Nintendo Q1 Switch sales drop 22% to 3.43 million units

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Nintendo Q1 Switch sales drop 22% to 3.43 million units.
Source: Today’s Chronicle

This week, Japanese games company Nintendo Co Ltd reported last quarter sales of its Switch consoles down 22% from the first quarter. That’s because it remains on par with its sales forecast of 21 million consoles this year through the end of March next year. It ended up selling 3.43 million in the second quarter, down from 4.45 million last year, when the 2021 total was 23.06 million consoles.

The gaming giant is based in Kyoto, Japan, and is popular for building the “Super Mario.” Currently, it expects its second annual sales to drop due to its Switch home/portable hybrid gadget. This coin is currently in its sixth year on the gaming market.

Last year in October, the company released an upgraded version of its Switch device. This new model featured a new OLED display to facilitate the increased interest in the system which was clearly aging. Nintendo expected this to help boost console sales.

Current situation of the game industry:

For some time now, console makers have visibly been struggling with supply chain disruptions. It’s like Shuntaro Furukawa, the president of Nintendo Co Ltd, pointed out the component shortages, which are happening right now, about two months ago.

Clearly, investors are on the lookout for any signs of an unraveling in the gaming sector among gamers. Mainly, because these consumers were previously confined to their homes at the end of the confinements during the Covid-19 pandemic. A few days ago, Song Group Corp reported a significant 15% drop in engagement from Playstation users, compared to what they saw exactly a year ago. Serkan Toto of Kantan Games said that despite the prosperity of the gaming industry, the peak in demand is over even when most consumers are still intact.

Reports suggest there is a lineup of games coming from the Japan-based gaming giant in the coming months. Nintendo’s games would help support demand in the critical one-year purchase period. This primarily includes “Splatoon 3” which is slated for release next month. Meanwhile, the “Pokemon Scarlet and Violet” is expected to be released in November this year.

Nintendo officials clarified how the drop in sales was mainly due to the chip shortages they’ve been facing recently.

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