Nintendo failed to meet expectations in the company’s latest earnings report.
The video game giant reported $2.3 billion in sales for the three months ending June 30, 2022, down from $2.4 billion for the same period last year. Its operating profit reached $758 million during the quarter, compared to $894 million for the three months ending June 30, 2021.
Nintendo posted lackluster results behind supply chain disruptions and the semiconductor shortage plaguing the tech industry, leading to a reduction in hardware and software sales.
- Wall Street analysts projected Nintendo to report $2.5 billion in sales during the quarter.
- Analysts also estimated the gaming company would post $860 million in operating profit.
- Software sales fell to 41.4 million units, down from 45.3 million units for the same period last year.
The report also revealed that the company is behind schedule for production of its Switch console, sales of which also took a hit during the quarter.
The Switch — 111 million total units sold since its March 2017 release — saw sales reach 3.43 million units, compared to 4.45 million units for the three months ending June 30, 2021.
Nintendo expects to have Switch production return to its normal pace by the end of the summer.
Saudi Investment
The Public Investment Fund, Saudi Arabia’s roughly $600 billion sovereign wealth fund — which has an extensive gaming portfolio — acquired a 5% stake in Nintendo for $3 billion in May.
The investment makes the PIF the video game company’s fifth-largest shareholder.
