The supply crisis is far from over. This problem not only affects Sony and Microsoft with their new consoles (PS5 and Xbox Series X), but also Nintendo with its different Switch models.
Interestingly, and despite the fact that it is a market highly dominated by them, Nintendo is having serious supply problems in Japan. This can be seen with the financial results of the second quarter of 2022 (from April to June).
As reported by the Nikkei medium, Nintendo Switch sales have fallen 33% in Japan due to supply problems. In the second quarter of the year, a total of 840,000 consoles were sold… a figure lower than that achieved in 2021.
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Nintendo is fighting against other companies (in the automobile and telephone sectors) to obtain the necessary parts for production. And things are not looking good…
“The shortage of chip materials is having an impact on production,” confirmed a Nintendo spokesman yesterday. They are even numbers below (by 10%) those harvested in 2020, when the supply problems began.
Nikkei has consulted various sources, and it seems that the biggest headache for Nintendo corresponds to the communication parts via Bluetooth. These are used in the Joy-Con and other accessories.
Beyond the lukewarm results of Q2, the problem lies in the future Christmas campaign. Nintendo usually increases the production of its consoles in the summer, in order to have enough consoles for those dates.
The objective of the Big N for the end of this fiscal year (March 2023) is sell 21 million Nintendo Switch consoles. Shuntaro Furukawa (president of Nintendo) himself recognizes that to achieve this, a high level is needed in the production chains.
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A level that, for now, Nintendo does not have. A possible solution is to modify the design of the Nintendo Switch, which will solve certain logistical problems… but at the same time it will mean a drop of 29% in their quarterly exercises.
Despite all this, the financial situation of the Nintendo Switch is good. Sony has a bigger problem in Japanand they see it almost impossible to reach the 57% increase by the end of this fiscal year.
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