Nintendo cuts net profit forecast
Nintendo cut its full-year net profit forecast on Tuesday, saying the global chip shortage and other supply chain problems had hit console sales in the nine months to December. The Japanese gaming giant also trimmed the annual hardware sales forecast for its Switch console to 18 million units from the previous target of 19 million. New games such as "Pokemon Scarlet and Violet" and "Splatoon 3" have performed well, the Kyoto-based company said. But hardware sales by unit declined 21 percent on-year in April-December, "mainly due to a shortage of semiconductors and other component supplies that impacted production until around late summer". That in turn affected total software sales, which declined four percent on-year, Nintendo said. The company now predicts net profit in 2022-23 of 370 billion yen (US$2.8 billion), down from its previous forecast of 400 billion yen. In 2020-21, Nintendo's annual net profit soared to a record of 480 billion yen, thanks to booming demand for indoor entertainment during Covid-19 lockdowns. The firm nearly matched that figure in the last financial year, with its Switch console continuing to perform well and software sales staying strong. But sales of the Switch, which was launched in 2017, as well as its Lite and Oled variations, are slowing as the console ages. There are still bright spots on the horizon, however, with the chip shortage now easing and big titles coming up for Nintendo, including the new "Legend of Zelda" game. (AFP)