Nintendo’s top management commented the continuing global shortage of semiconductors, which prompted the company to revise its production target for Switch downwards. The president of Nintendo Shuntaro Furukawa stated, as part of Nintendo’s latest earnings briefing, that there hasn’t been a significant improvement in semiconductor supply, which is why Nintendo has reduced its production targets for the current year to 24 million units. As if that were not enough, Nintendo is working to identify alternatives to semiconductors for the production of new Nintendo Switches.
Nintendo is looking for an alternative to the semiconductor crisis
Despite the uncertainty in the market, Furukawa said that game sales, which traditionally have higher profit margins than hardware, were unaffected by the crisis. The executive said Nintendo will continue to promote its timeless new games to users as a means of maintaining the momentum of the business. Nintendo Switch.
The director e senior executive of Nintendo Ko Shiota he added that the company’s engineers are “re-examining” the hardware design of the Nintendo Switch, trying to find alternative components in an attempt to mitigate the effects of shortages in the supply chain.
Also Shigeru Miyamoto expressed his opinion, stating that the Switch’s impressive sales numbers so far, (remember, it has sold nearly 93 million units) help mitigate problems with supplying hardware components. “With so many consumers around the world having already purchased a Switch, the current situation hasn’t had a major effect on software development,” he said.
Finally, according to the company’s current plans, Nintendo Switch would currently only be in the middle of its life cycle, which is why the upper floors are not so worried about the shortage of semiconductors that plagues the market in this period.