Coronavirus: Nintendo’s Profits triple as Games Boom Continues
Nintendo, a Japanese gaming giant, announced its soaring revenue, as COVID-19 boom in the gaming industry continues. The gaming industry has been experiencing a surge in sales during the coronavirus pandemic as restrictions in movement and lockdown have left many people searching for entertainment.
Nintendo Switch console sales tripled in from the first half of the year through the end of September. On the other hand, its rival, Sony, said that the pre-release demand for their new Playstation 5 was higher than ever.
The video game sector is one of the few industries that is doing very well internationally, despite the pandemic, Enders Analysis head of technology Joseph Evans said. That is linked directly to people having to social distance and locked down. He said that international sales have reached $10bn (£7.6bn) every month since this March. Sales are continuously growing every month.
Nintendo is just one of those companies riding the crest of the coronavirus wave. Its games have greatly capitalized on various lockdown trends. Animal Crossing, a Nintendo game, allows users to interact in a perfectly virtual world, appealing to those who can’t come together face-to-face. People can visit their friends in the game, and then socialize. Ring Fit games, meanwhile, tap into individuals wanting to workout while stuck at home. It sold 12.5 million units in the first half of 2020.
Nintendo’s big seller in terms of hardware was its popular Switch consoles. It sold over 12.5 million units in the first half of 2020. Alongside that, Switch software sales also increased. Animal Crossing: New Horizons sold 14.27 million units.
Microsoft and Sony are set to release its next-generation consoles the following week. This means more competition for the Nintendo Switch.
Nintendo raised the forecast for its Switch sales towards the end of March 2021. Right now, it expects to sell around 24 million consoles. That is a 26% increase from the previous 19 million forecasts.
As per the UK Interactive Entertainment, The United Kingdom’s gaming industry has proved to be so resilient in the face of the coronavirus pandemic. Back in July, it said that nearly half of British gaming businesses reported a huge increase in revenues, while a small number were utilizing the furlough scheme.
Last September, a study for the Interactive Software Federation of Europe discovered that British gamers played more and spent more than people in Italy, Spain, Germany and France during lockdown.
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