Nintendo has reduced its forecasts for the next financial year amid the ongoing COVID-19 crisis, stating that it expects both hardware and software sales to be impacted if the situation continues.
As part of the company's financial earnings report for its 2020 financial year, Nintendo explained that while supply of parts for the manufacture of Switch consoles has nearly returned to normal, it anticipates continued issues with supply chains globally as retail and e-commerce routes remain affected by varying degrees of lockdown regulations. As a result, Nintendo forecasts that Switch hardware sales will drop from 21.03 million units in this last financial year to 19 million during the next. Similarly, it expects software sales to decrease from 168.72 million to 140 million.
Nintendo explained in its report that the uncertainty of the situation and the shift to working from home has had an impact of software production. The report states that the effect is worse outside of Japan, with Nintendo unable to predict development delays with as much accuracy. As a result, the company warns that its future software plans will be impacted.
The company was pleased with its performance over the past financial year however, with higher than expected returns on both hardware and software sales. Animal Crossing: New Horizons was particularly strong, managing to sell more than a million copies a day in its first 11 days on sale. The Nintendo Switch has also new reached more than 55 million consoles sold, with over 21 million sold over this past financial year alone.
As part of the company's financial earnings report for its 2020 financial year, Nintendo explained that while supply of parts for the manufacture of Switch consoles has nearly returned to normal, it anticipates continued issues with supply chains globally as retail and e-commerce routes remain affected by varying degrees of lockdown regulations. As a result, Nintendo forecasts that Switch hardware sales will drop from 21.03 million units in this last financial year to 19 million during the next. Similarly, it expects software sales to decrease from 168.72 million to 140 million.
Nintendo explained in its report that the uncertainty of the situation and the shift to working from home has had an impact of software production. The report states that the effect is worse outside of Japan, with Nintendo unable to predict development delays with as much accuracy. As a result, the company warns that its future software plans will be impacted.
The company was pleased with its performance over the past financial year however, with higher than expected returns on both hardware and software sales. Animal Crossing: New Horizons was particularly strong, managing to sell more than a million copies a day in its first 11 days on sale. The Nintendo Switch has also new reached more than 55 million consoles sold, with over 21 million sold over this past financial year alone.
