Gaming

Nintendo made five-fold profit thanks to Animal Crossing: New Horizons

Why are we not surprised!

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Photo by Sara Kurfeß on Unsplash

While most companies are ravaged by the Coronavirus pandemic, digital or internet-based companies are posting record-breaking profits. Popular game maker Nintendo is one of them. The Japanese company’s quarterly profit jumped a whopping 428 percent year-over-year.

It reported an operating profit of 144.7 billion yen (US$ 1.4 billion) in the April-June quarter, beating all street estimates and predictions. Much of the credit for this massive jump goes to its new game, Animal Crossing: New Horizons. The game directly contributed to increased Nintendo Switch sales.

The financial announcement noted that out of all the new Switch units that were bought and played on for the first time, more than half played ACNH on the first day. For a game, that’s a lot of demand, and this indirectly encouraged more Switch sales.

The game single-handedly contributed a 167 percent rise in new members who joined the Switch community. In total, the company managed to sell more than 3 million Switch and 2.6 million Switch Lite.

Nintendo also confirmed that it’s having delivery and supply chain issues due to the ongoing pandemic. However, it meant that supply is running slightly behind schedule and the company should be able to meet the full demand soon. Supply was hit in March but the company was able to bridge the gap in the coming weeks.

Due to the global lockdowns and travel restrictions, gaming companies have noticed a huge surge in games as well as console sales. Nintendo too benefited from this with a 230 percent rise in revenue from digital sales, accounting for about 56 percent of total software sales.

Japanese conglomerate Sony, which manages the PlayStation lineup, also reported positive results earlier this week.

Gaming

Microsoft buys Activision Blizzard for nearly US$ 70B

Massive acquisition

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Microsoft Activision

Here’s a move no one saw coming. Microsoft has just acquired gaming company Activision Blizzard for a whopping US$ 68.7 billion in an all-cash transaction.

This means every studio and every game under Activision Blizzard now belongs to Microsoft. These include the creators of popular franchises like Call of Duty, World of Warcraft, Overwatch, Diablo, Tony Hawk Pro Skater, Crash Bandicoot, and more.

The acquisition will make Microsoft the world’s third-largest gaming company by revenue, behind Tencent and Sony.

Bobby Kotick, who has been embroiled in several issues concerning company culture will remain as CEO of Activision Blizzard. Once the deal formally closes, he and his team will report to Phil Spencer, CEO, Microsoft Gaming.

Exclusives?

The initial statement release stated that the Microsfot will continue to be present in the platforms that Activision Blizzard has established communities in. This could have allayed fears that the acquired titles will now be exclusive to Microsoft and Xbox. However, this line is no longer present and has been replaced with statements from Microsoft CEO Satya Nadella and Phil Spencer.

“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” said Satya Nadella.

“Together we will build a future where people can play the games they want, virtually anywhere they want,” said Spencer.

Game Pass

The acquisition bodes well for Microsoft’s Game Pass. It already boasts of hundreds, if not thousands of gaming titles as well as over 25 million users.

The acquisition will add some parts of  Activision Blizzard’s nearly 400 million monthly active players in 190 countries. It will make Game Pass one of the most compelling and diverse lineups of gaming content in the industry.

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Gaming

My Hero Academia is getting a battle royale game

In closed beta right now

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Image source: Gematsu

Just when you thought the battle royale craze was over, a new contender has approached. Capitalizing on one of the most popular anime series in modern history, Bandai Namco is launching a battle royale based on My Hero Academia. My Hero Academia: Ultra Rumble is currently undergoing a beta test now.

Officially teased by Japan’s Weekly Shonen Jump magazine (spotted by Gematsu), the upcoming battle royale game will come to the PlayStation 4, Xbox One, Nintendo Switch, and Steam. Like other battle royales in the genre, the game will be free-to-play.

Image source: Gematsu

However, instead of an all-out brawl between dozens and dozens of players, the game will only feature 24 players in a single round. Though Bandai Namco has not announced a launch date for the battle royale, a closed beta announcement means things are rolling smoothly. It might not take long before an open beta and an eventual launch happens.

My Hero Academia: Ultra Rumble makes sense as a spin-off of the popular anime series. Put simply, My Hero Academia takes place in a world where superpowers are commonplace. It’s easy to see how a battle royale based on the anime can work especially with different powers acting as a way to eliminate opponents.

Curiously enough, the game is coming out in older console generations, rather than the PlayStation 5 and the Xbox Series X/S.

SEE ALSO: FF7 series launches new PS5 update, mobile battle royale

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Gaming

Microsoft has stopped making all Xbox One consoles

To focus on Xbox Series X/S

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Despite the global shortage, the gaming world is steadily moving towards next generation dominance. Both Sony and Microsoft want gamers to use either the PlayStation 5 or the Xbox Series X/S exclusively. However, the ongoing problem is preventing gamers from switching. To help with the shortages, Microsoft is discontinuing all Xbox One consoles.

This has been a slow death for the previous Xbox generation. Back in 2020, Microsoft stopped producing the Xbox One X and the Xbox One S All-Digital Edition to pave the way for the then-launching Xbox Series X/S. That was only part of the equation. Gamers could still get other variants of the Xbox One series. Of course, that ends now.

Microsoft has stopped producing new units of all Xbox One consoles. If you want to purchase an older Xbox, you’ll have to rely on existing stock.

According to a statement sent to The Verge, the company pushed through with the decision to focus its production more on the still-scant Xbox Series X/S. With enough luck, the move might help the shortage. Both the new Xbox and the PlayStation 5 still notoriously sell out seconds after new stock is announced.

Ironically, Sony is trying the opposite strategy. Because of the ongoing shortages, the PlayStation maker is instead manufacturing more PlayStation 4 units this year, ideally to fill in the lacking PlayStation 5 stock.

Which strategy will prevail? At this point, no one is. Both consoles are still missing from stores despite overwhelming demand.

SEE ALSO: Xbox creates a SpongeBob-themed Xbox Series X

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