Shares of Japanese video game maker Nintendo jumped Friday after the company reported a blockbuster quarter.
Nintendo shares rose 2.58% after the company reported a multi-fold increase in quarterly profit on the back of strong demand for its flagship "Switch" gaming console. The runaway success of its social simulation game "Animal Crossing: New Horizons" also helped boost overall sales.
Nintendo’s operating profit for the three months ended June 30 skyrocketed 428% to 144.737 billion yen (approx. $1.37 billion U.S.). It was much higher than an average estimate of 71 billion yen, according to Refinitiv.
Nintendo’s Switch enjoyed strong sales during the coronavirus lockdown globally. The hybrid console, launched in March 2017, allows gamers to play either on-the-go, or connected to an external screen. Sales for the device have been strong as the wider video game industry saw a spike in demand during the initial wave of lockdowns to curb the spread of COVID-19.
At the same time, the "New Horizons" video game, the latest iteration of the Animal Crossing franchise, has sold 22.4 million units. It jumped to second position among the top selling Switch games, as of June 30, despite the fact that the game only launched in March of this year.
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