Nintendo expects 23% drop in profit as Switch sales fall

Company says console demand down as inflation hits consumer appetite

The Nintendo Switch console, a big winner at the outset of the pandemic, has become a victim of the global semiconductor shortage. (Photo by Ken Kobayashi)

NATSUMI KAWASAKI, Nikkei staff writer

February 7, 2023 16:26 JST

Updated on February 7, 2023 18:27 JST

TOKYO -- Nintendo on Tuesday said it expects net profit to tumble 22.5% to 370 billion yen ($2.79 billion), wider than an earlier forecast drop, for the year ending in March from the previous 12 months, due to falling popularity of its Switch console.

"Changes in consumer behavior due to inflation and more entertainment options in the post-COVID economic reopening is making it harder than in the past for Nintendo Switch consoles to be consumers' first choice," President Shuntaro Furukawa said at a press briefing.