Nintendo battling tech companies for Switch parts due to industry shortages - Nintendo Everything

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Nintendo battling tech companies for Switch parts due to industry shortages

Posted on May 30, 2017 by (@NE_Brian) in News, Switch

We recently heard that Nintendo is looking to increase production of Switch due to high demand. The Wall Street Journal has backed up the earlier report, and now claims that the big N is trying to ship out close to 20 million units by March 2018.

There is a significant problem getting in Nintendo’s way though. The Wall Street Journal writes that the industry is facing “an industrywide capacity shortage for components used in smartphones, computer servers and other digital devices.” This includes “NAND flash-memory chips that store data, liquid-crystal displays and [Linear Resonant Actuators] the tiny motors” used for Switch’s HD Rumble feature.

The Wall Street Journal further adds the following:

Analysts say rivals for the sought-after parts can often offer better terms than Nintendo. Makers of data-center servers tend to use newer and higher-margin components, while smartphone makers issue larger orders than Nintendo.

For its part, Nintendo is looking to avoid spending much more on parts. Doing so could drive up the cost of Switch, and Nintendo doesn’t want to sell the system at a loss.

One final note: Nintendo could end up shipping out Switch with air cargo once again later in the year. That is not confirmed at this time, however.

Source

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  • Exy

    FIGHT FIGHT FIGHT FIGHT

  • Man

    basically another legal battle. Man, Ninty usually have to deal with this kind of situation.

  • Tlink7

    I just imagine executives from companies like Samsung and Nintendo battling it out DBZ style

    • Fredy Rodriguez Ortega

      this isn’t how normally it is?

      • Tlink7

        Btw, you’re elfredy91 on discord, right? šŸ˜€

        • Fredy Rodriguez Ortega

          haha yes I am, but shshshs it is a secret to everybody

  • Liam Freeman

    They should settle it… IN SMASH!

    • Fredy Rodriguez Ortega

      the next month it will be let settle it…in ARMS

  • Fore

    This well and truly sucks, let’s hope they get through this and manage to resolve the shortages.

  • Kenshin0011

    Nintendo, I know y’all are cheap bastards (and that’s partly why you’re still well and around today), but you need to shell out some extra money to ensure you have millions of Switch’s ready for the Holiday season.

    • I don’t think it has anything to do with being “cheap”. With any business, you always want to spend the least amount of money possible so it’s easier to make a profit.

      Nintendo does not want to take a loss on every Switch sold, so it’s trying to keep manufacturing costs as low as possible. Microsoft has no problem taking a loss on Xbox units because it has so much more revenue coming in from other areas. Nintendo’s sources are very limited by comparison.

  • ā‰ˆ KobobKC ā‰ˆ į”¦ź™¬į”Ø

    The world is ending.

  • GoldenTriforce

    For some reason I find this hillside

  • R.Z.

    It seems the lazy underpaid/child labor from third world countries can’t manage to keep up with our expectations again …

    • JasonBall

      Lol you mean China

      • R.Z.

        Also African mines, let’s not forget the raw materials !

  • ben

    I wonder if sony will buy one of the factories that makes the switch parts like they did for the wii u..

  • MoYeung

    Demand and supply?