In 2020, Nintendo saw huge profits, likely boosted by people quarantined at home, playing video games.
According to the company’s newly released financials, which cover the period between April 1, 2020 and March 31, 2021, Nintendo saw a 34.4 percent increase in sales to 1.76 trillion yen ($16.1 billion) and an 85.7 percent spike in net profit, reaching 480 billion yen ($4.39 billion).
The company had thirty-six games selling a million copies on its hardware, with twenty-two of them being Nintendo titles. Out of those, at the top, Animal Crossing: New Horizons sold 20.85 million copies, Mario Kart 8 Deluxe sold 10.62 million, Super Mario 3D All-Stars sold 9.01 million, and Ring Fit Adventure sold 7.38 million.
Currently, Osaka, Tokyo, Kyoto, and Hyogo are under a state of emergency due to covid-19. According to Nintendo, the virus could pose problems with production.
“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 stated. “Other risk factors which are difficult to predict also continue to exist, involving areas such as development and marketing of products and services.”
“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 continued. “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.” Nintendo added that it would continue to take the necessary steps so that consumers can enjoy their goods and services.
Nintendo is forecasting lowering earnings over this year, projecting 340.0 billion yen ($3.1 billion) in profit.