Bloomberg is reporting that Nintendo has increased Switch production by partnering with a manufacturing site based in Malaysia owned by Japanese tech giant Sharp.
According to sources close to the matter, Nintendo has taken on this additional production stream to satisfy demand and future-proof against any potential issues caused by U.S.-China trade negotiations, which had become increasingly fraught during the presidency of Donald Trump. Nintendo's current manufacturing sites are based in China and Vietnam.
Nintendo’s already produces Switch consoles in the former region with assembly partner Foxconn, whose parent company owns a stake in Sharp; this fact is what helped connect the two companies. Nintendo had appealed to Foxconn for alternative production sites during the Trump presidency, and Foxconn noted that Sharp had extra capacity in Malaysia.
Sharp, as long-standing Nintendo fans will know, has worked with the Kyoto veteran in the past. It was a key player in the production of the Famicom (it would even create its own variant, the Twin Famicom) and would later assist in the production of the 3DS.
While the deal with Sharp was ostensibly to avoid any fallout from the breakdown of trade negotiations between the U.S. and China, it would seem that the extra production is going to prove fortuitous; the assembly lines will be operating at full capacity at the end of the year, which bucks the traditional trend of a lull in December. However, demand for Switch remains high on a global level, and because the first batch of "additional" stock will be hitting the market soon, Nintendo could end up selling even more than the 10.8 million consoles it shifted during the same period last year.
Bloomberg reports that David Gibson, chief investment adviser at Astris Advisory Japan, has forecasted that Nintendo will sell 26.4 million Switch consoles for the period ending March 31st – up on its (already revised) projection of 24 million units.
[source bloomberg.com]
Comments 34
Well that’s a lot of consoles. Don’t know that it will really sell that much though.
Sharp Aquos White 32' is my TV for playing video games. 😀
@bobzbulder This entire year, Nintendo's been selling as much as it ships, so it's quite possible. They haven't yet managed to hit market saturation.
It'll at least hit the 10.8 million they sold during the holidays last year without a question. Everything in video game sales is up from last year.
Have they been selling out constantly? I was under the impression that a new Switch is readily available if you want to buy one. Sure wish Sony had news like this...
Will they make the console itself sharper? I always thought it could use some painful edges.
This is great news for Nintendo 👍👍👍
Maybe they'll be making the Switch Pro.
@SwitchVogel they are restocking constantly enough that people can find one, but the systems are still leaving shelves like hotcakes. Basically, the stock is big enough the scalpers aren't dominating the supply, but sales aren't slowing down, particularly now with bundles in place.
Have they filled the swimming pool up with yen yet?
Sharp is having a hell of a year. First they partner with NEC and now Nintendo's. Grabbing up all of those big N's
@Eel whomp whomp...
@Snakesglowcaps thwomp thwomp
@Eel Dum Dum PSST
Last week looks may have been the single biggest week of Switch shipments to the US ever in preparation for the upcoming Black Friday weekend.
Supply is definitely beginning to ramp up by a lot.
@westman98 Nintendo capitalising on the shortages on the XBOX Series and PS5 fronts.
@SwitchVogel I haven't been able to find regular switch for 2 months now. I've checked Target and Best buy on a regular basis. They have the Switch Lite, but I was looking for a full size. So I'm guessing that they are still having problems filling the need.
SWITCH PRO11!!!1
@sanderev
Switch has effectively been doing Wii/NDS numbers since March whenever it is well stocked. It would be selling massive numbers during the holidays with or without the PS5/XSX|S shortages.
Sharp move by Nintendo.
I'll get me coat...
If enough are shipped the switch could comfortably sell 30m+ this FY.
Good cause I am in the market for a new one to replace my launch Switch that seems to be having some battery issue and not to mention joy-con drift.
@Eel SwitchBlade?
@AndyC_MK84 Like making love to a beautiful woman!
@BulkSlash Nah, I think that would still be PTD
Sharp used to be bigger than it seems to be today, or it's business model has changed a lot. I remember a lot more Sharp electronics when I was kid compared to the present day. But if the reason for that is that they manufacture products for other companies under those companies' names, that would explain it.
@Heavyarms55 Sharp makes a lot of chips and displays. They made the stereoscopic displays for 3DS, and I believe they make the displays for the newer SKUs of Switch & Switch Lite. But their business model definitely changed. They're still big in the microwave oven space, though. The Carousel is ubiquitous.
@AndyC_MK84 The Fast Show should be turned into a visual novel game!
@SwitchVogel I obviously can't speak for anywhere else, but in Singapore at least it's relatively difficult to find Switches still. During lockdown, they were getting scalped for +30% from retail, and the animal crossing version is a crazy hot commodity: retailers were bundling with their unsold garbage stock and selling out.
Sharp was rumored to be the supplier of the Switch Pro's screen, so hopefully this means that the Switch Pro is coming next year.
Switch Pro is way off in the distance, you don't build this many sales then jump ship, 2022 I reckon.
This is not really a surprise since Foxconn essentially owns Sharp now.
I love it when people join just to troll someone.
@Investor9872 Yes. Interesting article about IGZO screen tech here -> https://www.displayninja.com/igzo-vs-ips/
IGZO vs IPS – What’s The Difference?
80%-90% more power efficient due to the higher electron mobility. Additionally, this provides a quicker response time, better color rendition, and higher pixel density.
@SwitchVogel the switch is still sold out everywhere around me, and scalpers are selling the consoles for upwards of $450 on amazon
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