Shares of Nintendo Co Ltd fell 6.5% in early trading on Wednesday after the company announced it had cut its annual sales forecast for the Switch game console by nearly 10%, citing a shortage of chips.
Currently, Nintendo’s shares are down more than 4% at $9.9. Nintendo’s second-quarter revenue was 349.514 billion yen, lower than market expectations of 353.98 billion yen; net profit was 1114.67 yen, exceeding expectations of 950.5 yen. Nintendo’s gaming hardware, the Switch, shipped 3.22 million units in the fiscal second quarter that ended in September, with cumulative sales exceeding 114.33 million units.
Nintendo previously stated that benefiting from the depreciation of the yen, the company raised its full-year revenue forecast to 1.65 trillion yen, from 1.6 trillion yen previously; and raised its net profit forecast to 400 billion yen, previously 340 billion yen; lowering the full-year Switch sales forecast to 19 million units, from 21 million previously.
