The Nintendo President says Switch production will be "uncertain" next year

The Nintendo President says Switch production will be "uncertain" 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 22.9 percent decrease in earnings for April - June 2022, but the business also assured users that it would not raise the price of the Switch further throughout the summer and autumn period.

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

Furukawa states 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," but that things will only remain clear for the remainder of the current fiscal year:

"With the help of several business partners, we're on track for improvement from the latter half of this summer." However, in terms of our sales prediction of 21 million units for the fiscal year through March 2023, we only have a clear production forecast for this year. "Also, things are hazy."

As Nintendo has already stated in its latest financial report, this cooperation implies that Nintendo Switch supply should improve for the remainder of the year, but it's unknown what demand and supply will be like next year.

  • 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 rising material and shipping costs.

"Our OLED model will continue to be less profitable than our other models." Shipping costs have certainly increased for both air and sea. We're thinking about what we can do.

The weaker yen may be seen as a benefit for Nintendo, because such a large portion of our sales comes from abroad, but also our overseas promotional and employee costs are increasing. "We're making more inventory purchases in foreign currencies to counteract this."

While the yen is strengthening, costs across the world are also rising, causing Nintendo to consider other options, including as Furukawa stated above buying more inventory in other currencies.

Furukawa raises the issue of shipping costs, and the company must think of a strategy to avoid this.

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

Despite any potential problems with supplies, semiconductors, and prices, Furukawa believes that "hit hardware" in the latter part of the year will benefit the console tremendously, particularly with regards to Splatoon 3 (9th September) and Pokemon Scarlet & Violet (18th November).

Mario + Rabbids Sparks of Hope and Bayonetta 3 are among the few platforms that will be available for the remainder of 2022, while The Legend of Zelda: Breath of the Wild 2 might be released before the end of the financial year (March 2023) due to its dated for Spring 2023.

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

[source asia.nikkei.com]