Nintendo Skips Switch Annual Production Plan By 20 Percent Due To Component Shortages

Bottom line: Like virtually every other manufacturer, Nintendo is grappling with manufacturing challenges stemming from a global shortage of semiconductors and components. Strong demand for the switch, including the new OLED model released on October 8th, is not helping.

Nintendo will produce 20 percent fewer Switch handhelds from its original fiscal year target until March 31, 2022, according to the company. Nikkei Asia

Nintendo originally planned to release a record 30 million Switch consoles in the fiscal year to meet pent-up demand due to the Covid-19 pandemic.

A Nintendo spokesman said Reuters that supply and demand for semiconductor parts is limited and impacts Switch production. “We are assessing the impact,” the spokesman added. More clarification may come later this week as Nintendo releases its latest earnings report on November 4th.

Nintendo released the original Switch on March 3, 2017 as the successor to the Wii U. Switching to a different PDA at a time when rivals Microsoft and Sony, where big-hitting traditional home consoles are going to be a big hit with powerful traditional home consoles, was certainly a gamble, but then-President Satoru Iwata believed in mobile games and unique equipment.

The risk has paid off thanks to Nintendo’s reliable hardware and strong intellectual property, the latter of which continues to drive sales throughout the console’s nearly five years of life. Many speculated that Nintendo would by now have released a more powerful version of the Switch capable of outputting 4K signals, but as recently as September, the company said it had no plans to create such a system.

Image Credit Eric McLean

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