Nintendo reports slump in quarterly sales for its flagship Switch console

FILE PHOTO: The Nintendo logo is displayed at the Nintendo Tokyo store, in Tokyo, Japan, Nov. 19, 2019. REUTERS/Issei Kato/File Photo

TOKYO (Reuters) -Japan's Nintendo Co Ltd said on Thursday sales of its Switch console fell 22% in the first quarter as demand for the hit device fades in its fifth year on the market.

Investors are watching gaming firms closely for signals that the COVID-19 pandemic sales boom may be running out of steam. Nintendo is highly dependent on the cyclical console business, with sales of its devices traditionally peaking around the fifth year.