What will happen to Nintendo if Animal Crossing IP cool off?

Jannyferr

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Nintendo said Thursday that its fourth quarter profit soared 200 percent as demand for its Switch consoles surged, while its game Animal Crossing: New Horizons sold a record 13.4 million copies in its first six weeks. Nintendo reported operating profit of 89.4 billion yen (67832 million pounds) in January March. With its success, Nintendo has dispelled doubts about its ability to attract consumers beyond its core users in its fourth year. Since its launch on March 20, the game has become the fastest selling game on the console.

What will happen to Nintendo if Animal Crossing IP cool off?

At a time when investors are disappointed in the company's conservative management, the game has greatly attracted consumers around the world seeking to escape from reality in the wake of the coronavirus, and its success highlights the strength of Nintendo. Nintendo said it expects to sell 19 million Switch consoles this fiscal year. Its forecasts are widely regarded as conservative.

"The impact of Animal Crossing New Horizon is bigger than expected, but only temporary," said Shuntaro Furukawa, Nintendo's chief executive He added that he did not think the company's forecast was conservative, including that software sales for the year would fall to 140 million.

In the year to March, Nintendo sold 21 million Switch consoles, well above its forecast of 19.5 million. The figure is broken down into 14.8 million home portable hybrid devices and 6.2 million pure handheld Switch Lite devices, which went on sale last September.

The epidemic of Switch equipment and the impact of coronavirus outbreak on the supply chain have led to Switch shortage all over the world, making the company unable to make full use of the pent up demand.

The company said production and transportation activities were "gradually recovering" after delays caused by the new coronavirus pandemic, but it pointed to the risk of further disruption to its business, including game development. Shuntaro Furukawa said it was "hard to expect" employees working from home to "have the same productivity" and added that if the crisis continues, the game could be delayed. Nintendo has provided few details about its upcoming games, which may affect its sales momentum, and game developers around the world are scrambling to reduce the interference of the new coronavirus. What will happen to Nintendo if Animal Crossing IP cool off?
 
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