This meant that the value of a video game often stopped at the initial purchase. In fact, prior to the introduction of live gameplay and digital downloads, EA generated most of its revenue through the sales of physical games. Propelled by an industry-wide shift to live services, EA has become increasingly digital. Over the last decade, while many of the company's prominent titles have stayed consistent, EA's business model has changed dramatically. Electronic ArtsĮlectronic Arts, also known as EA, is a video game publisher that's most popular for its sports-based franchises FIFA and Madden. Over the coming years, as Nintendo continues to add new iterations to the Switch platform and grow its active user base, its profits should trend steadily higher. However, despite Nintendo's promising outlook, concerns over cyclicality and the company's risk-averse management team have hampered the stock price. Nintendo's current enterprise value (market cap minus net cash) to expected full-year operating income ratio stands at 9.1 - far lower than those of many of its gaming peers.
APEX RULE 34 SOFTWARE
With the upcoming slate of games containing several long-anticipated titles like Pokémon Brilliant Diamond, The Legend of Zelda: Breath of the Wild, and add-on content for Animal Crossing, Nintendo has upgraded its full-year guidance and expects to sell 200 million software units (game sales) for 2021 - a 19% increase from its 2019 figure. So far, Nintendo has sold more than 90 million total units of the Switch platform, and it has already touted 79 million playing users in the first half of this year alone.
Not only does this encourage additional console upgrades and keep customers in the Nintendo ecosystem for longer, but it also makes Nintendo's game development process more lucrative.Īs the company builds new downloadable games from its famous franchises like Pokémon, Zelda, Mario, and more, the active user base for Nintendo to sell to consistently grows.
APEX RULE 34 UPGRADE
So as users upgrade from the original Switch to the Switch Lite, and now most recently to the Switch OLED model, they no longer need to restart from square one, but can instead save their progress and access games across different pieces of hardware. This digital focus also helps ease the transition across Nintendo's various Switch iterations.
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