Nintendo Switch and PS5 sales held back by chip shortages

Both Sony and Nintendo reported their fiscal results for March 2022. They both blame shortages of semiconductor components for their console sales.

Sony stated that 11.5 Million PlayStation 5 consoles were shipped during fiscal 2011. Although this brings the PS5s’ total sales to 19.3M, it still exceeds the 3 million that Sony set as its latest target.

Meanwhile, Nintendo reported that combined sales of all three Switch consoles — Switch, Switch Lite and the new OLED model — were down 20% year-over-year. “Sales this fiscal year were affected by shortages of semiconductor components and other parts,” Nintendo said in its statement, although it also noted that “the March 2020 release ofAnimal Crossing New Horizons was a major driver of hardware sales last fiscal year” — a reference to the huge sales boost that game received during the early stages of the coronavirus pandemic.

Both companies had very different perspectives for the coming year. Sony is optimistic, telling investors on the earnings call (as reported by VGC) that it felt “very comfortable” it could ramp up PS5 shipments to 18 million in the fiscal year ending March 2023, a considerable increase on this year’s performance. If Sony manages to make the consoles, there is a lot of consumer interest.

Nintendo stated however that sales and operating profits would be down slightly in the 12-months ahead. Its statement to investors didn’t give an explicit reason for this. It appears that the software portfolio is quite thin (featuring fewer features). Pokémon ScarletAnd VioletThe delayed sequel is not available. The Legend of Zelda – Breath of the WildIt would appear that ), is the cause.

Switch’s age may be a factor, too. PS5 is still at the start of its journey, while Nintendo’s handheld hybrid is, realistically, past the midpoint of its lifespan, at the very least. If its extraordinary success story has peaked — sales of the console now stand at over 107 million — then we have reached the point at which Nintendo investors will start to ask what’s next.

However, Switch will not be abandoned by anyone in a rush to get rid of it. Nintendo’s report noted that Switch was the platform with the highest number of software units in sales in 2012. Although it didn’t have the same impact as, New HorizonsBoth Pokémon Brilliant DiamondAnd Shining PearlAnd Pokémon Legends: ArceusA total of 14.65 Million and 12.64 Million units were sold, respectively.

Sony also reported record sales of its games, with the quarter ending almost at doubling the year-on-year sales, thanks to the release of Horizon: Forbidden WestAnd Gran Turismo 7. As pandemic lockdowns in other parts of the globe eased, PlayStation Plus subscribers were slightly less active than before.