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Nintendo warns that chip shortage will impact on Switch sales

Nintendo has reduced its future sales for the Switch handheld game device by 1.5 million units.

Nintendo warns that chip shortage will impact on Switch sales

The global chip crisis has affected almost every area of technology! Since everything revolves around semiconductor chips, tech businesses are experiencing massive supply chain issues post pandemic. 

According to BBC, The Kyoto-based game giant now says it expects to sell 24 million units this financial year – having previously forecast sales of 25.5 million units.

Chip designers ARM recently warned the scarcity could delay Christmas gifts.

“Our shipment forecast for the second half was reduced because of the change in our production plan due to the effects of the global semiconductor shortage, on the other hand, we revised the Nintendo Switch software forecast up”

Nintendo wrote in a document to go with its financial results.
Image via Career Gamers

The company said, while predicting that it would sell 10 million more games than it had previously thought, bringing the total to 200 million.

As reported by the BBC, Simon Segars, chief executive of chip design firm Arm, told a conference the mismatch between supply and demand is “the most extreme” he has ever seen, with the wait for chip supplies taking up to 60 weeks.

“If you haven’t bought all your devices yet, you might be disappointed,” he warned delegates at the Web Summit event.

Since every aspect of technology is affected, PlayStation 5 will face a major supply chain issue and the issue could possibly continue til 2022.

“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” 

Phil Spencer – Microsoft Gaming Boss

Ranjit Atwal, a senior research director with Gartner, told the BBC: “The component shortage issues are industry-wide, and no vendor is immune from the impact – some may get preferential treatment, but all will be impacted.”

“For consumers, ‘first-come, first-served’ will be the motto for Christmas.”

Apple is also suffering from this global chip crisis, the company expected to produce 90 million units, but now Apple is now forced to inform its partners that the total units would be reduced by up to 10 million devices.

Semiconductor shortage has now become a worldwide concern, with IT giants suffering far more than expected. Mr. Biden, the US president, met with a number of CEOs to discuss this worldwide issue.

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Written by Hammad Khalid

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