Nintendo Expects To See A Huge Reduction In Switch Sales Due To Supply Chain Issues

Nintendo is expecting to see a huge reduction in Switch sales over the course of the current fiscal year. The company has predicted a 10 percent decrease with respect to last year as the manufacturer faces production problems including an ongoing semiconductor shortage.

According to Nikkei, the company is currently planning on selling around 20 million consoles. While this represents a 10 percent drop from 2021, the figure is a full 30 percent lower than 2020 when sales of the Switch peaked at nearly 29 million units.

Nintendo had planned to produce 30 million units of the Switch in 2021, but supply chain issues prevented the company from procuring a variety of different components. Nintendo lowered its production forecast about halfway into the fiscal year. There were only 23 million consoles manufactured in 2021 which represents a 20 percent decrease from the year before.

While the Switch has been on the market for over six years, demand for the console remains high and sales continue to be strong. President at Nintendo Shuntaro Furukawa referred to the Switch as being at the “midpoint” of its lifecycle back in 2021.

The slowdown can largely be traced back to the worsening chip shortage, but several other factors should also be taken into consideration. The conflict between Ukraine and Russia has been causing all kinds of disruptions and the recently reintroduced pandemic restrictions in Shanghai, China have also played a part in things. Nintendo manufactures the Switch in China.

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

Players have been pointing out that Nintendo is clearly on firm financial ground. Some have also been discussing the possibility that a Switch Pro could be 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,” the user on Resetera known as Dsosarod said. “They can still make a lot of money with the Switch hardware and software this year and the next. They can easily wait for 2024 for new hardware. The shortage issue may not be done by then, but it won't be as bad as it is now.”

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