Nintendo lowers its Switch sales forecast due to global chip shortage

·Associate Editor
·2 min read

Nintendo has cut its Switch sales forecast due to ongoing semiconductor shortages, the company announced in its earnings report. It now expects to ship 24 million Switch units for the fiscal year ending March 31, 2022 instead of the 25.5 million units it had originally predicted. 

The issue came into focus this quarter, as Nintendo managed to ship just 3.83 million Switch consoles compared to 6.86 million during the same quarter last year. So far, its net sales for the year are down 18.9 percent to 624.2 billion yen ($5.46 billion) year-over-year. 

That's not a huge surprise, however, as Switch and software sales exploded during the COVID-19 lockdown and following that has proved to be impossible — particularly as chips and components have since become more scarce. Today's numbers don't include any sales of the Switch OLED, as the earnings only provide data up to September 30th, a full week before the updated console arrived.

Despite the revised sales expectations, Nintendo expects to match total revenue of 1,600 billion yen ($14 billion) from the previous fiscal year, thanks in part to games. It aims to sell 200 million software units, 10 million more than last year, which would help offset the console sales drop. Upcoming titles include Pokémon Brilliant Diamond and Shining Pearl plus a Zelda-themed Game & Watch.

The most popular games so far this fiscal year include Legend of Zelda: Skyward Sword (3.6 million units sold), Mario Kart 8 Deluxe (3.34 million units) and Animal Crossing: New Horizons (2.22 million units). The launch of Metroid Dread came after the earnings period Nintendo is reporting today.

Despite the reduced expectations and tepid console sales this quarter, Nintendo has now sold 92.87 million Switch units to date. That's still short of the Wii, which has the company's current home console sales record of 101.63 million units shipped. However, if Nintendo comes close to matching the 11.57 million units sold during last year's holiday period, the Switch — aided by the new Switch OLED model — could finally top that mark by the end of the year. 

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