Nintendo discusses impact of coronavirus on its shipments, game development
The coronavirus has affected all kinds of industries and businesses. That includes Nintendo, as the company has struggled to maintain Switch supply and has had to face a work-at-home environment. A status update was provided in its financial results update today.
As for getting product into the marketplace, Nintendo says that “delays in production and shipping are gradually recovering.” There’s more of a concern regarding development since, if the effects of the coronavirus “are prolonged or worsen further, development schedules may be impacted due to the difference in development environments between working from home and in the office.” It’s noted that the situation in Japan “is anticipated to be even more difficult to predict” and there’s an overall warning that “we may not be able to proceed with the release of Nintendo products and the start of services as planned.”
Here’s the full update from Nintendo:
Impact on parts procurement, production, and shipments
It appears that delays in production and shipping are gradually recovering. However, we may be affected if there continue to be issues involving the procurement of necessary components. In addition, if the impact of COVID-19 is prolonged or worsens further, it may disrupt the product supply.
Impact on consumption activities
There are restrictions on sales channels in each country due to measures to prevent the spread of the virus including restrictions on movement outside the home and closure of retail stores, and this effect may be prolonged. Also, if physical distribution is suspended, we will not be able to sell hardware or packaged software through e-commerce (electronic sales transactions). In addition, there is a possibility that provision of those services offered via our network may be suspended in the event that we are no longer able to maintain the stability of our network systems.
Impact on research and development
If the effects of COVID-19 are prolonged or worsen further, development schedules may be impacted due to the difference in development environments between working from home and in the office. In particular, the impact to overseas subsidiaries and other affiliated companies involved in development is anticipated to be even more difficult to predict than within Japan. As a result of these factors, we may not be able to proceed with the release of Nintendo products and the start of services as planned.
This is also true for other software publishers, so it may not be possible to provide game content on Nintendo platforms as planned.
