Nintendo Could Experience Hardware Shortages Due to High Demand

In a recent interview with Nikkei, Shuntaro Furukawa affirmed that Nintendo has enough semiconductors for “immediate” production. However, the company forecast shortages in late 2021 due to high demand.

“We have been able to secure the necessary materials for the immediate production of semiconductors for switches,” Nintendo’s president said. “However, in Japan and other countries, demand has been very strong since the beginning of the year, and there is a possibility of shortages at some retailers in the future.

Nintendo of Japan President Shuntaro Furukawa has also talked about how COVID-19 could affect the Switch production, forecasting that “prolonged problems will affect the product delivery plans”.

Last year, Nintendo President, Shuntaro Furukawa talked to investors at their financial report for the end of the fiscal year, explaining that the situation in the manufacturing plants was returning to normal, he forecasted that 2021  would see losses in software and hardware sales.

“We are not in a position to be able to produce the full quantity of units we actually want to produce,” … “That said, there are signs of gradual improvement, and so we anticipate that the impact of COVID-19 on production will subside to some degree by summer, and that the volume we will be able to produce throughout the year will align with our sales forecast units for this fiscal year.”

“But even so, we are gradually gaining experience in assessing what can and cannot be done remotely, and in determining how much progress we can make on the work we are able to do from home” …”Please be aware that the impact on game development in terms of both hardware and software may potentially increase as the amount of time spent working remotely increases.”

Source: Nikkei via VGC

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