According to a CNBC article Nintendo NTDOY saw a decline in both its profits and revenue, driven by a drop in sales of its flagship gaming console, the Nintendo Switch. For the period from April 2022 to March this year, Nintendo reported full-year sales of 1.6 trillion yen, in line with its own forecast but down 5.5% year over year.

Net income fell more than 9% year-on-year to 432.7 billion yen. However, the company performed better than its own estimate of 370 billion yen. The box office success of The Super Mario Bros. Movie has surpassed all expectations, allowing Nintendo to expand its business beyond consoles and into diverse areas.

Nintendo Switch sales by the numbers

The Japanese gaming giant sold 17.97 million units of its acclaimed Nintendo Switch console series in the fiscal year, meeting its own forecast of 18 million units. However, that number represents a 22% decline compared to the previous fiscal year, which sold just over 23 million Switch units.

According to Nintendo, production was affected by semiconductor and component shortages until around the end of the summer. Additionally, the company said it didn’t see the same sales growth during the holiday season as it did last year.

Nintendo is gearing up for the release of The Legend of Zelda: Tears of the Kingdom, a highly anticipated installment in one of its flagship franchises. However, the company anticipates a further decline in software sales and anticipates 180 million units for the current fiscal year. Nintendo also announced its expectation of a 21.4% decline in net profit and forecast that it would reach 340 billion yen by the end of March 2024.

Have Switch Sales Peaked?

According to Reuters, the Kyoto-based games company continues to strengthen its games portfolio and overcome supply chain challenges; It recognizes the declining demand for…