Nintendo blames falling Switch sales on supply and production issues
Component shortages and subsequent production issues are hampering sales of the Nintendo Switch.
According to Nintendo's fiscal report for the three months ended June 2022, unit sales for the entire Nintendo Switch console family declined by 22.9 percent year-on-year to 3.43 million units.
The company said that while demand remains stable as the Switch celebrates its sixth birthday, the semiconductor shortage and a dip in the number of new third-party titles negatively impacted sales.
Commenting on those supply and production issues, the Japanese company said it expects the situation to "gradually improve" from late summer.
"Due to delays in the procurement of components such as semiconductors this year, we have not been able to conduct production as planned. However, we expect procurement to gradually improve from late summer towards autumn, giving us a clearer outlook regarding production for the remaining calendar year," it wrote.
"In preparation for the holiday season, we will leverage appropriate means of shipment, and work to deliver as many Nintendo Switch systems as possible to consumers in every region."
As for how that impacted Nintendo's fiscal performance, consolidated net sales declined by 4.7 percent year-on-year to 307 billion yen ($2.3 billion) and profit increased by 28.3 percent to 118.9 billion yen ($891.6 million).
Turning our attention to Nintendo's software business, sales of Nintendo Switch titles were down by 8.6 percent year-on-year -- although there were some notable performers including Nintendo Switch Sports (4.84 million units), Mario Strikers: Battle League (1.91 million units), and Kirby and the Forgotten Land (1.88 million units).
Overall, software sales totalled 41.41 million units during
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