Japanese company Nintendo has closed its fiscal year 2020 with good results, thanks to solid sales and a great reception for two of their recent titles: Animal Crossing and Pokémon. However, the forecasts for its next year are not as optimal as this one, especially due to the COVID-19 pandemic that may affect future releases of the hybrid. A recent company report, names four issues that cast uncertainty on the future of the company during confinement:
- Impact on production: Nintendo does not guarantee a full supply of consoles during the pandemic. As we have already seen the first weeks of confinement, in some parts of the planet the sale of the Nintendo Switch h as been interrupted creating speculation in the market, as has happened in third-party stores on Amazon.
Store closings. The company relies entirely on distribution via courier, as confinement can disrupt daily activities. In the event of physical distribution being suspended, Nintendo may not sell hardware or physical games.
Impact on the development of new titles. By having to take measures to prevent the virus from spreading in certain countries such as Japan, some games are be ing developed electronically, as workers carry out their functions from their homes, in some cases. For this reason, this could seriously affect the development of some titles, especially those third parties
The exchange rate. In crisis situations, the possible devaluation of the currency in Japan, the yen, could have serious consequences. Reducing the benefit that exports to other countries would generate.
But not everything is misfortune. The video game industry is coming out of this crisis quite well, since this model of entertainment is one of those who best adapt to the obligation to stay at home. Despite seeing some delays, product sales are increasing noticeably, and has been noted in recent releases like Animal Crossing: New Horizons.