Nintendo lowers Switch sales forecasts but still expects a healthy year

Nintendo has announced a solid quarter of earnings, with revenue for the quarter at 349.5 million yen ($2.38 billion) and a 118.7 million yen ($809.6 million) operating profit. That’s up by 15.9 and 18.5 percent over last year, largely in part due to a weaker yen, sales outside Japan and the launch of Splatoon 3.

The company is less bullish on Switch console sales, however, lowering its forecast from 21 million to 19 million for 2022. However, it doesn’t think that will affect earnings much, with revenue forecast to be 50 billion yen higher at 1.65 trillion yen ($11.25 billion) and operating profit remaining the same at 500 billion yen ($3.4 billion). 

Nintendo said that it has seen a gradual improvement in the supply of semiconductors and other components, along with a “recovery trend in hardware manufacturing for the Switch.” However, it lowered the forecast based on sales to date, with the weak yen making up the difference in revenue and profit. 

In the last quarter, the company sold 6.68 million Switch consoles, 3.53 million of which were the OLED model. The standard Switch accounted for 2.23 million sales, while the Switch Lite saw 0.92 million. To date, Nintendo has sold …read more