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| Nintendo reduces Switch due to loss of chips |
Nintendo can only produce about 24 million keys in the fiscal year ending in March, 20% less than the original plan.
Due to the high demand for the Switch including its latest version which was released on October 8th, there is a shortage of semiconductors and other electronic parts and their production has stopped.
Nintendo's problems remind people that the profound effects of the global supply crisis have hit a variety of industries, from automobiles to electronics to machinery.
The Kyoto-based company originally planned to produce 30 million keys as the coronavirus pandemic increased demand for games and forced people to spend more time at home.
However, around the spring, major components, including microcomputers, quickly encountered production bottlenecks.
The company concluded that it needed to adjust its production targets because it was unable to ensure adequate supplies. Nintendo suppliers have received notifications of production cuts.
A Nintendo spokesperson admitted that the lack of components affected production. "We are evaluating the impacts on our production," the spokesperson said.
Company president Furukawa said Nintendo can't produce as many game consoles as it wants. There are still doubts about production.
Furukawa added that demand for the Switch remains strong. Retailers should use the lottery system to sell the latest version with OLED screens quantitatively.
Nintendo plans to produce 24 million units by March 2022
A lack of supply drove Switch sales down 37% to 214,000 units in September. Compared to the previous year, this is the third consecutive month with an annual decline.
Nintendo had hoped to sell 25.5 million units in fiscal 2021, but the goal was lower than 28.83 million units in the previous fiscal year.
This number will now continue to decline. Since its launch in 2017, the company has sold more than 89 million keys.
Since the platform was launched in 2006, Switch sales are expected to exceed 102 million Wii units sold by the company.