Nintendo announced on Tuesday (10) a stock split at a ratio of 1 to 10 from October 1, to improve the liquidity of the video game maker’s shares.
The company also warned that it expects to sell 21 million Switch game consoles in the fiscal year that started in April, down 9% year-over-year and the second annual drop, as it grapples with a component shortage, which it is not yet possible to say when it will end. , said Nintendo president Shuntaro Fukurawa.
Demand for the Switch was boosted by the November launch of a model with an OLED display, which sold 5.8 million units as of March, but the updated device remains in short supply.
The stock split comes as tech companies like Amazon and Google owner Alphabet have made similar moves in recent months.
Such developments are often seen as positive for the price of shares, as the lower cost makes them more accessible to some investors.
Nintendo shares are up 5% for the year.
The company sold 23.06 million Switch consoles in the year ended March, compared with a February forecast of 23 million.
Nintendo, which relies on in-house titles to boost game sales, expects to sell 210 million units of software this year, up from 235 million last year.
Source: CNN Brasil
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