Sources: Nintendo will only be able to produce ~24M units of Switch game console in FY 2021 due to chip shortages, 20% below its original plan of 30M
sources: fy30 masia 24 m switch
According to Nikkei, Nintendo will only be able to produce approximately 24 million units of their beloved Switch game console during the fiscal year ending March, which is 20% less than the original schedule.
Production is being held back by a shortage of semiconductors as well as other electronic components amid a booming demand for Switch, which includes the most recent version, which was launched on Oct. 8.
Nintendo’s troubles are an example of the wide-ranging effects of the worldwide supply crisis, which has impacted a vast spectrum of industries, from automobiles to machinery to electronics.
The Kyoto-based company initially had plans to make thirty million Switch units because of the increasing demand for computer games, triggered by the COVID virus that has forced people to stay at home.
But production bottlenecks rapidly began to appear around springtime for important components, including microcomputers. The company decided to lower its production targets since it was unable to obtain sufficient supplies. Nintendo’s suppliers have been informed about the cuts in production.
A Nintendo spokesperson confirmed that production is affected by the shortage of components. “We are evaluating their influence on our output,” said the spokeswoman..
Nintendo president Shuntaro Furukawa has stated that the company was not able to produce the number of consoles they had hoped to and that there was uncertainty over production.
Furukawa stated that Switch was in high demand.In fact, retailers have been forced to restrict sales of the most recent version, which is equipped with organic LED displays and the lottery system.
The shortage of supplies has resulted in Switch seeing an increase of 37% in sales, which were 21,414 units in September compared to one year ago, making it the third consecutive month of declining sales year-over-year, according to Famitsu, the magazine for video games.
By the end of fiscal year 2021, Nintendo hoped to have sold 25.5 million units.However, the goal was just shy of 28.83 million units sold during the prior fiscal year. The company is now preparing to drop even further.
Since its release in 2017, Nintendo has sold over 90 million Switch units. Switch sales are expected to exceed 100 million of the Wii console, which Nintendo has been selling since the release of the console in 2007.
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