Nintendo is reportedly struggling to obtain essential Switch components
Production being held up by lockdowns in Malaysia and the Philippines
Nintendo is said to be facing difficulties obtaining key Switch components in Asia due to disruption caused by the coronavirus.
While the firm said last week that delays in hardware production and shipping were gradually recovering, a new Bloomberg report claims Switch manufacturing is likely to be limited this year due to government enforced lockdowns.
The platform holder is reportedly struggling to procure printed circuit boards in Malaysia and passive components that attach to those boards in the Philippines.
Nintendo has forecast Switch sales of 19 million units during its current fiscal year ending in March 2021, down from 21 million in FY20.
Nikkei claimed in April that Nintendo was hoping to produce about 10% more Switch units in 2020 than it did in 2019, when it manufactured some 20 million, to capitalise on a significant increase in demand ahead of the launch of PlayStation 5 and Xbox Series X during the coming holiday season.
“The inventory may recover in the summer, but we may see shortages again toward the year-end because Nintendo wouldn’t be able to produce enough units for the shopping season,” Hideki Yasuda, an analyst at Ace Research Institute, told Bloomberg.
In an investor Q&A following the publication of its latest financial results last Thursday, Nintendo said it will increase its advertising budget during the mid-stage of Switch’s life cycle in a bid to reach consumers who don’t currently play games.
It also warned of potential software and service delays due to disruption caused by the coronavirus.