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Nintendo hurt by chips crunch

Picture of Mario Brother's image

Getting your child to step away from their video games may have just gotten easier… for now.  The microchip shortage affects more than just the automobile industry, Nintendo profits slipped 2.5%, “as the shortage of computer chips hurt production.”

Nintendo, the maker of the Super Mario and Pokémon franchises, like many other game makers benefited from high profits when people stayed at home during the pandemic and sought ways to keep themselves entertained.  But it wasn’t their highest profit console sales year surprisingly, since most of the console’s sales are driven by hyped-up games that are released.  Nintendo has cut its forecast due to the unprecedented sales last year as well as the computer chip issue.

The chip shortage affects the manufacturing of existing products and the innovation and design of new products.  Add to this equation the competition for Nintendo; Sony and Microsoft, and newcomers, Netflix and Google, and you can see why the need for a reduced forecast was needed.

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