Nintendo expects to see a huge reduction in Switch sales due to supply chain issues

Nintendo expects to see a huge reduction in Switch sales over the course of the current fiscal year. The company predicted a 10 percent reduction from last year as the manufacturer faces production issues, including an ongoing shortage of semiconductors.

According to Nikkei, the company currently plans to sell around 20 million consoles. While this is down 10% from 2021, the number is down 30% from 2020, when Switch sales peaked at nearly 29 million units.

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Nintendo had planned to produce 30 million Switch units in 2021, but supply chain issues have prevented the company from sourcing a variety of different components. Nintendo lowered its production forecast in the middle of the fiscal year. There were only 23 million consoles manufactured in 2021, which is a 20% decrease from the previous year.

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Although the Switch has been on the market for over six years, demand for the console remains high and sales remain strong. Nintendo president Shuntaro Furukawa referred to the Switch as being at the “midpoint” of its life cycle in 2021.

The slowdown can largely be attributed to worsening chip shortages, but several other factors must also be taken into account. The conflict between Ukraine and Russia has been causing all sorts of disruptions, and the pandemic restrictions recently reintroduced in Shanghai, China, have also played a role. Nintendo makes the Switch in China.

Nintendo apparently plans to make up for the drop in sales by focusing on games. The company announced that Splatoon 3 and a new game in the Pokémon franchise will be released in the current fiscal year.

Gamers have pointed out that Nintendo is clearly on firm financial ground. Some also discuss the possibility of a Switch Pro being announced in the near future. “I just don’t understand why people keep thinking that it would be in Nintendo’s best interest to release a successor this year or early next year,” said Resetera user known as Dssarod. “They can still make a lot of money from Switch hardware and software this year and next. They can easily wait for 2024 for new hardware. The scarcity issue may not be resolved by then, but it won’t be as bad as it is now.”

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