Due to a prolonged shortage of chips, Nintendo has reported a decrease in the number of Switch consoles sold during the quarter compared to the same period in the previous year.

After releasing earnings that were in line with expectations, Nintendo Co. has adjusted its fiscal-year forecast for Switch console sales by reducing it by 10% to 19 million units.

During the quarter ending in September, the Kyoto-based company recorded an operating profit of 118.7 billion yen ($809 million), which is higher than the 100.2 billion yen recorded in the corresponding period last year. The consensus estimate for profit was 117.6 billion yen. While the company has raised its net income forecast for the year, citing the weaker yen as a significant factor, it has maintained its full-year operating profit projection of 500 billion yen.

Nintendo acknowledged that one of the reasons for the decline in Switch console sales during the quarter was the prolonged chips shortage. In response, the company has adopted a strategy of front-loading production to ensure maximum availability during the holiday shopping season. Since September, there has been an improvement in production output.

President Shuntaro Furukawa confirmed during a briefing following the release of the results that there is still strong demand for the console.