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Nintendo’s production plans for the Switch console are uncertain as the semiconductor crisis continues

Nintendo Switch

The platform owner said Nintendo plans to sell another 25.5 million Switch devices before the current fiscal year (ending March 31, 2022), and this plan may be compromised by semiconductor shortages.

In a question and answer session after Nintendo’s website announced its financial results for fiscal 2021, President Furukawa clarified that the forecast announced earlier will depend on the availability of materials, and Switch’s production plan for the next. This year is more uncertain than theirs. In the previous fiscal year.

He said: “At the end of the last calendar year, we achieved stable hardware production. Therefore, in the last fiscal year, we set a record for highest sales in the fourth quarter.” “At the same time, even after the start of the calendar year, Hardware demand still exceeds our expectations. Due to the tight supply and demand situation for global semiconductor materials, current production has not met this high demand.

“Although we are currently working hard to produce as many products as possible, the fact is that our production plan is more uncertain than at the beginning of last fiscal year. Our annual sales plan is based on the fact that we can ensure the production of materials required, but if we are able to produce more products, we will strive to meet strong demand and be able to transport and sell these products. “

Furukawa also spoke about Nintendo’s rising R&D costs, which are related to higher development and research costs for next-gen Nintendo hardware. 

When Nintendo Switch enters the middle of its life cycle, given that the development cost of the new title is higher than that of the previous platform, we hope that as we strive to maintain a great offering, the spending on R&D D continues to increase. 

In addition, the development of next-generation hardware must start a few years before its launch, so its research and development costs are gradually increasing. Our goal is to grow by continuing our integrated hardware and software entertainment business, which means conducting various research and development in various fields, including hardware and software. 

“Nintendo reported a record annual profit for the fiscal year ending March 31. By 2021, Switch sales reached 28.8 million units, bringing lifetime sales of the game console to 84, 59 million.

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Amanda Bell

Amanda started Market Assessment because of her keen interest in space research, technology, and gadgets. She is an avid reader, technology enthusiast, and like to explore new places. Her passion for knowledge keeps him running all the time. A pure vegetarian, who believes in reincarnation & law of karma, and follows the philosophy of “Live and let others Live” because all living beings have the equal rights to the resources of this planet. She loves to write about technology and social issues on his blogs.

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