Nintendo Switch sales fall amid chip shortage, but demand 'remains stable'
Nintendo Switch sales fall amid chip shortage, but demand 'remains stable'
Nintendo's first quarter of its financial year saw a steep decline in hardware sales
➡️ The Shortcut Skinny
📉 Nintendo Switch sales fell 23% in Q1 2022, and software also fell by 8.6%
🚢 Nintendo shipped 3.43 million consoles to retailers
😲 The hybrid console has now reached 111 million lifetime sales
⚽ Mario Strikers: Battle League sold just under 2 million copies, as first-party titles sold more in Q1 2022 than any previous Q1 period in the Switch’s history
Nintendo saw a steep decline in Switch sales in Q1 2022, shipping 3.43 million units compared to 4.45 million during the same period last year.
The Kyoto-based company’s earnings report also showed that software sales fell by 8.6%, while digital sales rose by 16%.
The result of a drop in hardware and software sales led to Nintendo recording an operating profit of 101.6 billion yen (around $763 million), which is down from the previous year and below expectations.
Nintendo blamed the drop in Switch sales on the impact of the global shortage of semiconductor components, which led to a decrease in hardware shipments. The company said that even though the console is in its sixth year on sale, demand “remains stable in all regions.”
Even though software sales were down, Nintendo increased its overall percentage of first-party games sold. Games like Mario Strikers: Battle League, Nintendo Switch Sports, and Fire Emblem Warriors helped the company record its second-best first quarter for first-party games sold in the Switch’s history.
Subscriptions for Nintendo Switch Online and the Expansion Pack tier also grew, but the platform holder didn’t share any figures.
Nintendo has several big hitters releasing in the second quarter of the fiscal year. Xenoblade Chronicles 3 was released on July 29, Wave 2 of the Mario Kart 8 Deluxe Booster Course Pass speeds onto Switch on August 4, Splatoon 3 is set to make a splash on September 9, and Pokémon Scarlet and Violet are due in November.
The first limited edition Nintendo Switch OLED will also arrive on August 26, as players can purchase a Splatoon 3-themed console.
The trend continues
Like Nintendo, Sony, and Microsoft both recorded a drop in overall sales compared to the same quarter last year. US consumers are spending less money on video games than they did in 2021, and it’s clear that this change in spending habits has impacted the revenues of all three companies.
It isn’t all bad news, though. Xbox Series X|S continue to break records for Microsoft, while Sony revealed PS5 sales had reached 21.7 million. Nintendo’s first-party success will also please the company ahead of the eventual release of The Legend of Zelda: Breath of the Wild 2., which will be released sometime in 2023.