Nintendo Falls After Issuing Chip Warning, Conservative Outlook
- Component shortages have already disrupted Switch production
- Conservative forecast for year ahead leaves room to increase
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Nintendo Co. shares slid as it warned that component shortages could affect production and gave a conservative profit forecast for the year, overshadowing better-than-expected earnings for the past quarter.
The Kyoto-based studio forecast a 22% drop in operating profit in the current fiscal year, to 500 billion yen ($4.6 billion), significantly below analysts’ expectations. Nintendo, like many Japanese companies, often begins the year setting expectations low so it has room to upgrade its outlook later.