Nintendo Slashes Forecast for Popular Gaming Console

Nintendo slashed its full-year sales forecast for its best-selling home gaming console ever following the release of its latest earnings report.

The Japanese video game giant reported $4.5 billion in sales for the six months ending Sept. 30, a 5% increase year-over-year. Its ordinary profit reached $2.2 billion during the period, compared to $1.6 billion for the six months ending Sept. 30, 2021. Despite the growth in revenue and profit, Nintendo has been hampered by the ongoing chip shortage plaguing the tech industry. 

• Switch sales reached 6.68 million units during the period, down 19% year-over-year.
• Full-year sales are projected hit 19 million units by the end of March 2023.
• Switch sales were previously projected to reach 21 million units during the same span. 

Nintendo has seen its Switch output improve since September and is “continually working to front-load production” to prepare for the holiday season.

As of Sept. 30, Nintendo has sold 114.3 million units of the Switch since its 2017 release. 

New Faces 

The Public Investment Fund — Saudi Arabia’s sovereign wealth fund — acquired a 5% stake in Nintendo in May for $3 billion, making the fund Nintendo’s fifth largest shareholder.

On Tuesday, Nintendo announced a joint venture with mobile gaming company and “Animal Crossing” co-developer DeNA.

The venture will establish a new company — Nintendo Systems Co., Ltd. — that will launch in April 2023 and work to “strengthen the digitalization of Nintendo’s business.”