Chip shortage will limit supply of Switch consoles, Nintendo warns

The Japanese gaming giant said it would sell fewer Switches this year due to the silicon drought, raising doubts for shoppers hoping to snag one in time for Christmas

(The Independent)

The global microchip shortage is limiting production of Nintendo Switch game consoles as companies across the world scramble for silicon.

In its latest financial report on Thursday, Nintendo warned that it would ship fewer Switches between now and March 2022 because of the ongoing semiconductor drought.

The company cut its forecast for expected Switch sales for the 12 months ending next March by 6 per cent from 25.5m to 24m, blaming “a change in our production plan due to the effects of the shortage”.

In a separate document, it added: “The extended impact of both Covid-19 and the global semiconductor shortage creates a state o continued uncertainty, with the possibility of future impact on production and shipping.

“While these and other unforeseen risks exist, we continue to take all necessary measures in conducting business.”

It comes after the head of microchip maker Arm warned customers that if they have not yet bought games consoles and smartphones, they might not be able to get any before Christmas.

The chip shortage is estimated to have torn through at least 169 different industries this year, affecting the supply of everything from concrete mixing equipment through household appliances to modern gadget-packed cars.

Apple is also reportedly expecting to sell 10m fewer of its new iPhone 13 models.

Nintendo was hugely successful during the pandemic, with many people buying Switches to entertain themselves through lockdown and finding virtual community inside its hit game Animal Crossing: New Horizons.

However, its fortunes have lately slowed as more countries open up their in-person economies, with sales of all products falling by nearly 10pc in the three months ending this June compared to the same period in 2020.