sources 24m switch fy 30masia
Nintendo will only be able to produce about 24 million units of its popular Switch game console in the fiscal year through March, 20% below an original plan, Nikkei has learned.
Its production has been held up by shortages of semiconductors and other electronic parts amid strong demand for Switch, including for its latest version released on Oct. 8.
Nintendo’s trouble is a reminder of the far-reaching impact of the global supply crunch that has affected a wide range of industries from autos to electronics to machinery.
The Kyoto-based company originally planned on producing a record 30 million Switch units on the back of rising demand for computer games triggered by the COVID pandemic, which has forced people to spend more time at home.
However, production bottlenecks quickly emerged around springtime for key components including microcomputers. The company concluded it would have to revise down production targets as it was not able to secure enough supplies. Nintendo’s suppliers have already been notified about the production cuts.
A Nintendo spokesperson acknowledged that the production is being affected by component shortages. “We are assessing their impact on our production,” the spokesperson said.
Nintendo President Shuntaro Furukawa had said the company was unable to manufacture as many console units as it had wanted to and that uncertainty remained over production.
Furukawa had said demand for Switch was still strong. Indeed, retailers have had to ration sales of the latest version, which is fitted with organic light-emitting diode displays, by using a lottery system.
The supply crunch has left Switch with a 37% fall in sales to 214,000 units in September from a year ago, marking the third straight month of year-on-year declines, according to video game magazine Famitsu.
Nintendo had hoped to sell 25.5 million units in fiscal 2021. But the target was already shy of the 28.83 million units it sold in the previous fiscal year. Now, that is set to fall further.
Nintendo has sold more than 89 million units of Switch since releasing the console in 2017. Switch sales are on course to surpass the 102 million units of Wii that Nintendo has sold since releasing that console in 2006.