Chip shortage hits Nintendo profits
Nintendo announced a cut in its forecasts because of the effect on its activity of the shortage of chips
Nintendo announced on Tuesday a cut in its forecasts at the end of the corresponding fiscal year due to the global shortage of chips and semiconductors, which is affecting the production of video consoles.
The entertainment company’s annual net profit has been affected by a reduction in the sales forecast for its next Switch console, from the expected 19 million to 18 million.
Added to this crisis is the 21 % drop in console sales in the period between April and December 2022. This reflected in the 4 % year-on-year drop in video game sales.
Nintendo had estimated net profit for the 2022-23 fiscal year of 400 billion yen. However, with the reduction in provisions, the amount has been recalculated to 370 billion yen.
(Reference image source: Alvaro Reyes, Unsplash)
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