Nintendo experienced its biggest intraday drop in stocks in 12 months, nearly 7% on Wednesday. This comes after the company announced it was cutting its sales forecast for the Switch game console by nearly 10% for the year.
The Kyoto-headquartered Japanese video game and gaming system maker announced on Tuesday that it could only sell 19 million Switch consoles in the current fiscal year, 2 million less than planned. This is due to a reduction in production due to a shortage of components.
However, Nintendo President Shuntaro Furukawa told a news briefing that chip shipments have begun to recover in recent months, allowing the Switch to ramp up production just in time for the booming holiday season.
Furukawa said Switch demand and console sales dynamics remain strong despite supply constraints due to component shortages, and the company will try to bring as many consoles to consumers as possible during the holiday season, Furukawa said. However, Nintendo’s share price on the Tokyo Stock Exchange traded down 6.7%, the biggest one-day drop since October 2021.
Nintendo has promised that it will not raise the price of the Nintendo Switch video game console anytime soon. However, Furukawa noted during the briefing that the sharp and prolonged depreciation of the yen has hurt the profitability of the company’s hardware business in Japan, hinting at the possibility of higher prices for the console in the future.
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