Nintendo to split its share price by ten due to fall in Switch sales – World Today News

Sam Nussey

TOKYO (Reuters) – Nintendo on Tuesday announced a 10-fold stock split effective October 1, a move long urged by investors to boost liquidity in the video game maker’s shares.

The surprise announcement comes after Nintendo said it expects to sell 21 million Switch game consoles in the fiscal year that began April 1, down 9% from last year, as the company faces a global shortage of electronic components.

Nintendo sold 23.06 million Switch consoles in the fiscal year ending March, according to the video game maker’s estimates announced in February.

Demand for the Switch, now in its sixth year on the market, was boosted by the November launch of a model with an OLED display that sold 5.8 million units per year on the market but is still out of stock.

Nintendo, which relies on in-house production to boost game sales, expects to sell 210 million software this year, up from 235 million last year.

The company has a solid portfolio despite the Legend of Zelda: Breath of the Wild sequel being delayed until spring 2023, with games like Splatoon 3 coming this year.

The company’s shares are up 5% since the beginning of the year.

(Reporting by Sam Nussey; French version by Helene Vardon, edited by Kate Entringer)

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