Animal Crossing: New Horizon sales and Nintendo’s huge net profit

Animal Crossing: New Horizon. Who is not playing it?

We have come across some mind-blowing information about Nintendo that will surely knock your socks off. In the galaxy of multi-billion dollar gaming industry, where money flows like a river, Nintendo’s net profits year-on-year have grown by over 500% thanks to Animal Crossing: New Horizon and Nintendo Switch.

Animal Crossing: New Horizon is being loved by a vast majority of gamers; it sold over 22 million copies and become second best-selling Switch game after Mario Kart 8 Deluxe, which sold 26.74 million units. With such popularity of Animal Crossing, Switch has sold more than 61 million units. To further analyze the popularity of Animal Crossing: New Horizon, it has surpassed Super Smash Bros Ultimate and The Legend of Zelda: Breath of the Wild, each of em’ sold 19.99 million and 18.60 million units respectively, let that sink in.

This game became so popular in the US, Japan, and Europe that during lockdown between April to June 2020 it was being played on over 50% of Nintendo Switch systems. Furthermore, it accounted for over 40% of overall sell-through for Nintendo titles in the said countries.

Now let’s talk about Nintendo software sales accounting for millions of units sales of Xenoblade Chronicles Definitive Edition and Clubhouse Games: 51 Worldwide Classics, each of these sold around 1.32 million and 1.03 million respectively.

The massive popularity of Nintendo Switch software sales is further consolidated by its hardware which sold over 61.44 million units just behind NES 61.91 million units. And if we talk about this quarter, a total of 3.05 million units of Nintendo Switch Systems were sold, an increase of 166% year on year.

In the end, if we talk about Nintendo’s mobile and IP related income, an increase of 32.7% is reported after the income reached 13.2 billion yen. The revenue and profit of Nintendo seem quite promising for the future, but there aren’t any plans that we know about except recently announced Pikmin 3 Deluxe, which is set to be released at the end of October this year.

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Reinout is a games investor and strategic business consultant specializing in the games industry. Reinout established his credentials through his own successful investments, start-ups, consulting and (advisory) board positions that led through time to strong bonds with key stakeholders in this fast paced industry. He is known for his outstanding results in the gaming industry. He has worked with many game studios around the globe and is therefore well known in the international gaming industry.

With over 20+ years of experience, well known publishers, AAA+ game developers, serial gaming entrepreneurs and management teams of gaming corporations consult him on matters that behold financial, technical, operational, strategic and commercial.

I am observing and overseeing several boards of gaming companies. My trademark is to listen, strategize and give feedback to the stakeholders involved. I also represent management/founders towards shareholders and vice versa.