Switched off: Nintendo sales tumble as lockdown gaming boom recedes
Nintendo, which welcomed a frenzy for its newest console the Switch last year, has seen hardware sales tumble 21.7 per cent as the lockdown gaming boom receded amid lifting restrictions.
The Japanese gaming giant posted record profits last year but has today reported that its software sales were down 10.2 per cent year on year.
Nintendo pulled in around $846m in revenue in the three months to June, some 10bn yen less than in the same period last year.
The firm’s hardware and software sales were significantly buoyed by the success of ‘Animal Crossing: New Horizons’ in March last year, which was at the heart of an internet-craze during lockdown measures in the UK and internationally.
Analysts cautioned a market slowdown for the entertainment sector, which may hit Nintendo harder if it keeps up its bets on its Switch console.
Nintendo’s new console sales typically peak in the third year and then taper off. And with the Switch hitting its third birthday last year – the gaming giant may see sales continue to sink.
The Japanese firm confirmed last month that it is looking to release a new model of the Switch in October – in time for a new bout of Christmas sales.
However, Nintendo is susceptible to the global chip shortage, which has hindered tech-driven companies from automotive industries and beyond.