Japanese game maker Nintendo sees no quick fix for chips shortage

The president of Japanese video game maker Nintendo says the shortage in computer chips needed to make its Switch machine is a serious problem unlikely to be fixed soon

Via AP news wire
Friday 05 November 2021 06:17
Japan Nintendo
Japan Nintendo

The shortage in computer chips needed to make the Nintendo Switch machine is a serious problem unlikely to be resolved soon, the president of the Japanese video-game maker said Friday.

“The extremely tight situation remains, and the future is uncertain,” Shuntaro Furukawa told reporters.

Furukawa said the dearth of computer chips, which is affecting the manufacturing of many products, was behind Nintendo's decision to cut its forecast for Switch sales for the fiscal year through March to 24 million machines from an earlier 25.5 million units.

He said plans for the next fiscal year and beyond were even more difficult to predict.

Production and shipping disruptions related to the coronavirus pandemic are plaguing electronics manufacturers, automakers and many other industries.

Kyoto-based Nintendo Co. said the lack of chips was also hurting design efforts for its next game machine. Nintendo is developing a device to follow the Switch, although it has not said when sales will begin.

Software development, including applications for mobile devices, has not been hindered by such problems, said Shigeru Miyamoto, the company’s star game designer.

The Super Mario movie, a collaboration with U.S. studio Illumination, won’t be released until December 2022, Miyamoto said. Other movies may be in the works.

Furukawa said Nintendo hopes that goods and theme parks will help coax people to become interested in his company’s games.

Nintendo faces competition both from longtime rivals such as Microsoft Corp. and Sony Corp. which offer their own game consoles, and also from newcomers to gaming, like Netflix and Google

On Thursday, the company reported a 19% profit drop for the fiscal first half, mainly because of a significant boost in profit the previous year, when people stuck at home by the pandemic turned to its products. Nintendo’s April-September profit totaled 171.8 billion yen ($1.5 billion), down from 213 billion yen.


Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in