Nintendo downgrades Switch sales forecast

Japanese gaming giant Nintendo says the global chip shortage means it won't be able to sell as many of its key product, the Switch console.

Nintendo initially said it expected to sell 25.5 million units in the fiscal year ending next March. But it lowered that figure by 5.9 percent to 24 million in its earnings report for the April-to-September period released on Thursday.

Semiconductor shortages forced the company to review its production plans.

But Nintendo says the decline is more than made up for by robust sales of gaming software. People are apparently playing more games as they stay home during the coronavirus pandemic.

The company raised its full-year net profit forecast by about 3 percent to 350 billion yen, or little over 3 billion dollars.

Nintendo President Furukawa Shuntaro says it may be hard to meet demand for the Switch console in the upcoming holiday shopping season, but the company will produce as many as possible.