Nintendo’s full-year sales hit $13B, with hardware held back by chip shortages

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Nintendo reported its sales for the fiscal year ended March 31 hit $13 billion, compared with $13.48 billion a year earlier.

A semiconductor shortage and a tough comparison to the previous year’s big sales of Animal Crossing led to lower overall sales compared to a year earlier.

Analysts expected Nintendo to report revenues of $3.34 billion for the fourth fiscal quarter ended March 31. For the full year, analysts expected revenues of $16.59 billion.

Operating profit for the full fiscal year was $4.54 billion, down from $4.91 billion the year before. Profit attributable to owners of the parent company was $3.66 billion, compared with $3.68 billion a year earlier.

The Switch has now topped 107.6 million hardware units sold, with overall sales now beating the Wii console.

In the fourth fiscal quarter ended March 31, Nintendo shipped 4.1 million Switch consoles, and that means it sold 23.1 million units for its full fiscal year. That hit its revised target of 23 million, down 20% from the previous year thanks to a semiconductor shortage.

Pokémon Legends: Arceus sold 12.6 million units during the quarter.

Looking ahead

Switch OLED.

Nintendo said that for the fiscal year ending March 31, 2023, it expects to convey the appeal of all three of its hardware models — the Switch, the Switch OLED, and the Switch Light — to maintain a high level of sales momentum and expand its installed base further.

Nintendo forecasts that it will ship 21 million Switch consoles in the new fiscal year, with revenues and operating profit down slightly. That means the Switch cycle may have hit its peak. Nintendo expects to sell 210 million units of software this year, compared with 235 million in the previous year.

It expects results on the software side from Nintendo Switch Sports (released in April), and the planned released of Xenoblade Chronicles 3 in July and Splatoon 3 in September. It expects Pokémon Scarlet and Pokémon Violet to debut in late 2022.

Overall, Nintendo expects $12.27 billion in revenues and $3.84 billion in operating profit and $2.61 billion profit attributable to owners of the parent company in the next fiscal year.

“If COVID-19 interferes with production or transportation in the future, this might impact the supply of products,” Nintendo said. It says unpredictable risks include that production might be disrupted again due to increased worldwide demand for semiconductor chips.

Nintendo closed the year with 6,717 employees, up from 6,574 a year earlier.

Originally appeared on: TheSpuzz