Nintendo won’t likely be able to sustain Switch’s demands on a global scale due to the coronavirus outbreak by April, according to a report from Bloomberg.
The Japanese platform owner had already informed about risks coming from the outbreak in China, but never shared a precise time involving how and when shortages would happen.
Japan is already suffering shortages due to the complete success of the platform, thanks to mobile-payment providers’ cashback campaigns. The United States and Europe markets are said to be served well over the next month since shipments for February and March have already been dispatched from Asia.
However, internal sources claim things are about to change, with Nintendo having issues with components crafted in China that we’re told are causing a bottleneck at the Vietnam factory where Switch consoles are being assembled.
The shortage could harm Nintendo’s business with Switch in the United States, which accounts for more than 40% of its overall sales, in a moment when the platform holder is planning to release an Animal Crossing: New Horizons bundle.
The company has commented that “we do not see any major impact on the shipment to the U.S. currently, but we will remain vigilant and take steps if necessary,” even though it reckoned that “it’s possible the supply would be affected by the virus if it becomes more widespread and prolonged.”
In late January, Nintendo president Shuntaro Furukawa had already mentioned that shortages could happen soon because of the outbreak spreading, even though this is the first time we get a timeframe for these issues’ impact.
At this moment, production is said to have been suspended for “a few more weeks.” This will likely depend on how much the coronavirus outbreak will manage to spread. Should this be even more serious than it currently is, the shortages could be unavoidable.
Published: Feb 17, 2020 03:43 am