Nintendo warns chip shortage will hit Switch sales

Nintendo has lowered forecasts for sales of its Switch handheld games console by 1.5 million units.

The Kyoto-based game giant now says it expects to sell 24 million units this financial year - having previously forecast sales of 25.5 million units.

The Animal Crossing maker said the new forecast was because of a change in its production plan, due to the effects of the worldwide semiconductor shortage.

Chip designers ARM recently warned the scarcity could delay Christmas gifts.

"Our shipment forecast for the second half was reduced because of the change in our production plan due to the effects of the global semiconductor shortage," Nintendo wrote in a document to go with its financial results.

"On the other hand, we revised the Nintendo Switch software forecast up" it said, predicting that it would sell 10 million more games than it had previously thought, bringing the total to 200 million.

A number of other companies have been predicting supply issues.