Nintendo lowers Switch sales forcecast for 2022 due to ongoing chip shortages, as the company plans on selling more software to make up for fewer console sales.
A new report (via Nikkei Asia) confirms Nintendo lowers Switch sales forcecast to 20 million units for this fiscal year. This would be a decrease of roughly 10% compared to that of fiscal year 2021. These numbers are all despite the strong demand for the console, which includes the OLED model that was released late last year, as worldwide chip supply shortages continue to take their toll on markets overall.
Lockdowns in China, where the Switch is produced, due to the coronavirus and the ongoing war with Russia and Ukraine are both considered to be the major factors towards the reduced ability to produce more consoles. Depending on how both events continue to shape up, it could even be possible that the console will fall short of this 20 million mark set by the company.
While Nintendo lowers Switch sales forcecast, it isn’t all decline according to the company’s plans. Nintendo plans on increasing software sales in response to the decrease in hardware sales.
Thus far, there are a number of heavy hitters set to release during this fiscal year. Such titles include Fire Emblem: Three Hopes, Splatoon 3, Pokemon Scarlet & Violet, and Xenoblade Chronicles 3. Given that a Nintendo Direct is most assuredly coming around the time that E3 would’ve taken place – there are likely more big name titles on the way for this year the company hopes to have successful launches.
It is likely a disappointment for Nintendo that their highly anticipated game, Legend of Zelda: Breath of the Wild 2, was delayed into 2023. While their announcement stated it would be the first half of 2023, it’s possible to launch within this current fiscal year which ends at the end of March 2023.
It’s interesting that Nintendo lowers Switch sales forcecast despite the console being one of their best selling consoles of all time. It has been stated that they currently view themselves in the middle of the console cycle, with no plans in the immediate future to announce a successor. Considering the supply issues facing the console these past few years, it will be interesting to see how console sales will shape up once the market is able to correct itself.
