Disruptions in Nintendo’s supply chain cause Switch sales in Japan to fall 33%

Image: Nintendo

Nintendo is reportedly experiencing supply chain disruptions in Japan again. The company is currently experiencing a “disappointing” sales slowdown, with 33% fewer units sold in April-June compared to last year, according to a new report from the Nikkei. Famitsu data shows Switch sales were around 840,000 units in the most recent quarter.

A Nintendo spokesperson told Nikkei how “the lack of chip materials” has affected Nintendo’s production line. During this period (April – June), there was a decrease of about 10% compared to 2020.

Nintendo is also believed to be having trouble purchasing parts for Bluetooth wireless components (used in controllers and mainstream devices) as well as analog ICs for controlling currents. Negotiations are apparently underway to acquire the necessary parts, but a Nintendo spokesperson said “the outlook is unclear.”

The Japanese company is currently competing for parts with Another gaming companies (such as Sony, which is also experiencing supply chain disruptions). In addition, there are technology companies such as smartphone makers and even automotive companies that require these vital components.

Nintendo intended to sell 21 million Switch devices before the end of the year ending March 2023, but that’s not including the latest round of shortages – the company is now expected to revise its 340 billion yen ($2.5 billion) net profit forecast for the current financial year. year. year.

As of March 31, 2022, over 107 million Switches have been sold, according to official figures from Nintendo. The company’s software lineup for the rest of 2022 currently includes games like Xenoblade Chronicles 3, Splatoon 3 and Bayonetta 3.

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