Nintendo Switch shortages should get better by the end of the year, after supply constraints hurt Nintendo’s hardware sales in the last quarter.
The latest earnings report from Nintendo confirms that the ongoing chip shortage has been having an impact on sales, but the company reassured investors that it should be easier for fans to get their hands on a Switch by the holidays.
“Due to delays in the procurement of components such as semiconductors this year, we have not been able to conduct production as planned,” confirmed Nintendo. “However, we expect procurement to gradually improve from late summer towards autumn, giving us a clearer outlook regarding production for the remaining calendar year.”
According to the report, Nintendo’s Q1 (April-June) Switch sales fell by 22.9% year-on-year, selling 3.43 million units. “Production was impacted by factors such as the global shortage of semiconductor components, resulting in a decrease in hardware shipments and subsequent decline in overall sales,” the company said.
Thankfully, Nintendo promises it’s getting on top of things to sort out supply issues by the holidays. “In preparation for the holiday season, we will leverage appropriate means of shipment, and work to deliver as many Nintendo Switch systems as possible to consumers in every region.”
As a result, Nintendo has made no changes to its financial forecast for this fiscal year.
It’s not just supply that’s causing the issue here – it’s also demand. Nintendo had a great year, with the Switch becoming the fourth-biggest console in US history, outselling the PS4. Throw in the fact that it’s also had a record-breaking year in software sales and it looks as though the Nintendo Switch is very much still in demand.
The good news for Nintendo this quarter is that sales of first-party games and software titles have increased year-on-year to the second-highest for a Q1 since the Switch was launched. There’s no slowing down on the games front, and with Splatoon 3, and Pokemon Scarlet and Pokemon Violet still to come, it’s looking like a big year for the Switch.
Nintendo isn’t the only company affected by these shortages, of course – Sony is also working to combat PS5 shortages before the holidays.
Ryan Leston is an entertainment journalist and film critic for IGN. You can follow him on Twitter.
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Author: Ryan Leston