Nintendo set to increase Switch production due to sustained demand
How high can it go?
Nintendo just closed out 2022 with the Switch being the best-selling hardware in Europe, North America and Japan. It’s clear that audiences around the world aren’t done with the Switch yet, and Nintendo seems to think there’s still considerable demand moving forward.
According to a Bloomberg article, Nintendo is looking to increase production of the Switch for the upcoming fiscal year. Nintendo had originally slowed production due to component shortages, but with improved situation and a market still hungry for Switch, Nintendo intends to move ahead with more production.
Seeing increased production at this point in a platform’s lifespan is quite unexpected, but when the Switch is putting up numbers like it did in 2022, it’s hard to argue with the move. Sure, it’s likely Switch sales will continue to drop in 2023, but there’s no doubt tens of millions of units can still find their way into homes across the world.
This move puzzles me a bit. It's estimated they shipped 21m units in 2022, and they're looking to do more than that in 2023?
Props if they can do it, but in it's 7th year, I'm a little skeptical they can not only keep momentum, but exceed previous years.
Maybe they've got some killer software in the works that we don't know about yet. Guess we'll find out soon!
I guess the parts shortages are subsiding all around. As for the sheer number they think they can sell going forward…price cut?
20 million more in the next fiscal year? I don't see it happening myself. I think Nintendo have at least one big game to release, besides Zelda: TOTK. Probably a Mario game to enjoy the publicity around the upcoming movie. Perhaps a new Donkey Kong game as well. It's so disappointing that the pandemic possibly killed the improved Switch model and now we'll have to wait for a new generation instead. And I don't get talk of shortages, there's been no Switch shortage whatsoever in Ireland. Maybe it's a select regional thing.
Ramp up a last major production run before moving that production capacity to the next system. That makes sense. They can move production onto the next system in 2024 and still have stock reserves of Switch.
They’re not saying they’re increasing their sales forecast for the coming fiscal year, just their production of systems.