Nintendo shares performed lower than anticipated as demand cools for the Switch consoles and software. The Japanese videogame company has reduced its sales outlook for both hardware and software from an initial forecast of 1.65 trillion YEN ($12.6 million) down to 1.6 trillion yen ($12.2 million). In a statement, Nintendo commented that they “will strive to invigorate the platform by continually introducing new titles as well as motivating even more people to keep enjoying Nintendo Switch.” Nevertheless, expected sales of the hardware units were reduced by approximately 5.3% to 18 million and forecasted sales for the software were reduced by 2.4% from 210 million to 205 million. Nintendo is joined by other videogame companies that have also tempered performance expectations for the coming fiscal year.

Nintendo reported fiscal third-quarter revenue of 638.2 billion yen, which matched analyst projections, based on FactSet data. Furthermore, the company’s earnings per share of 99.44 yen exceeded the anticipated 99 yen per share, as reported by FactSet. In contrast, Take-Two Interactive Software (TTWO) reported disappointing results and decreased its outlook on Monday. Nintendo expressed that supply shortages of semiconductors and other components hindered hardware production until late summer. Subsequently, the company’s American depositary stock decreased by 4.5% to $10.10 in Tuesday’s trading. Nintendo shared that, by December 31st, a total of 122.55 million lifetime Nintendo Switch units had been sold, whereas software sales on the system reached 994.3 million. Mario Kart 8 Deluxe was the top-selling game, with 52 million units sold, followed by Pokemon Scarlet and Pokemon Violet, which combined for 20.6 million units by the end of the quarter.

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