Nintendo expects to see a big reduction in Switch sales over the course of the current fiscal year. The company has forecast a 10 percent decline from last year as the manufacturer grapples with production problems, including an ongoing shortage of semiconductors.
According to Nikkei, the company currently plans to sell around 20 million consoles. While this represents a 10 percent drop from 2021, the figure is 30 percent lower than it was in 2020, when Switch sales peaked at nearly 29 million units.
Nintendo had planned to produce 30 million Switch units in 2021, but supply chain issues prevented the company from sourcing a variety of different components. Nintendo cut its production forecast about halfway through the fiscal year. Only 23 million consoles were made in 2021, which is a 20 percent decrease from the previous year.
While the Switch has been on the market for more than six years, demand for the console remains high and sales remain strong. Nintendo president Shuntaro Furukawa has referred to the Switch as being at the “midpoint” of its life cycle in 2021.
The slowdown can largely be attributed to worsening chip shortages, but other factors must also be taken into account. The conflict between Ukraine and Russia has been causing all kinds of disruption and the recently reintroduced pandemic restrictions in Shanghai, China have also played a role. Nintendo makes the Switch in China.
Apparently, Nintendo plans to make up for the drop in sales by focusing on games. The company has announced that Splatoon 3 and a new game in the Pokémon franchise will launch in the current fiscal year.
Gamers have been pointing out that Nintendo is clearly on solid financial ground. Some have also been discussing the possibility of a Switch Pro being announced in the near future. “I just don’t understand why people keep thinking that it would be in Nintendo’s best interest to release a successor this year or early next year,” said Resetera user known as Dsosarod. “They can still make a lot of money on Switch hardware and software this year and next. They can easily wait until 2024 for new hardware. The shortage problem may not be solved by then, but it won’t be as bad as it is now.”
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