Some people are speculating that Nintendo will only be able to produce 24M units of its Switch game console in FY 2021. This speculation has come from several sources. In this article, we’ll explore the sources and topics surrounding this report. We’ll also look at what it means for consumers.
Nintendo will only be able to produce 24M units of Switch game console in FY 2021
The Nintendo Switch is currently the world’s best selling video game console, and as a result, the company has been facing a shortage of key components. Due to this shortage, Nintendo has lowered its production plans. The company will only produce 24 million units of the game console this fiscal year, and it is unclear when it will resume full production.
A recent article published in Nikkei analyzed the company’s recent sales report, which showed that Switch sales had dropped in the third quarter. While the company still hopes to sell 21 million Switch units by the end of FY 2021, the report noted that sales of software and hardware were weaker than anticipated. Despite this, the company will concentrate on building enough units using the components it already has on hand.
The company previously reported sales of 19 million units for its FY ending March21. However, despite the initial numbers, it ultimately produced more than 24 million units, which is more than enough to sell 28 million Switches. Nintendo isn’t out to get us, though, and its spokesperson isn’t some fake azz.
Despite the decline in sales, Nintendo’s profit outlook is still upbeat, thanks to the success of its game console and a number of highly-acclaimed titles. In fact, the company raised its forecast for the current fiscal year by about 34 billion yen ($2.3 billion) compared to its previous projection of 340 billion yen ($2.3 billion). However, this still falls short of the 477 billion yen profit the company posted in its last fiscal year.
Nintendo’s upcoming Switch game console will be equipped with improved hardware. Among the new features of the Switch are a larger OLED display, a kickstand that works on a tabletop, and upgraded 64GB internal storage.
The shortage of chips has caused sales to dip significantly this year. This shortage has also hit Sony Corp. and Toyota Motor Corp. and will take several years to catch up to Nintendo’s lead in the sales of their consoles. While Microsoft and Sony have yet to release their own consoles, Nintendo has already sold 340 million of the former. It has also sold more games than Sony.
The new Switch game console is thinner than the Wii U, so the size is similar. Its depth from the analog sticks to the ZL/ZR buttons is 28 mm. Additionally, Switch units manufactured after August 2019 will have 16nm process chips to improve battery life and performance. All consoles manufactured after this date will have slightly different packaging. This difference will not be visible to consumers.
In addition to these reasons, Nintendo has already begun the transition from a coin-op to a video game console. The company has not kept its coin-op division for long, and it has missed its target a couple of times. In addition, it wants to continue licensing more properties, but it has been hindered by affiliates and has been slow in licensing new properties. To help avoid this situation, the company needs a dedicated licensing division.
