The global shortage of chips is also increasingly causing problems for the manufacturers of game consoles. The traditional Japanese company Nintendo is screwing down its forecasts for the Switch.
Nintendo is being held back by the global shortage of microchips and has to lower the sales forecast for its Switch game console.
The Japanese game specialist is now expecting 24 million units to be sold in the fiscal year that will run until the end of March, instead of the previous 25.5 million. Nintendo stuck to the previous sales forecast after the start of a modernized switch with an improved display.
In the first half of the fiscal year, which ended at the end of September, switch sales fell significantly – to 8.3 million consoles from 12.5 million a year earlier. In the past fiscal year, Nintendo had sold 28.8 million Switch devices.
There are currently no indications of a relaxation of the component bottlenecks, said Nintendo boss Shuntaro Furukawa. He did not rule out that the sales forecast could be lowered further if the situation worsened.
The consoles are a mainstay of the business for the traditional company: the more of them are in the household, the more games Nintendo can sell. In total, the group has brought almost 93 million switch consoles onto the market since March 2017.
Competitors Sony and Xbox are also currently struggling with the chip shortage. The new generations of their Playstation and Xbox consoles are hard to come by even months after they were launched.
The decline in Switch sales was also reflected in Nintendo’s business figures. Sales fell in the first half of the year by around 19 percent to 624.3 billion yen (4.7 billion euros). The profit fell in a similar magnitude to 171.8 billion yen (1.3 billion euros). For the entire fiscal year, Nintenso expects sales of 1.6 trillion yen (a good twelve billion euros). The profit forecast was raised from 340 to 350 billion yen, among other things in view of more favorable exchange rates.
Source From: Stern
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