Nintendo, like many other tech companies, is having trouble producing enough hardware to keep up with demand. This is due to a semiconductor shortage that doesn’t seem to have an end in sight.
During Nintendo’s investor Q&A, Nintendo president Shuntaro Furukawa went into more detail on the semiconductor shortage, and how it’s impacting Nintendo’s ability to make Switch hardware, thus leading to lowered hardware sales forecasts. You can see Furukawa’s statement on the matter below.
The financial forecast for the current fiscal year takes into account the present manufacturing and sales environments, and the following three explanations are the key points. The first point is the hardware sales units forecast for this fiscal year. As the global shortage of semiconductors and other parts continues, we are still experiencing difficulties in the procurement of necessary components. There remain uncertainties within our plans for hardware production. Considering this production situation, we decided to set our hardware sales units forecast at 21 million, which is a decrease of about 2 million units year-on-year.
…The third point is that we must account for the balance in supply and demand of components such as semiconductors, as well as the situation regarding logistics. The financial forecast for the current fiscal year anticipates a rise in manufacturing costs (due to an increase in the price of components such as semiconductors) and a substantial rise in the cost of shipping due to a supply-demand imbalance surrounding the transportation industry, affecting the transportation of hardware produced in preparation for the holiday season.