August 18, 2022
Nintendo’s quarterly sales slump amid chip shortages, 3.43 million Switch units sold

Nintendo of Japan sold 23 percent fewer Switch consoles in the April-June quarter than a year ago after chip shortages, it said on Wednesday.

The Kyoto-based gaming company said it expected improvement “towards late summer to autumn” and maintained its forecast of selling 21 million units a year through the end of March 2023.

“Demand remains stable across all regions,” Nintendo said in a presentation.

Nintendo, the company behind Super Mario, sold 3.43 million units of its Switch console in the quarter, up from 4.45 million a year ago. Last year it sold 23.06 million units.

It anticipates a second annual sales decline for its hybrid home/portable Switch device, which is in its sixth year on the market.

The company launched an upgraded Switch model with an OLED screen last October to spur interest in the system.

Software sales fell 8.6 per cent to 41.4 million units in the first quarter, while operating profit fell 15 per cent to JPY 101.6 billion (about Rs 6,020 crore), lower than analysts’ estimates.

Nintendo reported forex gains of JPY 51.7 billion (about Rs 3,060 crore) from the weak yen.

Investors are ignoring the gaming boom among consumers who were stuck at home during the pandemic lockdown.

Sony last week reported a 15 percent drop in PlayStation user engagement compared to a year ago.

“Gaming is now bigger than ever, and a certain share of users remains, but the party is certainly over now,” said Serkan Toto, founder of game industry consultancy Kantan Games.

Upcoming Nintendo games to support demand during the year-end shopping season include Splatoon 3, which will be released in September, and Pokemon Scarlet and Violet in November.

© Thomson Reuters 2022

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