Nintendo President: Switch Production Affected by Chip Shortages - News
by William D'Angelo , posted on 03 September 2021 / 2,881 Views
Nintendo president Shuntaro Furukawa in an earnings call with investors via Nikkei has revealed Nintendo Switch production has been affected by the chip shortages that have severely limited the stock of the PlayStation 5 and Xbox Series X|S.
"Due to the global shortage of semiconductor materials, we are not able to produce all the products we want to," said Furukawa. "We are doing everything we can, but there is an increasing sense of uncertainty about production plans.
"Our earnings forecast is based on the assumption that we will be able to secure parts and materials, and if the situation changes, we would like to respond by revising it."
Nintendo Switch lifetime shipments reached 84.59 million units as of March 31, 2021. Nintendo has forecasted it will ship 25.5 million Switch units in the fiscal year ending March 31, 2022.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.
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Wow. Even switch can't escape Covid disease :P. Maybe even production wasnt ready for it to sell 450k+/week for so long. Mighty impressive for Nintendo!
Nooooooooo damn itt
So…. The covid situation is actually not helping the switch? Lies!!!
Not necessarily. Without Covid, demand might be lower so that even if they were able to meet the demand, they would be selling fewer units overall.
Well, since there will never be actual proof of that, only speculation. On the other hand, this is a reality. There is a shortage of materials, so nintendo is not able to keep with demand. I wonder how this story will end
The fact that I jump is observable fact. Gravitational theory is only theory. I will go up and not come back down.
There’s proof of gravity….. never i said a word about theories.
There's no way to "prove" gravity, or any law which only is constructed from past inference. Citations being; the scientific method... David Hume Enquiries on Human understanding... etc. But you should argue there's good reason not to jump out the window even if there's no proof you'll fall.
That's the point; to show that an argument of the form "x has no proof" has in itself no justificative power, just like my parody argument. In other words, give me a reason to believe you that covid hasn't raised demand, for there's a lot of evidence (game sales, gpu demand, industry analysts) to suggest that it has.
Without Covid, ps5/xbox sex would be selling fewer units overall.
Without Covid, the demand for ps5/xbox sex might be lower so that even if they were able to meet the demand, they would be selling fewer units overall.
I wonder how's this going to affect the software schedule of everyone. After all, if they can't really sell more consoles because they can't make them, why not just wait until supply can match demand? I feel we're going to see a lot of delays and 2022 launches this E3.
Sitting on games raises its own problems. You want to make sure that the Switch is perceived as a hot console with a good library, and having a drought might impact that at a certain point.
More importantly though, Nintendo's main objective is to sell software. If the software is all crammed into one year, then they wind up competing with eachother, because people are only going to buy so much. I don't think condensing the release schedule benefits them at this point.
Actually, the games are designed to sell the hardware. That's always what Nintendo has said. They ultimately make more money on the software, but the goal is to sell the hardware. At that point, hardware can sell more software.
Because they make far more profit from selling games than they do Switch's. If they wait, then not only do their hardware sales stall but so do their software ones. They want to make profit just like any other business.
The Switch is still a massive marketplace with 85+ million potential customers buying games.
Software wont be affected. They aren't going to sit on software. Waiting until supply can match demand benefits no one. People who can and want them cant get them and Nintendo just sits on consoles. At least this way some people are getting what they want.
I don't think Switch software will be affected. But, absolutely XSX and PS5 software will be.
Everything is affected by the chip shortage it's crazy. So glad I got my 3080 early on because it's even harder now.
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