Nintendo Lowers Switch Sales Expectations Due to Chip Shortages

Nintendo has lowered its sales targets for the Switch. The Japanese game console manufacturer is struggling with a shortage of parts, including chips, which are hindering the production of the popular console. Nintendo also struggles with logistical problems.

Nintendo expects to sell 24 million units of the Switch this fiscal year. In an earlier forecast, Nintendo still counted on 25.5 million devices to wear out. Switch’s lesser sales don’t seem to have any effect on the profits Nintendo expects to make. The company even raised its target for operating profit to 500 billion yen or 3.8 billion euros. Nintendo seems to be confident in the lucrative sales of software and network services.

From July to September, Nintendo sold more than 3.8 million Switch devices. That was a drop compared to the nearly 4.5 million consoles a quarter earlier. Nintendo is especially struggling to ramp up production of its new OLED Switch. Sales of the original Switch and the more affordable Switch Lite have been down all year. As a result, Nintendo relies on the more expensive new variant to maintain sales of the device in 2022.

According to market researcher NDP, the Switch was no longer the best-selling console for the first time in 33 months in September. As a result, Nintendo had to leave that honour to Sony’s PlayStation 5.