Covid gives Nintendo a record profit

Computer games are in demand when the family has to stay at home. But Nintendo also warns that the shortage of semiconductors could slow down the production of its game consoles.

In 2020 Nintendo sold more than 28 million copies of its popular Switch game console.

Dhe Japanese games specialist Nintendo closed the financial year marked by the corona pandemic with a record profit of 480 billion yen (4 billion euros). Because consumers in Japan and the West had to stay at home a lot as a result of the infectious disease, demand for the game consoles from the Kyoto-based company soared.

Nintendo sold 28.8 million game consoles from the popular Switch series. That’s almost 9 million more consoles than the year before. The business was thus largely unaffected by the shortage of semiconductors and the newly introduced game consoles from competitors Sony and Microsoft. Nintendo warned that there could be production restrictions on its game console in the current financial year as a result of the shortage of microchips.

According to the company, the sales surge as a result of the corona pandemic will weaken in the current financial year. Nintendo forecast a decline in console sales to 25.5 million units. This is due to the fact that the Switch model is more than four years old and could have reached the peak of sales. There is speculation about a more powerful model that could come onto the market in the second half of the year.

Shares rose significantly in value

Nintendo increased sales last year by 34 percent to 1,759 billion yen (14.6 billion euros). Operating profit rose 82 percent to 640.6 billion yen. For the fiscal year that began in April, the company expects sales to decline by 9 percent to 1,600 billion yen. According to the forecast, the surplus is expected to drop by 29 percent to 340 billion yen. The company’s share price rose nearly 30 percent over the past twelve months.