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Nintendo Says Chip Shortage Caused Lower Q1 FY2023 Switch Sales

Nintendo Switch OLED 2
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Nintendo says that Switch sales for Q1 of the fiscal year 2023 were lower than expected due to the chip shortage. The company has had problems with procuring the necessary components, such as semiconductors, that would allow it to complete production of the Switch as planned. This resulted in the company producing less Switch units than expected, leading to an overall decrease in hardware sales.

According to the company’s latest earnings, Nintendo Switch sales are down to 3.43 million units from 4.45 million units the same time last year. A decline of 22.9%. Nintendo also states that games from other software publishers helped drive sales of the Switch in the first quarter of the last fiscal year. Assisting in the higher number of hardware sales.

Software sales were also down in the same period. Dropping to 41.41 million units from 45.29 million units a year ago.

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Beyond Q1 FY2023, Nintendo Switch sales could improve to hit targets

Although hardware sales were down in the first quarter of the fiscal year 2023, it may be possible for Nintendo to bounce back. The company states that it expects the procurement of components to improve from “late Summer towards Autumn.” This should give it a “clearer outlook” of Nintendo Switch production for the rest of the year.

It also plans to utilize “appropriate means of shipment” to help deliver a larger number of Switch units to consumers.

Nintendo Switch OLED was the highest selling model

When it comes to the different Switch variants, the OLED model was the highest selling. Nintendo reports that out of the total 3.43 million units Switch units sold, 1.52 million of those were the Switch OLED. The regular Switch meanwhile accounted for 1.32 million units, and the Switch Lite accounted for 0.59 million units.

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In terms of software, Nintendo had 4 games that were able to reach more than a million units sold for Q1 FY 2023. Nintendo Switch Sports was the biggest hit at 4.84 million units sold. Next up was Mario Strikers: Battle League at 1.91 million units. Followed closely by Kirby And The Forgotten Land at 1.88 million units, and finally Mario Kart 8 Deluxe at 1.48 million units. All games were first-party titles.