Published , by Donovan Erskine
Published , by Donovan Erskine
With Nintendo’s (NTDOY) Q2 2023 earnings report, the company revealed its financial performance over the previous quarter. While the report primarily shows solid revenue and software sales for The Big N, it also includes some guidance for future sales. Nintendo updated its outlook for Switch sales for the fiscal year 2023, lowering it from its previous estimate.
On the final page of Nintendo’s Q2 2023 financial highlights, the company shares that its outlook on Switch sales for the fiscal year 2023 (April 2022 - March 2023) is 19 million units. This is a slight decrease from its previous earnings report, which forecasted 21 million units for the same period. Nintendo didn’t provide a reason behind the decrease in its outlook, but there could be several contributing factors. Production could be moving slower than expected due to ongoing chip shortages, or demand for the Switch may be decreasing faster than previously thought.
The Switch continues to move base models, with Switch OLEDs also selling a decent chunk of units since its 2021 launch. Nintendo just released a special edition of that model themed around the upcoming Pokemon Scarlet and Pokemon Violet games, which will likely be a big gift item this holiday season. Outside of that, there don’t appear to be any new Switch models in the near future.
Regardless of the reasoning behind the change in outlook, it will be interesting to see how the Switch hardware performs throughout the rest of the financial year. With a new Zelda game on the horizon, the hybrid console could see a solid bump to start off the following quarter. Nintendo’s Q2 2023 earnings report also revealed that Animal Crossing: New Horizons has sold over 40 million units worldwide, making it the second highest-selling game on the Nintendo Switch.