Nintendo finally hit with supply chain issues, expects to sell 10% less Switch units this fiscal year

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Nintendo finally ran into supply chain issues and plans to sell 10% fewer Switch units this fiscal year

Nintendo's supply chain

Forecast is down 10% from fiscal 2021

There are Nintendo supply chain issues ahead, the company has warned, and this will directly impact the availability of Switch hardware.

Financial outlet Nikkei reports that Nintendo will ship an estimated 20 million Switch consoles for the current fiscal year (a 10% decrease from the previous year), which runs from April 1, 2021 to March 31, 2022. Nintendo aims to release this information on May 10 publicly, but before that, we get a look at how global supply chain is impacting the company. The situation should be complicated by the current global landscape (in the midst of a lockdown in Shanghai, China) in addition to all the events of recent years.

The reason is obvious, and the same problem affects every other electronics company (and car manufacturers, etc.): semiconductor shortages and general logistics/global supply chain issues, from shipping in manufacturing. Despite all this, Nintendo has managed to secure quite a bit of hardware to peddle, more than its competitors: Sony’s PS5 and Microsoft’s Xbox Series X/S.

Nintendo’s supply chain issues force their hand with software

Nikkei notes that due to hardware issues in Nintendo’s supply chain, Nintendo is pushing internally to increase software sales. The company said so recently and is setting up its plan for “evergreen” software titles to guide them through troubled times like this. We might see more sudden launches like Xenoblade Chronicles 3 or more delays in the future.

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