Nintendo Switch production could be hit by global chip shortage
The Switch could be going the way of the PS5
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
Nintendo has revealed that it expects a drop in hardware sales of around 12% in the upcoming financial year, citing global chip shortages that could affect production of theNintendo Switchand, potentially, the rumoredNintendo Switch 2/ Pro.
In its full-year results statement for the2021-22 financial year, Nintendo predicted that its net profit for the current financial year that began in April will fall by 29% as a result of a predicted decline in hardware sales.
By the end of the 2021-2022 period, Nintendo predicts that it will sell around 25.5 million Nintendo Switch consoles, a drop from the 28.8 million consoles the company sold during the financial year just ended, with those sales boosted by increased demand for entertainment during the Covid-19 pandemic, as well as the spectacular success ofAnimal Crossing: New Horizons.
Component conundrum
Nintendo’s anticipated supply issues are hardly surprising considering the surge in demand for hardware components across the board. Analysts have alsoissued warningsforGeForce RTX 30-seriesGPUs, for example, predicting scarce availability of those products throughout the rest of 2021.
It’s also possible that Nintendo’s hardware output won’t just be limited to the Switch. If the company is indeed working on the rumored Nintendo Switch 2, then it’s likely that production of both consoles would be affected by the same supply issues that arestill affecting the PS5, which could lead to similarly limited availability of consoles for consumers to buy.
As Nintendo faces the reality of post-Covid component shortages, the company could still shore up profits in other areas of its business, such as the recently openedSuper Nintendo Worldtheme park based in Osaka, Japan, as well as within its mobile division, with games like Fire Emblem Heroes andPokémon Gocontinuing to generate huge amounts of revenue.
While the company might struggle a bit more on the hardware front this year, Nintendo still has plenty of game launches lined up for the 2021-2022 financial year, including the recently releasedNew Pokémon Snap, as well as the upcomingMarioGolf: Super Rush andPokémon Brilliant Diamond and Shining Pearlremakes.
Get the best Black Friday deals direct to your inbox, plus news, reviews, and more.
Sign up to be the first to know about unmissable Black Friday deals on top tech, plus get all your favorite TechRadar content.
It’s also possible that we’ll seeSplatoon 3,Pokémon Legends ArceusandThe Legend of Zelda: Breath of the Wild 2early in 2022, although no concrete release date exists for those games as yet.
Rhys is TRG’s Hardware Editor, and has been part of the TechRadar team for more than two years. Particularly passionate about high-quality third-party controllers and headsets, as well as the latest and greatest in fight sticks and VR, Rhys strives to provide easy-to-read, informative coverage on gaming hardware of all kinds. As for the games themselves, Rhys is especially keen on fighting and racing games, as well as soulslikes and RPGs.
Nintendo finally confirms that the Switch 2 will be backwards compatible
Don’t miss this rare sale on the Nintendo Switch Lite: Animal Crossing Bundle
I’m a die-hard Apple fan, but even I’ll admit that the Google Pixel 9 Pro is the best-looking phone of the year
