Japanese game maker Nintendo's profits hurt by chips crunch
ABC News
Nintendo has reported its profit for the nine months through December slipped 2.5% as shortages of computer chips hurt production
TOKYO -- Nintendo’s profit for the nine months through December slipped 2.5%, as shortages of computer chips hurt production, the Japanese video game maker behind the Super Mario and Pokemon franchises said Thursday.
Kyoto-based Nintendo Co. recorded a 367 billion yen ($3.2 billion) profit for the period, down from 377 billion yen the previous year. Its sales in the same period fell 6% to 1.3 trillion yen ($11 billion).
Game makers have reaped windfall profits from more people staying home during the pandemic. But sales of Nintendo Switch consoles had more momentum in the previous fiscal year, driven by its hit “Animal Crossing: New Horizons.”
Console sales are often driven by hit games, although the devices tend to sell better early on and then slowly decline in popularity.
