Nintendo’s Switch sales drop as it contends with chip shortage

Nintendo’s Switch sales fell significantly in the most recent quarter, falling to 3.43 million units, compared to 4.45 million in the same period last year, according to the earnings report. Software sales also fell to 41.4 million units, compared to 45.3 million year-over-year. All of this resulted in an operating profit of 101.6 billion yen ($763 million), down from a year earlier and below expectations.

The company attributed the Switch sales problem to a parts shortage, which also plagued Sony in the same quarter. “Hardware production has been impacted by factors such as the global shortage of semiconductor components, leading to a decline in hardware shipments,” the company said. It noted that the OLED model made up a large chunk of Switch sales, selling 1.52 million units, and that lower margins on that model pushed profits down a bit.

While game sales also fell, Nintendo managed to increase the overall percentage of first-party games sold. In fact, it was the second-best first quarter for first-party game sales since the Switch launched — second only to the first quarter of 2021 fueled by Animal Crossing: New Horizons. All in all, however, Nintendo would have to call the quarter a success, considering that game buyers reportedly spent 13 percent less this year than in 2021 Bloomberg.

Some of this was aided by the launch of three key games, as the company highlighted Nintendo Switch Sports the one on 29.04. Mario Strikers: Battles League launched June 10, while Fire Emblem Warrior arrived on 24.6. “More than 100 million users have played Nintendo Switch in the last 12 months,” the company added.

Nintendo hopes upcoming games will help in the next quarter. Xenoblade Chronicles 3 just started Mario Kart 8 Deluxe Booster Course Pass: Wave 2 coming on 4.8. turn 3 will be released on September 9th and you will see Kirby’s Dream Buffet sometime this summer. The company is also launching an OLED Switch Splatoon 3 Edition on August 26th.

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