Global Chip Shortage Strikes Nintendo Switch Xmas Sales
A lot of kids are going to have sad faces on Christmas day, with Nintendo announcing a six per cent drop in its full-year sales forecast for their popular gaming console Switch, admitting they’re struggling to meet year-end demand because the global semiconductor shortage has disrupted production.
“We can’t produce enough to meet the demand we are expecting during the upcoming holiday season,” Nintendo President Shuntaro Furukawa says, adding that the company has revised their Switch sales target to 24 million units.
“Currently there is no sign of improvement and the situation continues to be severe so I can’t say how long it will continue.”
Nintendo’s second-quarter profit dropped 32 per cent in a year to US$880 million. Their shares have lost 25 per cent this year.
They launched the upgraded OLED model Switch at the start of October but it is still in short supply in many markets.