Nintendo published its full-year earnings last week, which revealed unprecedented sales numbers. Aside from a staggering 34.4 percent YOY increase, the largest gain since FY 2008/2009, its operating profit was the highest the company has ever seen. It has provided a $9.2 billion “war chest” that will be used for investing in technological innovation. There is some bad news, however, as the company expects a significant drop in sales for the coming fiscal years amid chip shortages and other factors.
Record year for Nintendo.
— Daniel Ahmad (@ZhugeEX) May 6, 2021
The company reported revenue of $16.59 billion, up 34.4% YoY. Highest since FY08/09.
Operating Profit was $6.04 billion, up 81.8% YoY. This is the highest operating profit the company has ever recorded.
Operating profit ratio +9.5 points YoY. pic.twitter.com/aJy8Uff7gM
Nintendo expects hardware sales to be 25.5m this fiscal year, down 11.5% YoY.
— Daniel Ahmad (@ZhugeEX) May 6, 2021
Software sales are expected to be 190m units, down 17.7% YoY.
Some risk due to global chip shortage could lead to lower shipments.
No Animal Crossing size hit this year it seems. pic.twitter.com/hN9eopsixW
We need to secure cash reserves to ensure financial stability, but if we need to respond to rapidly advancing technological innovation, we may acquire companies that possess the technology.