REVEALED: Why Nintendo Switch sales have dropped 23% in 12 months

Nintendo was hit hard by the global chip shortage during the last quarter.

The gaming giant announced Wednesday (August 3) it sold 23% fewer Switch consoles in the April-June quarter than a year before.

Nintendo shipped just over 3.4 million units of its flagship Switch – down from nearly 4.5 million in the same period last year.

However, the Japanese firm said demand was still stable in all regions.

It expects buys to improve from late summer onwards.

Nintendo has also kept its forecast to sell 21 million units in the year through to the end of March 2023.

That number is still down from last year’s total of 23 million.

It would mark the second annual sales decline for its hybrid home and portable Switch device – now in its sixth year on the market.

It follows rival Sony’s report last week that engagement on its PlayStation was down.

Investors are now gauging whether the gaming boom that kicked off during the health crisis – with people stuck at home – is coming to an end.

Overall, Nintendo’s operating profit fell 15% to about $763 million – below analyst expectations.