Nintendo lifts profit forecast, sees lower sales

STORY: Nintendo expects to sell fewer Switch consoles this year than it previously expected.

On Tuesday (November 8) it cut its full-year sales projection by nearly 10% after microchip shortages constrained production.

However, it has raised its annual net profit forecast thanks to a softer yen, which boosts the value of earnings in foreign currencies.

The Japanese firm, which earns about 80% of its revenues overseas, expects its net profit to hit $2.73 billion for the year to March.

That is up from the previous forecast of just over $2.3 billion.

The creator of blockbuster titles like "Super Mario Bros." and "Legend of Zelda" cut its Switch console sales forecast for the business year to 19 million units from 21 million.

Company President Shuntaro Furukawa said, however, that chip supply had begun recovering in recent months, helping boost production.

That's just in time for the crucial year-end shopping season.

Nintendo's software sales over the three-month period rose 11%, helped by strong demand for the latest "Splatoon" title.

The game sold more than 3.45 million units following its debut – Nintendo’s highest ever domestic launch sales.