Nintendo has suffered another supply chain disruption in Japan, where it is experiencing a "frustrating" slowdown in sales -- down 33 percent from April to June compared with a year ago, according to a new report by Nikkei. Switch sales in Japan totaled about 840,000 units in the most recent quarter, according to Famitsu.
A Nintendo spokesman told the Nikkei how the "chip material shortage" was affecting Nintendo's production line. That's a drop of about 10 percent in the period (April-June) compared to 2020.
Nintendo has also presumably had problems procuring Bluetooth wireless communication components for controllers and consoles, as well as analog chips used to control current. While negotiations are under way to secure the required parts, a Nintendo spokesman said, "the outlook is not clear."
Nintendo is currently competing for parts with other gaming companies, such as SONY, which is also experiencing supply chain disruptions. There are also tech companies, such as smartphone makers and even car companies, that need these vital components.
Nintendo's goal for the current fiscal year is to sell 21 million switches by The year ending In March 2023, but that doesn't take into account the latest round of shortages, and nintendo is now expected to revise its 340 billion yen net profit forecast for the current fiscal year.