Nintendo shares head for biggest one-day drop in a year after Switch sales projection cut

Shares in Nintendo Co Ltd fell nearly 7 per cent, putting them on track for their biggest one-day drop in a year on Wednesday after the Japanese videogame giant cut its annual sales projection for its Switch console by nearly 10 per cent.

The Kyoto-based company on Tuesday cut its sales forecast for the Switch to 19 million units for this business year from 21 million, as microchip shortages constrained production.

That was in contrast to Sony Group Corp, which this month signalled that supply chain snarls that hampered its gains business were easing.

Nintendo President Shuntaro Furukawa told an earnings briefing on Tuesday that chip supply had begun recovering in recent months, helping boost Switch production. The industry is heading into the crucial year-end shopping season.