Nintendo shares plummet after Switch sales forecast cut

Shares of Nintendo Co Ltd fell 6.5% in early trading on Wednesday after the company announced it had cut its annual sales forecast for the Switch game console by nearly 10%, citing a shortage of chips. Currently, Nintendo's shares fell more than 4% to $9.9. Nintendo's second-quarter revenue was 349.514 billion yen, lower than market expectations of 353.98 billion yen; net profit was 1114.67 yen, exceeding the expected 950.5 yen. Nintendo's gaming hardware, the Switch, shipped 3.22 million units in the fiscal second quarter that ended September, with cumulative sales exceeding 114.33 million units.

Nintendo previously stated that benefiting from the depreciation of the yen, the company raised its full-year revenue forecast to 1.65 trillion yen, from 1.6 trillion yen previously; and raised its net profit forecast to 400 billion yen, previously 340 billion yen; lowering the full-year Switch sales forecast to 19 million units, from 21 million previously.

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