Business

Nintendo cuts console sales, profit decline amid chip crisis

Net profit down 19.4% in first half of 2021

Nintendo has cut its console sales forecast Thursday because of the global chip crisis after its third-quarter earnings declined.

Net sales in the first half of 2021 declined 18.9% to 624.2 billion yen ($5.49 billion), from 769.5 billion yen for the same period last year, according to the Japanese consumer electronics and video game company.

Net profits were down 19.4% to 171.8 billion yen, from 213.1 billion yen.

The Kyoto-based company cut its sales forecast for its popular Switch video game console that is now expecting 24 million units in 2021, down 1.5 million, or 5.9%, from its previous forecast of 25.5 million units.

“Our shipment forecast for the second half was reduced because of the change in our production plan due to the effects of the global semiconductor shortage,” it said.”Unit sales for the entire Nintendo Switch family declined by 34% year-on-year to 8.28 million units.”

The global chip shortage has affected 169 industries, US investment banking company Goldman Sachs said in April, with the most visible sectors being automakers and consumer electronics.

Source
AA

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