Nintendo announces 10-1 stock split, projects a 9% fall in Switch sales

Japan’s Nintendo Co Ltd has announced a 10-1 stock split effective Oct. 1.

The move is touted to improve the liquidity of the videogame maker’s shares.

Nintendo announced the stock split as it said it expects to sell 21 million Switch games consoles in the financial year that started on April 1.

That represents a 9% year on year and second annual fall which underlines the company’s grapples with component shortages.

Such splits are often seen as positive for the share price of companies as the lower cost makes them more accessible to some investors.

Nintendo’s shares are up 5% year to date and closed flat ahead of its earnings announcement.

Nintendo sold 23.06 million Switch consoles in the year ended March. That compared with a forecast of 23 million it made in February.

Nintendo expects to sell 210 million units of software this year, down from 235 million last year.