Nintendo Forced To Reduce Switch Production, Due To Chip Scarcity

Nintendo slashed its full-year Switch sales forecast. (photo: doc. unsplash)

JAKARTA - Japanese game company Nintendo Co Ltd said on Friday, November 5, that a global shortage of chips had forced the company to lower expectations in sales of its hit Switch device. The chip shortage has also hit their hardware development.

"The semiconductor situation has several effects on hardware development", Nintendo executive Ko Shiota, who heads the development team, said in an analyst briefing, as quoted by Reuters.

"We are looking for replacement components and tweaked designs to try and reduce the impact", he added.

The comments came a day after Nintendo president Shuntaro Furukawa said there was no sign of a reduction in the chip shortage, which is why Nintendo cut its full-year sales forecast for the Switch.

The Kyoto-based company relies heavily on its console business at a time when their deep-pocketed competitors such as Microsoft are expanding their subscription and cloud gaming services.

Nintendo on Friday declined to comment on plans for next-generation hardware. But they are referring to the development of "integrated hardware-software in the next game system" as it is called on the company slide.