Japanese giant Nintendo recently published numbers that show its sales dropped by almost 10%, with numbers dropping for nearly all its products. Comparing to the boom they experienced last year when quarantined people resorted to video games, Nintendo’s operating profit is almost $1 billion down.
The company’s statement blames the results on the pandemic, claiming it caused significant delays in logistics that caused a shortage of integral parts. The deficits led to manufacturing problems that endangered the business as the world is reopening after the pandemic.
With the sales of Switch dropping by 22% and Switch Lite dropping by almost 50%, Nintendo Switch took place as the only device whose sales increased. However, the increase is estimated to be 8%, and it’s not sure what could happen by the end of Q4.
Nintendo’s software sales didn’t escape this trend either. Their Animal Crossing was an absolute sensation of the video gaming world throughout the pandemic, selling in over 10 million copies and accounting for 40% of the company’s software sales. At the end of Q2, the numbers show sales of 1.3 million copies worldwide, which indicates a severe sales drop.
After a quarterly rise of 400% they experienced during the pandemic, Nintendo hopes to soften the blow by marketing a new console. The Nintendo Switch OLED is scheduled to come out in October, offering users an updated Nintendo Switch experience.