Nintendo Switch: Supply Chain Problems
The Nintendo Switch has recently become five years old, and if the console's trajectory throughout that period can be classified as anything, it is an unqualified success for the Japanese business. The Nintendo Switch was released at a price that has remained nearly intact to this day, and for good reason: its sales have never dropped, making it the best-selling system of its generation month after month.
True, the best-selling console of its generation may be disputed, just as the generation itself may be debatable. Or, to put it another way, the league in which the Nintendo system competes, is not the same league in which the PlayStation 4 or Xbox One compete, let alone the PlayStation 5 and Xbox Series.
In addition to its exclusive catalog, which has its counterpart in the competition's exclusives, Nintendo Switch has benefited from the advantage of the hardware, not only because of the profit margin it provides but also because its components, which are less in demand and thus more accessible than those of the competition, have not been missing in a significant way to affect console production. That is, until now.
According to Nikkei, Nintendo predicts a 10% reduction in Nintendo Switch sales owing to supply chain issues, which has never happened before to such a degree. At the most, the business considered raising the price of the consoles, which also have their own.
Despite strong demand, the economic publication reports, "Nintendo expects to sell only about 20 million Switch consoles in the current fiscal year, a 10% decrease from the fiscal year 2021." The main obstacles in the production chain are a shortage of semiconductors and disruptions in logistics networks.
According to them, the blockade of Shanghai would be decisive for the situation that the firm is preparing to face, in which the company's response to the decline in hardware sales will be a rise in software sales, with the goal of compensating as much as possible for income losses. They will, for example, with the new The Legend of Zelda: Breath of the Wild, one of this year's most anticipated exclusive Nintendo Switch releases.
