Nintendo may miss switch production targets due to semiconductor shortage

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Elia Tabuenca García
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Source: Nintendo

FURUKAWA SAYS THE COMPANY “CANNOT PRODUCE ALL THE PRODUCTS WE WANT”



A Nintendo confirmed that the global semiconductor shortage is hampering its energy production efforts. Switch .

The company said on Thursday that it shipped 28,83 million Switch units in its last fiscal year and that it expects to ship 25,50 million in the current one, which ends March 31, 2022, which would see the system overtake the Wii. and become Nintendo's best-selling home console to date.

However, during a press conference following the publication of their latest earnings results, Nintendo's president, Shuntaro Furukawa, admitted that the company is not able to make as many consoles as it would like, and that there is "a growing sense of uncertainty" about its production capabilities.

“Due to the global shortage of semiconductor materials, we are not able to produce all the products we want,” he said (via Nikkei, paywall). “We are doing everything we can, but there is a growing sense of uncertainty about production plans.

“Our earnings forecast is based on the assumption that we will be able to guarantee parts and materials, and if the situation changes, we would like to respond by reviewing it.”



Source: Nintendo

Furukawa said in mid-April that Nintendo was able to secure enough semiconductors for "immediate" production of the Switch, but did not rule out the possibility of a hardware shortage this year in the face of continued strong demand.

Discussing why the sales forecast of the Switch this fiscal year is more than three million units below the figure achieved in the previous year, Furukawa said Nintendo considered the impact of the 2020 sales phenomenon Animal Crossing: New Horizons.

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“We need to factor in the impact of the explosive success of Animal Crossing: New Horizons, which boosted hardware sales in the previous fiscal year,” he said Thursday. “However, the forecast of 25,5 million units at the beginning of the fiscal year is a very high number compared to the past.”

Animal Crossing: New Horizons was released on March 20, 2020 and sold 11,77 million copies in its first 11 days of availability. It then sold 20,85 million units in Nintendo's last fiscal year, nearly double the number of copies of the company's next best-selling game during the 12-month period, Mario Kart 8 Deluxe . The racing game, which launched in April 2017, remains the best-selling Switch to date, but is now less than three million units ahead of New Horizons.

Nikkei ( paywall ) said on Tuesday that Nintendo has asked its manufacturing partners to increase production of the Switch to 30 million units this fiscal year in preparation for the launch of a new high-end model. Nintendo declined to comment on the report.

Source: Nintendo

Lifetime switch shipments now reach 84,59 million units, with over 81 million sold to consumers.

Nintendo today released a blue version of the Switch Lite console in Europe. It will arrive in North America on May 21, coinciding with the release of Miitopia.


Although Furukawa reiterated during Thursday's press conference that the Switch is "now in the middle" of its lifecycle, he also said that investment in the console's successor contributed to record annual R&D spending at the company.


During a call with investors following the publication of record financial results from the PlayStation this month, the CFO of Sony , Hiroki Totoki, said the company was considering various solutions to help it address hardware component shortages, including potentially altering hardware designs or outsourcing secondary vendors.

Sony will begin production on a hardware redesign of the PlayStation 5 in 2022 .

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