Tuesday, December 6, 2022

Nintendo Feeling Effect Of Component Shortages


Last year’s supply chain slowdowns don’t seem to be improving, and Nintendo’s starting to feel the squeeze. The same component shortages that have made PlayStations hard to come by are having an effect on Nintendo, too. President of Nintendo, Shuntaro Furukawa, has confirmed that the shortage of components will make it harder to meet Switch demand.

During the latest financial results briefing, Furukawa explained that “if costs continue to rise at current levels through next fiscal year as well, then we would expect hardware profitability to decrease correspondingly.” He also commented that “unless the situation changes dramatically,” Nintendo doesn’t expect profits to increase over the next fiscal year.

Hardware supplies were also confirmed to be suffering. Furukawa states that while Nintendo was able to meet hardware demands from April to September, there was a change in the fall. Due to the component shortages, production had trouble meeting the demand for new Nintendo Switch consoles. This explains why new Switch OLED models have been difficult to source.

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