Chip shortages, logistics chaos, switch supply is likely to stagnate in early 2022

Affected by chip shortages and logistics chaos, Nintendo said that after the beginning of next year (2022), the supply of Switch game consoles may be stagnant.

Kyoto News reported that Nintendo President Shuntaro Furukawa said in an exclusive interview on the 27th that due to the global chip shortage and logistics chaos, the supply of Switch may stagnate after the beginning of 2022.

According to the report, if the supply stagnation is prolonged, Nintendo's sales target for this year's (April 2021-March 2022) Switch may not be reached. On November 4, Nintendo revised its global sales target for this year's Switch series from an estimated 25.5 million units to 24 million units, reducing the annual sales target by nearly 20% (about 17% year-on-year).

Regarding the end-of-year peak season of 2021, Shuntaro Furukawa said that Switch sales continued to be strong, focusing on the OLED model launched in October, and in the US market, where logistics continued to be chaotic, in order to catch up with the "Black Friday" shopping season at the end of November, some products were transported by air, while in the European market, rail transportation was used for the first time.

Shuntaro Furukawa pointed out that "after Black Friday, it is impossible to say that there will be sufficient supply of products to meet demand"; regarding the situation after the beginning of next year, Furukawa Shuntaro said, "Depending on the demand situation, I am afraid that as originally worried, it will not be possible to produce the quantity that is hoped to be produced." ”

According to Yahoo Finance's offer, as of the japanese stock market close in the morning of the 29th (10:30 a.m.), Nintendo fell 0.93% and temporarily closed at 54,550 yen, and Nintendo's stock price has fallen by about 17% so far this year, far behind the Topix index (TOPIX) in the same period of rise of about 10%.