Nikkei contends that Switch production is down 20% this fiscal year due to semiconductor shortage (Update)

semiconductor shortage

Expect this to last at least through 2022

[Update: In a brand new Q&A session, Nintendo president Shuntaro Furukawa confirms the Switch semiconductor shortage himself.

He comments: “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.”

Nintendo legend Shigeru Miyamoto notes that this also allows them to go harder on mobile and “visual content” (like the upcoming Mario movie).]

Earlier this year, Nintendo president Shuntaro Furukawa warned investors and fans alike that Nintendo Switch production would likely take a hit. Like every other production pipeline in the world things are tough right now, especially when it comes to semiconductor shortages; which is impacting nearly every industry, even car manufacturers.

Here’s what Furukawa said several months ago:

“As for production, we achieved steady hardware production through the end of last calendar year, and as a result, in the previous fiscal year we set a record for our highest fourth-quarter sales volume. Meanwhile, demand for hardware continues to exceed our expectations even after the beginning of this calendar year, and production has currently not caught up to this high demand due to the tight supply and demand situation for semiconductor materials worldwide.”

As a result, Nintendo directly attempted to negotiate a deal with their partners to secure more semiconductors to reach the 30 million unit mark. It appears that hasn’t happened, as the semiconductor shortage is impacting everyone, and some pundits and professionals alike contend that the drought could continue well into 2022, and beyond.

That drought includes the Switch. Nikkei reports this week that Nintendo is going to be producing “20% less” Switch units for the fiscal year ending in March 2022, which brings their count to 24 million.

The rise of scalpers and scalping stock buyout tools has only exasperated the issue, with some people joking that eBay is the official store of Nintendo products. We’re even at the point where the Xbox Fridge is selling out five seconds.

My advice, if you want any of this stuff for yourself or as a gift? If you don’t have a network of friends who can text you when things go on sale: start small. Make a pact to text each other if something goes on sale, or create alerts for a specific phrase on a dummy Twitter account if you don’t have one/don’t care for the platform. There are also various “buyers” groups on social networks that can help, and they sometimes get inside info before the word gets out.

Good luck!

Chris Carter
EIC, Reviews Director - Chris has been enjoying Destructoid avidly since 2008. He finally decided to take the next step in January of 2009 blogging on the site. Now, he's staff!