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.
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.”