This is sad news for Nintendo fans out there. According to recent reports, video game company Nintendo has no plans to release a new Switch in the current fiscal year, following a plunge in sales in the last quarter.
In a report from Eurogamer, the window for a new Nintendo model release is getting smaller. The report stated that Nintendo would not launch another new Switch model during the current financial year ending in March next year.
Nintendo Will Not Launch a New Switch Model This Year, Says Reports
In retrospect, a recent report here in Gamenguide shares that multinational company Nintendo notes a staggering 23 percent decline in console sales due to the continuing global chip shortage. The low supply of chip components is primarily why Nintendo capped console sales. Despite the big numbers, the videogame company points out that this problem is temporary and that a steady supply of semiconductors is imminent soon.
Simply put, gamers shouldn't be alarmed because these revenue declines result from several temporary factors. Some gaming companies cannot manage fresh game releases because of the pandemic's restrictions. Due to the epidemic and the situation of the economy, several businesses are also limiting the supply of consoles.
ALSO READ: Nintendo Reports Switch Sales Decline as Chip Shortage Continues
According to a report from Nikkei, "While the production of game machines is restricted due to the prolonged shortage of semiconductors, demand for "staying at home" under the new coronavirus is slowing down."
It is possible that inflation would reduce consumer spending on entertainment, which might mean a plateau for the booming video game industry. This means that the video game company may focus on its current problems rather than hastening up the release of new edition consoles. Nintendo president Shuntaro Furukawa as reported by Nikkei, said that sorting the problem on semiconductors is now Nintendo's immediate goal.
Nintendo: Sorting Out Semiconductor Shortage Is Immediate Goal.
In the case of the rumored Nintendo Switch 2 or Pro, it is very unlikely that Nintendo will be releasing a new edition anytime now. With the decline in sales in the last quarter attributed to a shortage in component supply, the company can bank on guaranteeing a steady supply of semiconductors first.
According to reports, despite the year-over-year fall, Nintendo nonetheless managed to generate a net profit of 118.9 billion yen (USD $893 million) for the first two quarters of the current year. This amount can be traced to the yen's declining value. In spite of this, the business remains optimistic about its 340 billion net profit forecast for the first quarter of 2023.
Whether inflation played a role in the fact that many gaming companies experienced a decline in revenue in the second quarter of 2022 is still debatable. These alarming figures reveal a lot about the organizations that control the video game market, yet it is indisputable that gamers are still eagerly anticipating the newest releases.
In other news, the second quarter of this year saw a $1.78 billion fall in US consumer spending on video game products, according to market research firm NPD. Following this pattern, video game sales this year have decreased by 13% compared to last. Both of these conclusions are based on data from Microsoft and Sony.
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