Game company Nintendo has confirmed that the Nintendo Switch console production might get slowed down due to the nature of the supply and demand situation of materials.
Company President Shuntaro Furkawa recently shared in a Q & A with investors that the demand of the hardware has continued to exceed their expectations even after the beginning of the calendar year. Due to that, the production has not caught up with the high demand. The reason for the slowdown is the tight supply and demand situation for semiconductor materials in a global scale.
The materials are needed for most computing devices and the shortages started last year. The chips that power the consoles use semiconductor materials, and without an abundance of it, it will be harder to produce complete consoles.
“Although we are currently striving to produce as many units as possible, the fact is that our production plans are more uncertain than they were at the beginning of previous fiscal years. Our full-year sales plan is based on the premise that we can secure the materials necessary for production, but if we are able to produce more units, we will work hard to meet the strong demand, and to be able to ship and sell those units.”
Other game companies are suffering the same kind of problem as well like with Sony Interactive Entertainment not producing enough PlayStation 5 consoles. The same problem has arisen: the lack of semiconductor materials.
With the global pandemic situation, it will be harder to procure more materials to produce those chips. It will be a tough year for gamers who want to purchase new consoles like the Nintendo Switch, PS5, and Xbox Series consoles.