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Its not all Fun and Games as Nintendo SWITCH is Hit by the Chip Crisis

 

The Japanese gaming giant is struggling to meet demand for consoles due to a global shortage of semiconductor chips. Forecasts have been cut for the fiscal year ahead of the usually busy holiday season, with Nintendo unable to provide reassurances over production

The Japanese gaming giant is struggling to meet demand for consoles due to a global shortage of semiconductor chips. Forecasts have been cut for the fiscal year ahead of the usually busy holiday season, with Nintendo unable to provide reassurances over production, and the development of a new console being hampered by the same issues. Sales exploded during the Covid lockdowns, but Mario Bros. have more than just some leaky taps to fix to get sales back on track.

"The semiconductor situation has several effects on hardware development", Nintendo executive Ko Shiota, who heads the development team, said in an analyst briefing, as quoted by Reuters.

"We are looking for replacement components and tweaked designs to try and reduce the impact", he added.

The comments came a day after Nintendo president Shuntaro Furukawa said there was no sign of a reduction in the chip shortage, which is why Nintendo cut its full-year sales forecast for the Switch.

In September, Microsoft gaming boss Phil Spencer said that short supply of next generation consoles was due to many issues - not just a chip shortage - and would continue beyond Christmas.

"I think regretfully it's going to be with us for months and months, definitely through the end of this calendar year and into the next calendar year" he told The Wrap.


Analysts say the shortage will continue to have an impact across all kinds of consumer electronics

Apple CEO Tim Cook recently told investors that "larger than expected supply constraints" in the three months to September, had cost the company $6bn (£4.5bn) in lost sales.

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