- Production of the Nintendo Switch continues to suffer from a component shortage
- Nintendo’s president Shuntaro Furukawa warns this could continue into 2022
- This could lead to an even greater shortage of the console
Nintendo fans might be unpleasantly surprised next year, as Nintendo’s president warns of potential Switch shortages next year.
Nintendo President Warns of Shortages
The Nintendo Switch has been one of the most successful handheld consoles of all time, holding second place right after the Wii. Since its debut in 2017, Nintendo sold more than 92 million units worldwide. But this popularity seems to have led to a shortage.
Earlier this year, the console suffered from a substantial reduction in production, caused by a chip shortage. The lack of components is directly linked to the Covid-19 pandemic, which negatively impacted semiconductor production. According to reports from the BBC, this chip shortage could lead to a reduction in the production of many other consumer electronics. Even the Switch’s competitors, the Xbox Series X, and more infamously, the PlayStation 5, have suffered from the shortage.
Amidst this mismatch between supply and demand, Nintendo’s president Shuntaro Furukawa said in an interview with Kyoto Shimbun, where he warned that production of the console might not improve in the coming year. The demand for the console, especially in the USA, was so big around Black Friday, that Furukawa explained the company had to airlift the Switch to meet demand.
What Would This Mean for Nintendo Fans?
One way Nintendo tried to meet the demand is with the introduction of the OLED model in 2021. However, this is not enough to solve the need for semiconductors, and the OLED Switch could even have the opposite effect. Now that people can buy it, more and more will want it, rising demands once again – a classic case of induced demand.
Ultimately, this shortage could impact the consumer base the most. Whatever numbers Nintendo sells, they will still make a profit out of it, while many Nintendo fans might be left without a console. To make things worse, the shortage will attract scalpers who would buy out consoles and resell them at much higher prices. This, again, is an example of induced demand, as the demand increases, but there is less and less on the market, driving prices even higher.
According to information cited in Nikkei, Nintendo was expected to produce 30 million Nintendo Switch consoles between April 1, 2021, and March 31, 2022, but the company has reduced that expectation to 24 million. Experts say the shortage could continue into 2022, however, supply shortages can be hard to predict.
