Nintendo shares head for biggest 1-day drop in a year after Switch sales projection cut

TOKYO – Nintendo Co Ltd shares fell nearly seven per cent on Wednesday , putting them on track for their biggest one-day drop in a year after the Japanese video game giant cut its annual sales projection for its Switch console by nearly 10 per cent.

However, Nintendo President Shuntaro Furukawa told an earnings briefing that chip supply had started to recover in recent months, helping boost Switch production just as the industry heads into the busy year-end shopping season. Nintendo's Furukawa told a separate briefing on Wednesday that Switch demand and sales momentum remain solid despite supply constraints, and that the company is striving to bring as many consoles as possible to consumers in the holiday season.

"The Switch hardware cycle peaked and we believe that revenues, profits and valuations will now struggle to reach new highs in this cycle," wrote independent analyst Mark Chadwick who publishes on the Smartkarma research platform.Nintendothe latest instalment of its widely emulated action-adventure series, Legend of Zelda: Tears of the Kingdom, in May 2023.

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