Nintendo continues to struggle to hit its Switch production targets as a result of global chip shortages, which contributed to a nearly 23 percent drop in console sales to 3.43 million in the three months ended June 30, the company reported today. .
Standard Nintendo Switch sales in the quarter were down 60 percent to 1.32 million units, while Switch Lite sales were down nearly 50 percent to 0.59 million units. The Switch OLED, which only went on sale last October, made some shortfall with 1.52 million units sold. Software sales also declined 8.6 percent to a little less than 41.5 million units. The company still expects to sell 21 million consoles during its full year ending March 2023.
“Production was impacted by factors such as a global shortage of semiconductor components, resulting in decreased hardware shipments and subsequent decline in overall sales,” Nintendo said in its earnings release. It said it expects chip purchases to “gradually improve from late summer to autumn.”
The quarter coincides with a quiet period for game releases. Nintendo Switch Sports It was the best seller with 4.84 million units, followed by Mario Strikers: Battle League And Kirby and the Forgotten Land with 1.91 and 1.88 million respectively. Mario Kart 8 Deluxe, a game that was released five years ago in April 2017, sold 1.48 million units in the quarter. Nintendo has now sold more than 111 million Switch consoles in total, and says that “demand remains stagnant” globally despite the machine’s age.
bloomberg reports that these results contributed to Nintendo’s earnings falling short of analyst estimates. Operating profit was 101.7 billion yen (about $764 million), lower than expected 115.2 billion yen ($865 million), while sales were 307.5 billion yen (about $2.3 billion), down from expected 332.1 billion yen (about $2.5 billion). compared to the average estimate. ,
Nintendo isn’t the only one seeing its sales falter this quarter. Sony reported last week that it had seen software sales fall by 26 percent and lowered its annual profit forecast by 16 percent. And it’s from a company that released a new console less than two years earlier than Nintendo’s five-and-a-half year old Switch. Market research firm NPD reported this week that US spending on video games fell 13 percent year over year in the second quarter of 2022.