Nintendo Switch 2 sales fall 41% in fiscal Q2 amid price hikes and chip shortage
Nintendo reported a 41% year-over-year decline in Switch 2 sales for the quarter ending September 30, while revenue and profit also missed analysts' expectations.
Nintendo said it sold 2.67 million Switch 2 units in the three months ended Sept. 30, a 41% drop from the same period a year earlier and below the 3.82 million units sold in the previous quarter. The decline follows price increases introduced in the United States, Canada and Japan after an earlier hike in Japan earlier this year.
The company attributed part of the pressure to a global shortage and rising cost of memory chips, a key component of its consoles. Despite the slowdown, Nintendo kept its fiscal-year sales target of 16.5 million units, which runs through March 2027.
Revenue for the quarter came in at 448.2 billion yen, short of the 481.37 billion yen forecast, while net profit was 73.5 billion yen versus an expected 82.16 billion yen.
The firm highlighted recent game releases such as "Tomodachi Life: Living the Dream" and a new Pokémon title that gained viral attention, but noted the absence of a major new franchise launch.
"Nintendo's only real blockbuster this fiscal year is the Ocarina Of Time remake. It's not enough to make investors happy, especially after the device is now as expensive as it is," said Serkan Toto, CEO of Kantan Games.
"It's getting harder and harder to sell video game hardware these days, and only hits help. Nintendo must step on the gas and deliver more big games next fiscal year to make sure the Switch 2 momentum continues," Toto added.
Analysts expect the recently released remake of "The Legend of Zelda: Ocarina of Time" could provide a short-term sales boost, while Nintendo has additional Pokémon titles planned for 2027.