Nintendo Completely Sat Out the Video Game Graphics Wars. It's Winning Anyway.

Manny Fidel, reporting for Sherwood News: When you're immersed in a game like "Cyberpunk 2077," it's easy to get lost in its realism. As you run around the crowded streets of Night City, you notice the reflections of the city lights and neon signs in the puddles when it rains. Even the complexion and texture of a character's skin are enamoring. At full power, the game, created by CD Projekt Red, is a graphical marvel. It's also a symbol of a decades-long arms race between the biggest video game companies to make things look as real as possible. And then there are Nintendo games.

Take 2022's "Pokemon Scarlet" and "Pokemon Violet" on the Nintendo Switch. Despite being the latest releases in a legendary franchise, in terms of its graphics they could've easily been published 15 years ago. It's a perfect example of how, sometimes to the frustration of gamers, Nintendo seemingly refuses to step into the present day. None of its flagship games really compete with the rest of the industry's optical experiences. The graphics of games like "Red Dead Redemption 2," "Starfield," and "The Last of Us: Part II" are decades ahead of Nintendo.

But here's the thing: Nintendo doesn't have to catch up, nor does it want to. "Pokemon Scarlet" and "Pokemon Violet" sold 10 million copies during their launch weekend alone. According to IGN, Nintendo is responsible for three of the top five bestselling video game consoles of all time. Its characters -- Mario and Luigi, Link and Zelda, Pikachu and Ash -- have defined and are constantly redefining the industry. Nintendo is a money machine. It's been raking in more than $10 billion in revenue (more than 1.6 trillion yen) annually for the past several years, and its profits have grown sharply, topping out at about $3.3 billion in the fiscal year ended March 2024. For comparison, in its latest fiscal year, Sony's gaming division generated $29.1 billion of revenue and an operating profit of nearly $2 billion. Nintendo posted $11.4 billion of revenue and an operating profit of $3.6 billion.

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