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Nintendo reports 428% profit, 'Fortnite' maker announces $1.78B in funding

Nintendo reported a 428% surge in the company’s fiscal first quarter earnings. Yahoo Finance’s Dan Howley discusses.

Video Transcript

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DAN HOWLEY: It is time for Word on the Street, where we check in with our panelists, find out what stories they are watching. Dan Howley, predictably, is watching the video game industry, which continues to see some eye-popping numbers, Dan.

DAN HOWLEY: Yeah, Nintendo reported its earnings earlier this morning. And they saw a 428% increase in profits. That also saw Switch sales, their console that you can take up out of the TV and then walk around with, both versions of that, the Switch and the Switch Lite, increased by 167%. So the lockdowns really getting people back into the gaming industry.

We've seen this through Take Two's earnings. We've seen it through Activision and Blizzard's earnings. Microsoft's earnings and Sony's earnings both saw big increases. They're going to get new consoles soon. But their current consoles, which will be [? sunseted ?] shortly, still saw massive numbers.

And then, of course, we cannot talk about video games without "Fortnight." They just got a new funding round to the tune of $250 million. And that's through the likes of Bailey Gifford, Fidelity, Lightspeed, and David Tepper. Epic Games, of course, they're the makers of "Fortnite." They also have the Unreal Engine, which powers a lot of the video games that are out on the market.

So they're becoming even more powerful in the gaming industry. And you can expect to hear more from them. We'll see if they have a new game outside of "Fortnite" sometime soon, though.

JULIE HYMAN: We will. Dan Howley, real quick, what's your favorite game to play?

DAN HOWLEY: Right now, I'm playing "Call of Duty" with my friends nonstop. But I also play "Persona 5" with my wife.