Nintendo shares saw their biggest drop in over a year

Nintendo shares saw their biggest drop in over a year as Switch sales guidance was cut

Nintendo saw its largest intraday share decline in 12 months on Wednesday, nearly 7%. This happened according to the company announced a nearly 10% cut in sales guidance for the Switch games console for the year.

    Image source: Nintendo

Image source: Nintendo

The Kyoto-based Japanese maker of video games and gaming systems announced on Tuesday that it could only sell 19 million Switch consoles in the current fiscal year, 2 million fewer than planned. This is due to a reduction in production due to a shortage of components.

However, Nintendo President Shuntaro Furukawa said in a press conference that chip shipments have started to recover in recent months, allowing the Switch to ramp up production just in time for the booming holiday season.

Furukawa said Switch demand and console sales momentum remain strong despite supply shortages due to component shortages, and the company will try to get as many consoles to consumers as possible during the holiday season, Furukawa said. However, Nintendo’s share price on the Tokyo Stock Exchange traded down 6.7%, its biggest one-day decline since October 2021.

Nintendo has promised not to increase the price of the Nintendo Switch video game console any time soon. However, Furukawa noted during the briefing that the sharp and prolonged depreciation of the yen has impacted the profitability of the company’s hardware business in Japan, hinting at the possibility of higher prices for the console in the future.

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Alan Foster

Alan Foster covers computers and games and all the news in the gaming industry.

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