Nintendo Expects 10% Fewer Switch Sales Due to Supply Chain
Nintendo recently announced that they are expecting 10% fewer Switch sales for the fiscal year due to production issues. The company cited “production problems” as the main reason for the expected decline in sales. This is unfortunate news for Nintendo, as they have been struggling to keep up with demand for the Switch since its release.
The Japanese gaming giant, Nintendo has reported a 30% decrease in sales from fiscal year 2020 when its Nintendo Switch console reached 28.83 million units sold worldwide at its peak point during that time period last decade – but it’s not all bad news!
The company said they expect things will get back on track by 2023 with an expecting total of around 40-45 millons products moved per year once again hitting store shelves globally thanks largely due increased demand for their popular New Super Mario Bros U title among others..
Nintendo’s Switch console continues to be a huge success, but the company is still struggling with shortages of key materials needed for production. In fiscal year 2021 they are estimating that 23 million units will sell-down compared too last years count at 30%. This means there was barely any increase in total number sold when factoring out how many were made due solely on account microcontroller issues which have since been resolved after some tweaking by engineers within our industry!
The Kyoto-based company has started to increase production, but the prolonged chip shortage and global supply chain disruptions aggravated by Russia’s invasion of Ukraine will make it difficult.
Nintendo – Shanghai lockdown, chip shortages complicate fiscal 2022
In China, where the Switch is produced and distribution throughout Asia occurs with shortages due to coronavirus outbreaks. Production has been disrupted by this lockdown which could cut sales of Nintendo’s newest console in fiscal 2022 below 20 million units if it lasts long term or even shorter period time frames.
With the current generation being in between cycles, Nintendo President Shuntaro Furukawa believes this to be an appropriate time for change, quoted saying ” “is still in the middle of the cycle.”
“The lineup will be at an all-time high level,” said a Japanese securities analyst.
Nintendo, has been working hard this year to release a new version of its popular Splatoon game in September 2022 and an entirely unique Pokemon title by the end of the year!