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Nintendo expects to sell about 20 million Switch in the current fiscal year, which is a 10% decrease in sales compared to fiscal year 2021. Despite strong demand, the lack of semiconductors and disruptions to logistics networks are powerfully hindering the production of the big N, forcing the company to re-evaluate units sold.
Nintendo Switch: bearish sales for 2022
The number of Switches sold in fiscal year 2021 is estimated at 23 million units, a decrease of 20% from the previous year. That fiscal year, Nintendo initially planned to produce around 30 million consoles, but the global shortage of semiconductors and other products forced the company to lower production forecasts as early as the fall.
The Switch has been on the market for six years now, but demand remains solid. The new model launched in October features screens with better color reproduction and continues to be in short supply in some stores. The Kyoto house would like to start increasing production, but the prolonged shortage of chips and disruptions to the global supply chain, now exacerbated by the Russian invasion of Ukraine, will have a long-term impact on production.
Meanwhile, China, where Switch is produced, is grappling with various Coronavirus outbreaks. Supply chains were disrupted by the Shanghai blockade, damaging the production and delivery of parts and materials. If the lockdown continues, Switch sales in fiscal 2022 could drop below 20 million units.