To fully understand how monumental this 428% increase in profits truly is for Nintendo, it is necessary to break down the numbers behind it. In 2019, from April to June, Nintendo reported a generated revenue of $256 million. This number pales in comparison to the whopping $1.37 billion made during the same period of time in 2020. This incredible rise in profits can be attributed to a variety of factors. The two most tangible can be seen in the massive popularity of both Nintendo’s flagship console, the Nintendo Switch, and their newest major release, “Animal Crossing: New Horizons.” The Switch, which is priced at around $300, sold 5.66 million units over the course of the quarter, adding up to a year on year increase in sales of about 166%. This, combined with “Animal Crossing: New Horizons” becoming the second most sold game ever for the Switch at 22.4 million total copies sold, means that Nintendo’s profits reached completely new heights. Adding to this, of course, was the change of habits due to the pandemic. With more people forced to stay home, a rise in consumer entertainment has led to an overall increase in sales for many other companies as well.
Boost in Similar Companies’ Revenue
While not quite as stark of a boost, similar entertainment companies have seen growth during the COVID-19 pandemic. Activision, a video game development company, saw its earnings increase by 38% in the most recent quarter in comparison to 2019. Putting this into raw numbers, Activision’s revenue increased during this quarter from $1.4 billion in 2019 to $1.93 billion in 2020. The increase is partially due to the release of its newest installment in the incredibly successful first-person shooter franchise, Call of Duty. “Call of Duty: Warzone” reached 75 million downloads in mid-March, though Activision is quick to also attribute the burst in revenue to the pandemic. This has been reflected in stocks as well. In the last six months, Activision has seen its stock rise from $52.05 on March 20, up to $80.30, where it currently stands as of September 3.
There have been similar gains with other companies such as Lego, which saw modest gains in 2020 as well. While not quite as impressive as Nintendo or even Activision, Lego gained 7% in revenue over the first half of 2020 compared to 2019. These gains can be attributed to the lack of access that many children have to other activities such as visiting theme parks, going to children’s entertainment sites, and seeing new movies in theaters. With the variety of options available drastically diminished, toys such as Legos have seen noteworthy gains that have helped the brick-making company stay successful even in tough economic times.
The COVID-19 pandemic has seen many different changes to the lives of the average person. A major one of those is how people are spending their disposable income. With the lack of availability in regards to restaurants, bars, vacations, and live entertainment, video games and toys have seen a large increase that has affected the industries as a whole and more specifically, the companies mentioned above.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.