Nintendo Reduces Switch Production Target by 20 Percent Due to Chip Shortages

[Tsing]

Image: Nintendo



Nintendo has been forced to reduce the production target for its hot-selling Switch consoles by 20 percent due to chip shortages. According to Nikkei’s report, the company had originally intended to produce a record 30 million units in the fiscal year through March, but that number has now been revised to 24 million. The implication is that it’s only going to get harder to secure a Switch console.



From Nikkei:



[…] production bottlenecks quickly emerged around springtime for key components including microcomputers. The company concluded it would have to revise down production targets as it was not able to secure enough supplies. Nintendo’s suppliers have already been notified about the production cuts.A Nintendo spokesperson acknowledged that the production is being affected by component shortages. “We are assessing their impact on our...

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[Peter_Brosdahl]

Well that begins to explain the recent restructuring that's happening. Shoring up the walls before things get worse and obviously the higher-ups have seen the writing on the wall.

 

[Brian_B]

IDK

Well that begins to explain the recent restructuring that's happening. Shoring up the walls before things get worse and obviously the higher-ups have seen the writing on the wall.

I don't think that's it. I think the restructuring was just long overdue.

I mean, you think about it, even the downgraded forecast of ~only~ 24M Switches is still twice as many Wii U's that ever sold.

 

[Peter_Brosdahl]

IDK

I don't think that's it. I think the restructuring was just long overdue.

I mean, you think about it, even the downgraded forecast of ~only~ 24M Switches is still twice as many Wii U's that ever sold.

Too true. I've also got a feeling there's more going on behind the scenes with increase costs abroad as well. Most of the manufacturers have already stated there will be price hikes coming in 2022 and with Nintendo's focus on the lower price tiers that's got to be dangerous news in trying to keep certain price points. Sony and MS are probably concerned too but they've been a bit more successful with price increases. I'm sure Nintendo fans won't be too upset but the higher-ups have to be concerned since there are multiple cost issues at play now.