TOKYO, Reuters – Japan’s Nintendo Co Ltd cut its Thursday dividend Change (NYSE:) Sales forecast for 24,000,000 units, up from 25.5 Million units in March. This is due to global chip shortages that have affected production.

Nintendo sold 8.28M units of Switch consoles in six months ending September, as compared with 12.53M in the previous year.

This Kyoto-based company is struggling to sell its Switch device which has been on the market for five years.

Nintendo released the Switch OLED model for $349.99 on Oct. 8, ahead of the end-of-the year shopping season. However, it is in very limited supply in many countries.

Analysts and investors are arguing about the timing of Switch peak sale, as console gaming is a highly cyclical industry and Nintendo heavily dependent on one system.

Early data shows that Switch OLED sales are increasing due to an improved model. Some observers are concerned that more buyers will be upgraders than new customers. This could reduce the chances of software sales bouncing back.

Atul Goyal of Jefferies (NYSE) wrote that “our main concern” was still the lackluster Nintendo game pipeline and a declining tie ratio, which is likely to lower earnings. He had written this ahead of earnings.

The Tie Ratio, which refers to how much software is purchased by hardware owners, is closely monitored.

According to Refinitiv data, however, the majority of analysts are bullish. 11 out 18 have a strong buy or buy rating for the stock.

Nintendo shares declined around 25% in the past year.