Nintendo further talks Switch production with chip shortages, software to be a focus
Posted on November 9, 2021 by Brian(@NE_Brian) in News, Switch
During a Q&A session for its financial results last week, Nintendo further discussed the impact of current chip shortages on Switch hardware production and how it’s dealing with the situation. President Shuntaro Furukawa, Ko Shiota (director, senior executive officer), and Shigeru Miyamoto all chimed in.
Furukawa stated that “the future if uncertain” when it comes to the necessary semiconductor components that are in short supply at present, and will be “maximizing our software sales as much as possible” to continue Switch momentum. Shiota noted that hardware developers “are also continuing to take measures such as evaluating alternative components and reviewing our designs.” As for Miyamoto, he explained that actual software development is still proceeding as planned, not to mention that its mobile and video content efforts are unaffected.
Furukawa, Shiota, and Miyamoto said the following when asked about Switch production with chip shortages:
Furukawa: Since the start of this fiscal year, we have continually said that semiconductor components are in short supply and the future is uncertain. There has not been a major improvement in the situation so far, which is why we do not think we can produce hardware in the quantities we initially expected and have revised our unit sales forecast for the second half. However, even though hardware supplies might be limited, there has not been any impact on software sales. We will continue to share the appeal of new and evergreen titles with consumers through the end of this year and into next year. By maximizing our software sales as much as possible, we aim to maintain the momentum of the Nintendo Switch business. We are reviewing our unit sales forecast for the next fiscal year and beyond, so we would like to revisit that topic once we reach the point where we can make specific announcements.
Shiota: To mitigate the effects of the tight supply situation for semiconductor components, those working on Nintendo Switch hardware development are also continuing to take measures such as evaluating alternative components and reviewing our designs.
Miyamoto: With so many consumers worldwide having already bought a Nintendo Switch, the situation has not had any major effects on software development. In addition, hardware is not an issue for our mobile business or our visual content business.
Last week, we heard that Nintendo will be producing 20 percent fewer Switch units given current chip shortages – read about that here.
