up owing overpayments received for the Child Tax Credit in 2021.
Follow @ikeyospe...

Tax Tuesday: How will last year’s child tax credits affect you?

Fortunately, for most average earners, they will not end up owing overpayments received for the Child Tax Credit in 2021.
‘Animal Crossing’ boosts Nintendo profits as demand for games soars