Nintendo warns chip crunch may hit Switch during gaming boom

Nintendo Switch pouches are seen at the gaming section of a shop in Tokyo. The company sold 28.8 million Switch units in the fiscal year ended March, surpassing the 26.5 million it projected. — AFP

Nintendo Co’s earnings beat estimates after hit games like Monster Hunter Rise propped up sales of the Switch, but the company warned that global chip shortages may disrupt production of its marquee device.

It forecast 500bil yen (RM18.87bil) in operating profit this year, although Nintendo, like many Japanese companies, often begins the fiscal year with a conservative outlook so it has room to raise the figure later. The company is targeting sales of 25.5 million consoles in the current year ending March 2022. Internally, Nintendo’s management is shooting for production of between 28 and 29 million consoles, according to people familiar with the projections who asked not to be named disclosing company targets.