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Nintendo (NTDOY) operating profits soar by 428% amid pandemic
Nintendo (NTDOY), Sony (SNE), Take-Two Interactive (TTWO) and Activision Blizzard (ATVI) all got a boost from a spike in video game sales in Q2 this week as the industry benefited from the stay-at-home measures related to the coronavirus pandemic.
Nintendo, which was the last to report, said on Thursday that operating profits had soared 428% to $1.4bn for the three-month period ending 30th June.
This forecast-busting figure was more than 600% higher than the figure from a year earlier.
The Japanese company also posted a 108% rise in net sales as its franchise hit Animal Crossing: New Horizons shifted 22.4m copies worldwide.
Sony also beat the analyst consensus earlier this week despite coming in with a modest 1% decrease in profits.
The media conglomerate said that its PlayStation division had been strong in Q2 and that game sales had surged 82% to 91m units.
Both Nintendo and Sony said that there had been a marked rise in digital downloads year over year.
Platform holders were not the only companies to benefit, as video software enterprises Take-Two Interactive and Activision Blizzard also crushed pre-report expectations.
Take-Two Interactive, which owns Rockstar Games, posted net income of $0.77 per share and $831.m revenue, a jump of 91% and 54% year over year respectively.
Activision Blizzard’s portfolio of games, which includes Call of Duty and Candy Crush Saga, also prospered and helped the company to $0.81 earnings per share and $1.93bn revenue versus the $0.59 per share and $1.7bn expectations.
Analysts advised investors that the games industry is hot right now ahead of the launch of next-generation consoles later this year.
TheStreet’s David Dierking noted: “The global games market is expected to grow around 9% per year through 2022. That includes games played on a traditional console, such as the Microsoft XBox or Sony Playstation, as well as mobile games played on a phone.”
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