Nintendo is reportedly experiencing supply chain disruptions in Japan again. According to a new report from Nikkei, the company is currently experiencing a "frustrating" sales slowdown - shifting 33% fewer units in April - June compared to a year ago. Famitsu data reveals Switch unit sales totaled around 840,000 in the latest quarter.
A Nintendo spokesperson told Nikkei how "the shortage of chip materials" was having an impact on Nintendo's production line. This period (April - June) was about a 10% decline compared to 2020.
Nintendo is also supposedly having issues procuring parts for Bluetooth wireless communications components (used in controllers and the main units) as well as analog chips for controlling currents. There are apparently negotiations underway to secure the required parts, but Nintendo's spokesperson said: "the outlook is uncertain".
The Japanese company is currently competing for parts against other game companies (like Sony, which is also experiencing supply chain disruptions). Then there are tech companies like - smartphone manufacturers and even car companies who require these vital components.
Nintendo was aiming to sell 21 million Switch units before the year ending March 2023, but that's not factoring in the latest round of shortages - with the company now expected to revise its net profit forecast of 340 billion yen ($2.5 billion) for the current fiscal year.
According to Nintendo's official data, more than 107 million Switch have been sold as of March 31, 2022. The company's software line up for the remainder of 2022 currently includes titles like Xenoblade Chronicles 3, Splatoon 3 and Bayonetta 3.
This news follows on from an update last week - suggesting Nintendo was stockpiling materials and doubling spending on supplies:
[source asia.nikkei.com, via gonintendo.com]
Comments 42
Perhaps that’s why they stocked up on so many supplies recently?
lot of buzz over a possible new hardware by nintendo on you tube..
@johnedwin If you're referring to the Switch OLED announcement video getting privated on the US and Japan channels, it's almost certainly because the license to the music in the video was expiring, so instead of renewing it, they just eliminated the video from public eye.
Except on the UK channel for some reason, must not have gotten the memo.
So this isn't a sign of the Nintendo Switch Pro S Max Plus releasing anytime soon.
I’m shocked I tell you. I thought it was just Sony that had supply issues based on what I read every week here to explain why Japanese PlayStation sales are so low
Yes Switch Pro plan for next main Nintendo Direct likely. This may be why Nintendo gave us a mini direct in June instead of a main Nintendo Direct. The new Donkey Kong game and Breath of the Wild 2 could be launch titles for that new more powerful upgraded Switch.
Surely if Nintendo have been stockpiling materials they wouldn’t have issues?
That’s pretty amazing actually considering how much product they are able to move.
Its not surprising. Everything is in short supply.
Considering they still seem to be outselling Sony and Microsoft, imagine if there wasn't a shortage.
Still selling more units than Sony and Microsoft even with disruptions. I still believe the PS5 doesn’t exist seeing as I’ve yet to lay eyes on a single one anywhere.
I been assuming that the reason they are stockpiling so much stuff is it is easier to procure with a larger order and cheaper considering the current supply making everything cost more.
Still hoping for a new hardware announcement but I am starting to think it might be unlikely.
Missing bluetooth parts could result in manufacturing more Switch Lites. We will see.
I would think that demand is also lower now than last year. So I really don't think this is all because of parts shortages. But what do I know. We can only guess. 😊
@GameOtaku I've seen them being sold in a Gamestop, and also saw one on display at a store. You don't fully realize how stupidly big the thing is until you see it in person.
Imagine being number one in hardware and STILL underperforming! The Switch is a monster
And yet you guys say "omg we need a switch 2!!!".
Yeah good luck with that.
@SteamEngenius Yes, came to say the same thing! All the evidence is pointing towards 2024 the earliest.
@Max_the_German Given the Switch Lite still uses Bluetooth for controllers and local play etc....doubt it.
@Haruki_NLI At least Lites need only 1 instead of 3 bluetooth chips.
@Serpenterror,
Yes Nintendo are struggling to keep up demand with the current Switch models, as parts are difficult tp find for every manufacturer, so the solution to this problem announce a brand new Switch..... sounds totally reasonable to me.
@nimnio no, but Nintendo Virtual Switch 64 Satellaview & Watch isn't something to completely rule out yet.
