Nintendo is expecting a 10% decrease in Switch console sales in its current fiscal year, estimating that it will only sell 20 million units due to supply constraints. In comparison, Nintendo sold 28.83 million Switch consoles at its peak during its fiscal year 2020 and 23 million units in fiscal 2021, and had previously forecast that it would sell 23 million units during this fiscal year.
The current global semiconductor shortages and disruptions to logistics networks due to Russia’s invasion of Ukraine are to blame, according to Nikkei Asia’s sources. The global chip shortage has made it difficult to procure microcontrollers and other products for its three Switch models, while a coronavirus outbreak in China where the Switch is manufactured has further amplified the supply chain issues.
Nikkei’s sources claim that if the Shanghai lockdown continues, Nintendo could see Switch sales fall below the 20 million mark. To make up for the potential shortfall, Nintendo plans to sell more software as it has a number of big games arriving later this year. Splatoon 3 and Pokemon Scarlet and Violet are expected to be top-sellers for the company, and Mario Strikers: Battle League is scheduled for a summer release as well.
“The lineup will be at an all-time high level,” a Japanese securities analyst said to Nikkei. The company’s latest first-party game is Nintendo Switch Sports, a collection of athletic minigames that might make you break a sweat and something expensive. Nintendo also has subscription-based online services that are rumored to be expanding soon, with Game Boy Advance games rumored to join its library of virtual retro consoles.
As for the rest of the world, Intel expects the chip shortage to last until 2024 as the equipment needed to manufacture products is now also facing supply problems.