Nikkei believes that thanks to the popularity of the new “Legend of Zelda” and “Mario”-themed movies, coupled with the favorable factors of the depreciation of the yen in terms of exchange rates, the demand for tourists to Japan has increased significantly, so this record can be achieved.

The game-related person in charge of the Japanese home appliance chain Shangxin Denki said: “Since the end of the long holiday in May, the number of overseas tourists visiting the store has increased, and more and more people have bought Switch.”

Nikkei believes that it is rare for a game console like Switch, which has entered its seventh year, to hit a record high in single-month sales.

Nintendo recently announced the report for the last fiscal year, with a turnover of 1.6016 billion yen and it is expected to sell 15 million Switch units in the fiscal year ending March 2024. game console.

As of March 31, 2023, Switch sales reached 125.62 million units. Nintendo said hardware sales fell 22.1 percent year-on-year to 17.97 million units, below its sales target of 21 million units set at the beginning of the year (later revised to 18 million units), as officials said shortages of semiconductors and other components affected production.

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However, despite the fact that the Switch has been out for years, Nintendo president Shuntaro Furukawa said during the company’s earnings call that a price cut to boost sales is not an option being considered at this time.

Shuntaro Furukawa said, “On the hardware side, the prices of certain materials have come down, but the overall cost is still high. We must also continue to consider the impact of factors such as inflation and exchange rates, which greatly affected production in the last fiscal year, so we need to ensure that we purchase enough parts in advance to ensure stable production. Even if raw material prices fall, this will take time to be reflected in manufacturing costs. At this time, we have no plans to reduce hardware prices in the current fiscal year. On the other hand, we also have no plans to raise prices, but the yen continues to be weak and procurement costs remain high, so we will continue to monitor the situation closely.”

It was previously reported that Switch sales reached 125.62 million units as of March 31, 2023. Nintendo said hardware sales fell 22.1 percent year-over-year to 17.97 million units, below its sales target of 21 million units set at the beginning of the year (later revised to 18 million units), which officials said was due to shortages of semiconductors and other components that affected production.

Shuntaro Furukawa also said there is no new or upgraded hardware in Nintendo’s annual plan, which means we won’t see new Switch models until the second quarter of next year.

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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.

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