@SteamEngenius,
Main problem on sites like this, because the core minorities want a Switch 2, and feel Nintendo is doomed without one, they automatically assume everyone else feels the same way, when in reality most current and potential Switch owners could not care less.
If they cannot even source the parts to sell the demand of the Switch we have, how are they going to support a Switch Pro?
I cannot see Nintendo doing a Switch Pro with these conditions, it will cost them an arm and leg.
No more iterations for the current gen Switch I don't think going forwards with all these supply issues Nintendo is having to contend with.
All this shortage will do is prolong the Switch's lifespan and delay the Switch 2 release even more.
I currently think it's roughly early 2024, seven years after the Switch Release but could be put back further.
Just release Gameboy/Gameboy Color and Gameboy Advance Games for Nintendo Switch Online Expansion Pack and I guarantee you that the Sales will pick up again!
@StarPoint Or they are actually slowing down production... and its all secret.
@NintendoEternity
The supply shortage is a very real thing, like it or not. The Switch has managed to pull through the pandemic for two years, but we're still facing the chip shortage caused by it, and Nintendo was the last to crack amongst the three.
The Switch will continue to sell regardless of NSO. It's just a matter of how much they can manufacture.
@Serpenterror We already had a dedicated direct for the new Pokemon games, Xenoblade Chronicles 3 and Splatoon 3.
That's pretty much all major releases left for this year.
So maybe, just maybe there won't be any new major Nintendo Direct anytime soon. Since they already covered the remaining confirmed releases for this summer/autumn in dedicated Directs.
With current supply chain issues still going rampant, affecting all industries (IT, Car and Games). Nintendo would be foolish to announce new hardware now. So its just an ongoing pipe-dream by desperate people.
Both Microsoft and Sony are still struggling to produce enough XBox Series X and PS5 consoles. They are still sold out/on back-order everywhere. No store has stock (except a handful scalpers trying to sell them for insane prices).
Nintendo: We're running out of chips!
Sony: Welcome to our world...
@johnvboy We disagree 90% of the time on all things Nintendo, but.....yeah, I'm with you on this one. Why people thing Switch 2 is coming soon when there's no chips to be had and Nintendo can't even make what they have is puzzling to say the least.
Though if any mfr WERE to try to launch a new product while it's impossible to make them, it would be Nintendo...
Can you imagine preorders given Nintendo's usual inability to make a reasonable launch quantity combined with the chip shortage? It's been 2 years and people still can't get PS5/XSX that want one. It was 2.5 years before people could reasonably get a Wii with no chip shortage. If Switch 2 launched in 2023, most people couldn't get one until 2027....and it's not even an exaggeration!
I can safely say supply is an issue for just about everyone right now. The company I work for has had to work extra hard for the electronic parts we need for our products and we've had to increase prices, not to get more profit, just to offset the additional cost
@NEStalgia,
Plus the current Switch is still in great demand, Nintendo would be crazy to reveal another one at the moment.
@johnvboy Yeah, I mean there's a certain pragmatism to believing they'd try to avoid a Wii situation where they waited too long to bring out a successor, and sales were already sharply downward by then. There's a fine line to cannibalizing existing sales, And lingering too long until your sales slump. But they're already not filling current demand....why replace that in an environment where it's costly and problematic to do so? It wouldn't make sense.
@NEStalgia,
So true, but some will never see beyond their own personal wishes, Nintendo have got a winner with the Switch, so why would they kill the proverbial Golden Goose.
Do we disagree with each other all that much, not sure I agree with you on this one.
@johnvboy Haha, we disagree on Nintendo matters often...but...maybe not 90% of the time
@NEStalgia,
You are correct, it's only 95% of the time , although in all honesty I can only remember us debating Animal Crossing new horizons. but perhaps it was other stuff as well.
@johnvboy mostly animal crossing, true...
Japanese gamers:
ああ、良くない.
@ModdedInkling I agree, but adding to NSO will just help with Sells. I just find it Incredible how Amazing Nintendo is doing with Switch Sells though the Shortage.
@TheHighGround
Hello there
@ModdedInkling
General Kenobi!
You are a bold one.
lmao i'm sorry but i can't...
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