As the chip shortage continues to pummel most of the tech industry, Nintendo is not immune to the effects. The video game publishing and developing giant had major plans to capitalize on the state of the many taking comfort in games during the pandemic, but scarce resources have curtailed its plans as it has with many companies. Recent reports suggested Nintendo may be cutting its production forecasts for the Nintendo Switch console, but its recent quarterly report confirms it: Nintendo will now aim to produce 24 million Switch units by the end of its fiscal year.
This information appeared in Nintendo’s most recent Q2 2022 earnings results reporting on November 4, 2021. Where the company was previously reported to be reducing its production expectation on the year due to chip shortage, the recent earnings report officially put it on record. Nintendo is reducing its most recent expectation of 25.5 million units down to 24 million. The 25.5 million itself was also a curtailed number from Nintendo’s original plans, which were to take advantage of stay-at-home orders worldwide to hit an even more lofty production target.
As it stands, Nintendo will chase the current 24 million Switch production target through the end of its 2022 fiscal year. However, even this may not entirely stand up to the ongoing semiconductor famine. In previous reporting, Nintendo President Shuntaro Furukawa suggested the company is still investigating the full impact of the ongoing chip shortage on its overall resources. Despite raising its profit guidance for FY 2022, Nintendo’s quarterly reporting also addresses some level of uncertainty and “future impact on production and shipping” as the company takes full consideration of the global semiconductor situation in relation to its resources.
Even so, as it stands, Nintendo seems committed to the 24 million Switch target for FY 2022. It will remain to see if this changes further in later quarters, which could very well be the case with some companies predicting it could continue to be an issue throughout the 2022 calendar year as well.
TJ Denzer posted a new article, Nintendo (NTDOY) cuts Switch FY 2022 production target by 1.5 million units
Nintendos stock has been blah
Wow. NVDA is up over 11% right now.