Japanese game maker Nintendo’s profits hurt by chips crunch

By YURI KAGEYAMA
AP Business Writer

TOKYO (AP) — Nintendo has reported its profit for the nine months through December slipped 2.5% as shortages of computer chips hurt production. The Japanese video game maker behind the Super Mario and Pokemon franchises said its sales also fell, by 6%. Game makers have reaped windfall profits from more people staying home during the pandemic. But sales of Nintendo Switch consoles had more momentum in the previous fiscal year, driven by its hit  “Animal Crossing: New Horizons.” The Kyoto-based company now expects to sell 23 million Switch machines, down from earlier forecasts. Nintendo faces stiff competition both from longtime rivals such as Microsoft Corp. and Sony Corp. and from newcomers like Netflix and Google.