Nintendo's President says the Switch's production is "uncertain" for next year

Nintendo's President says the Switch's production is "uncertain" for next year ...

Nintendo President Shuntaro Furukawa said in an interview with Nikkei that while semiconductor supply concerns are expected to improve for the remainder of this fiscal year, next year is more "uncertain." This follows the publication of Nintendo's financial report for the first quarter of 2022-2023.

Nintendo reported a 21.9 percent decline in earnings for April - June 2022, but the company also assured consumers that it would not hike the price of the Switch and that semiconductor shortages would improve over the summer and autumn period.

  • Further reading - Nintendo Rules Out Any Price Increase On The Switch In Japan... For Now

Furukawa declares that Nintendo will "work out the best strategy" as it goes along and that it is doing its best to "procure high-quality goods at an appropriate price." However, things remain unclear for the remainder of the current fiscal year:

"We're on track for improvement from the latter half of this summer thanks to the support of several business partners. However, in terms of our sales forecast of 21 million units for the fiscal year ending March 2023, we only have a clear production forecast for this year. "Overall, things are uncertain."

Nintendo Switch supply should improve for the remainder of the year thanks to this partnership, although it isn't clear what the demand and supply will be like next year, according to Furukawa. All three Switch models will still be sold, including the standard, Lite, and OLED.

  • Further reading - Nintendo Switch Sales Surpass 111 Million

Furukawa reiterates that Nintendo isn't considering a price rise "at this point," but the President was also asked about increasing material and shipping costs.

"For the time being, our OLED model will continue to be less profitable than our other models. Shipping costs have certainly increased, not only by air, but also by sea. We're thinking about what we can do.

Nintendo benefits from the weaker yen, because so much of its sales are from abroad, but also our overseas promotional and staff expenses. We're making more inventory purchases in foreign currencies to counteract that.

While the yen is indeed weakening, costs across the world are also rising, causing Nintendo to consider other possibilities, including as Furukawa asserts above purchasing more inventory in other currencies.

Furukawa raises the issue of shipping costs, and the company must think of a way to get around this.

The OLED costs more to produce, and while it's more expensive than the standard model (and often the best-selling Switch console week-on-week in Japan), it's only marginally more expensive.

Despite any unforeseen problems with supplies, chips, and prices, Furukawa believes that "hit hardware" in the latter part of the year will greatly aid the console, particularly citing Splatoon 3 (9th September) and Pokemon Scarlet & Violet (18th November).

Mario + Rabbids Sparks of Hope and Bayonetta 3 are among the other major platform exclusives that will be released during the remainder of 2022, while The Legend of Zelda: Breath of the Wild 2 may get a chance of being released before the end of the financial year (March 2023) as it is only dated for Spring 2023.

What do you think of Shuntaro Furukawa's remarks? Do you think the semiconductor shortage will improve next year more than previously? Let us know in the comments.

[source asia.nikkei.com]