Nintendo has lower its Switch gross sales forecast resulting from ongoing semiconductor shortages, the corporate introduced in its earnings report. It now expects to ship 24 million Switch models for the fiscal yr ending March 31, 2022 as an alternative of the 25.5 million models it had initially predicted. 

The problem got here into focus this quarter, as Nintendo managed to ship simply 3.83 million Switch consoles in comparison with 6.86 million throughout the identical quarter final yr. So far, its web gross sales for the yr are down 18.9 % to 624.2 billion yen ($5.46 billion) year-over-year. That’s not an enormous shock, nonetheless, as Switch and software program gross sales exploded throughout the COVID-19 lockdown and following that has proved to be inconceivable — notably as chips and parts have since change into extra scarce. 

Despite the revised gross sales expectations, Nintendo expects to match whole income of 1,600 billion yen ($14 billion) from the earlier fiscal yr, thanks partly to video games. It goals to promote 200 million software program models, 10 million greater than final yr, which might assist offset the console gross sales drop. Upcoming titles embody Pokémon Brilliant Diamond and Shining Pearl plus a Zelda-themed Game & Watch.

Despite the diminished expectations and tepid console gross sales this quarter, Nintendo has now bought 92.87 million Switch models up to now. That’s nonetheless wanting the Wii, which has the present house console gross sales file of 101.63 million models shipped. However, if Nintendo comes near matching the 11.57 million models bought throughout final yr’s vacation interval, the Switch might lastly prime that mark by the tip of the yr.