I’m just going through a phase without semiconductors…
When it comes to Nintendo, they’re generally known for doing (mostly) good things for their consumer base, and they also know how to make sure they keep a good thing running…sometimes even to a point where it’s just a little too much. But, with the Nintendo Switch, Nintendo reached a peak it hadn’t reached since the Wii (yes, that was only two generations ago, but it still counts!!!). The system has some amazing sales going on, and not only that, they have an impressive lineup of titles that are not only for buy right now, but you can expect a lot more to come this year and next.
But, just like other console makers, they are going through tough times in terms of console manufacturing. Because if you remember the recent sales numbers Nintendo Switch is over 111 million but in the quarter by quarter analysis its sales are down over 1 million due to shortage of semiconductors that affects the industry. It’s bad, of course.
In an interview however, Nintendo President Shuntaro Furukawa spoke about the shortage and how it wasn’t going to make a difference for Nintendo as a whole. They’re still going to sell all three versions of the Switch from the regular version, the Lite, and the OLED, and they’re going to make sure it’s still at a price everyone can afford:
“We will work out the best strategy as we go along. We are doing our best to source high quality products at an appropriate price for the next few years.
He claimed that a price increase was not in the cards, not only because it was more about “demand outweighing supply”, but software for the Switch is also something. something that helps them make a profit. Indeed, the console market may be slowly declining in terms of what can be made, but the software market is still going strong, to the point where many Nintendo Switch titles are selling millions of units.
Additionally, Nintendo knows that with key franchises yet to be released this year, surging software sales will no doubt make up for some of what’s lost in the console sales market.
Going forward, it will be interesting to see how the three major console manufacturers try to adapt to the shortage of semiconductors. Especially Microsoft and Sony, who launched their new consoles before everything went down, and therefore their sales are also hampered by it. It’s impossible to know when this shortage will end, so as such it will be something to watch out for in the future, no matter which side you are on.