Until then relatively spared by the difficulties caused by the shortage of electronic components, Nintendo has just realized the obvious. The Japanese manufacturer has just revised downwards its sales forecast for the Switch for the coming fiscal year.
As you know, many industries such as High-Tech, video games or automobiles have had to contend for two years now with an unprecedented shortage of electronic components. While Microsoft and Sony have been hit hard by this crisis, as evidenced by the limited stocks of PS5 and Xbox Series X, that was not really the case for Nintendo. BigN had managed to maintain a high level of production for the Nintendo Switch, its flagship console.
In March 2022, the Nintendo Switch also crossed 103 million copies sold, surpassing the Wii and the PS1 in passing. Despite this performance, the Japanese firm had however announced that it would be more difficult to find a Switch in 2022, the fault of the shortage of semiconductors which complicates the manufacture of the machine. The manufacturer had also revised its sales targets downwards for the fiscal year which ended in March 2022. (from 25 to 23 million copies sold).
Switch sales will continue to fall in 2022
However, Nintendo is convinced that sales will continue to decline in 2022, still because of the previously mentioned difficulties. In fact, BigN has once again returned to its downward sales targets for the next fiscal year which will end in March 2023. Now, Nintendo hopes to sell 21 million consoles.
In addition, the company also expects a general decline in net sales and net profit during the next fiscal year. In 2022, the company recorded staggering net sales of 1695 billion yen, or 12.3 billion euros. Operating profit amounted to 592 billion yen, or 4.3 billion euros. For 2023, net sales could fall to 1.6 trillion yen (11 billion euros) while net profits would fall to around 500 billion yen (3.6 billion euros). It should be remembered that Nintendo has also chosen to stop selling its products in Russia, thus depriving itself of an important market. An important data which inevitably played a role in the new estimates of BigN.
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