The lack of chips leads to production limitations

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Anyone looking to buy a PlayStation 5 knows the problem all too well. Due to the current worldwide chip shortage, the console is almost impossible to buy. It will probably remain that way for a while.

At Nintendo, these problems have not been so pronounced until now. However, one cannot completely ignore this problem, which should explain the moderate start of the new OLED model. Nikkei Asia now specifically reports how badly Nintendo is being hit by the lack of chips.

Instead of 30 million but 24 million Nintendo Switch

In the current fiscal year, which ends in March 2022, Nintendo could produce 20% fewer Switch consoles than previously planned. Despite continued strong demand, partly due to the pandemic, only 24 million consoles are expected to be produced; the original plan was 30 million. Frankly, that would have been a new record.

Until now, Nintendo had planned to sell 25.5 million Nintendo Switches in the current fiscal year. Last financial year it was 28.83 million, so a decrease was already expected. It is therefore likely that Nintendo will now have to adjust the targets further downwards. It remains to be seen whether these bottlenecks will lead to severely limited availability in the retail sector.

The chip shortage affects other industries

Other industries are also being hit hard by the current chip shortage. There are exemplary in the automotive industry huge limitationsShort working hours, long delivery times and models that can no longer be ordered are the result. That brings more Supply chains of the supplying companies confused, which other auto parts can’t provide.

through Nikkei Asia, Images: Nintendo

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Addin
I am the Editor for Gaming Ideology. I love to play DOTA and many other games. I love to write about games and make others love gaming as much as I do.

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