According to a new report from Nikkei, Nintendo is currently experiencing a “frustrating” sales slump. Compared to a year ago, Switch sales in Japan fell by 33 percent from April to June, and data from FamiTone magazine shows that Switch sales in Japan totaled about 840,000 units in the most recent quarter.
A spokesman for Nintendo told Nikkei News that a “shortage of chip materials” is affecting Nintendo’s production lines. The same period (April to June) is down about 10% compared to 2020.
It is speculated that Nintendo is also having problems sourcing Bluetooth wireless communication components (for joysticks and consoles) and analog chips to control current. Apparently, negotiations are underway between the parties concerned to obtain the required components, but a Nintendo spokesperson said, “The outlook is not clear.”
Nintendo is also currently competing with other game companies for parts (such as Sony, which has also suffered supply chain disruption problems). There are also technology companies, such as smartphone manufacturers and even car companies, who also need these important parts.
According to Nintendo’s official data, the Switch has sold more than 107 million units worldwide as of March 31, 2022. Nintendo’s goal for this fiscal year is to sell 21 million Switch units.