Nintendo Shares Lose After Cutting Switch Console Production Target By 20%

Nintendo Co Ltd NTDOF NTDOY will produce about 24 million units of its popular Switch game console in the fiscal year through March, 20% below an original plan Nikkei Asia reports.
The production was affected by the crisis of semiconductors and other electronic parts amid solid demand for Switch, including for its latest version released on October 8.
Nintendo initially aimed to produce 30 million Switch units to tap the pandemic triggered budding demand for computer games.
The emergence of production bottlenecks around springtime for critical components, including microcomputers, led to revising the production targets.
Nintendo President Shuntaro Furukawa acknowledged the inability to manufacture their targeted console units.
Furukawa also admitted the robust demand for Switch.
Retailers have had to ration sales of the latest version by using a lottery system.
The supply crunch has left Switch with a 37% fall in sales to 214,000 units in September year-on-year, marking the third straight month of year-on-year declines.
Nintendo aimed to sell 25.5 million units in FY21 but missed the 28.83 million unit-benchmark sold in FY20, looking for a further drop.
Price Action: NTDOY shares closed lower by 3.55% at $53.57 on Tuesday.