Nintendo, Microsoft, Sony, Apple, and many other technology companies have all been impacted by continuing worldwide chip shortages for their own product lines.
In a press conference, Nintendo President Shuntaro Furukawa said that he does not “see an end” to the worldwide chip scarcity and that the prognosis “remains uncertain” at the moment. Nintendo said that stock would be divided into tens beginning in October in an attempt to support the company’s shares as Nintendo seeks to reinvigorate sales of the five-year-old Switch system and overcome the worldwide chip scarcity.
Nintendo President, Shuntaro Furukawaa
The outlook on chip shortages remains unclear. We do not see an end to this situation
Nintendo President Shuntaro Furukawaa told Bloomberg
As the Switch platform reaches its mature phase, Nintendo must promote software sales and live services to maintain long-term profit growth. Hardware sales may continue to fall as the momentum from Animal Crossing fades, unless a new console is announced but not yet confirmed. Nintendo may use software, especially first-party games from blockbuster brands like Pokemon and Mario, to boost top-line and profitability growth. We expect that new software releases will counteract the supply-side effect on hardware, causing the fiscal 2023 consensus to rise.
Nathan Naidu, analyst
The stock split plan would be obviously a boost, I’m just surprised that Nintendo announced a stock-split after having resisted it for such a long time.
Yasuo Sakuma, chief investment officer at Libra Investments
The only option for Nintendo to prop up the hardware’s sales momentum is to release upgraded hardware.
