Nintendo records most profitable year ever

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Nintendo

Looks like Nintendo has been getting a lot of powerups in its race through the pandemic, as the Japanese game company recorded fiscal year 2020 as its most profitable year yet.

As revealed in Nintendo’s financial results covering April 1, 2020, to March 31, 2021, operating profit increased to 81.8 percent or up to ¥640 billion (P282 billion), while gross profit has risen 88.4 percent or ¥679 billion (P298 billion). This surpasses the company’s highest gross profit of ¥501 billion in March 2019.

Nintendo’s net sales that totaled ¥1.76 billion (P773 million) fell just right behind its record height of ¥1.83 billion (P804 million) in 2009.

Meanwhile, Nintendo Switch has sold 84.59 million units to date, with 28.8 million rolled out during the period. The company sold a total of 230.9 million games that year, with most of the profit coming from top games Animal Crossing: New Horizons (20.85 million units), Mario Kart 8 Deluxe (10.62 million units), Super Mario 3D All-Stars (9 million units), and Ring Fit Adventure (7.38 million units). Games that were sold digitally also increased to 42.8 percent from last year’s 34 percent.

In spite of all that, Nintendo expects to see the numbers plummet in the current year that will end March 2022.

“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 an additional report. “Other risk factors which are difficult to predict also continue to exist, involving areas such as development and marketing of products and services.”

Among the major drivers of the company’s foreseen decline is the global chip shortage currently hampering the operations of many tech companies worldwide.

“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 company added. “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.”

Still, Nintendo intends to continuously address the issue so as not to impede the quality service it has been giving customers over the past decades.

Read next: Sony warns PS5 shortage to continue through 2022

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