Nintendo Switch 2 Sales Fall 41%, Chip Costs Create Pressure

Nintendo's Switch 2 console sales in the July-September period decreased by 41.2% compared to the same period last year, falling to 2.67 million units. This decline highlights the company's loss of momentum on the hardware side. Despite the sales decline, Nintendo's six-month net profit increased. The company's ability to maintain profitability was likely supported by software and other revenue streams, as well as cost management. Meanwhile, rising memory chip costs are putting pressure on console production. This increase in input costs stands out as a potential risk factor for the company's margins. Nintendo has not made any changes to its annual console sales target. The company's decision to maintain its current target indicates that expectations for the remainder of the year remain unchanged. This is not investment advice.