Switch Production is Still Down Due to Chip Shortages
The ongoing chip shortage, which has impacted everything from consumer electronics to cars and household appliances, is putting a continued squeeze on Nintendo’s production of Switch consoles. According to a report from Nikkei Asia, Nintendo won’t be able to meet the quota it set for Switch manufacturing, with 20% fewer consoles being produced in the fiscal year ending in March that was forecast.
That doesn’t mean Nintendo’s entire supply of Switch consoles will be depleted, though. The gaming giant will still be able to produce a massive 24 million consoles by March, however, it originally planned to manufacture 30 million. The company initially planned to capitalize on people staying at home due to the pandemic by flooding the market with Switch consoles, but now has to scale back its plans due to a shortage of components.
Microchips have been in short supply for over a year, an issue that started with increased demand for the components and was exacerbated by the COVID-19 pandemic, which forced workers to stay home and further impacted microchip demans. Anyone who has been trying to purchase a new household appliance, car, gaming console, or PC graphics card has likely been affected by this shortage in one way or another.
Despite the chip shortage and a sizeable decrease in production through March, the Switch has remained a success for Nintendo. Prior to September, the Switch was the best-selling console in the U.S. for 33 months straight, a record that was ended by the PlayStation 5, according to the NPD Group’s Mat Piscatella.
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