Nintendo Switch Availability Won't Improve Anytime Soon

Posted: May 31 2017, 6:01am CDT | by , in News | Technology News

 
Nintendo Switch Availability Won't Improve Anytime Soon

Blame Apple for the parts shortage and poor Switch availability

Nintendo is having a massive success with the Switch game console and is having some massive challenges as well. The problem for Nintendo is that it is very far from meeting demand for the new console meaning many that want to buy one are left unable to do so. Fox Business reports that one of the big reasons that Switch supplies are so constrained is that Nintendo is fighting for parts to build the console against the likes of Apple and other firms.

Industry sources claim that Nintendo is telling its suppliers that it wants to make 20 million Switch consoles in the fiscal year ending on March 2018. The official sales target is 10 million units sold for the year, but it's clear to everyone that if Nintendo can build more of the consoles, it can sell more of them.

The challenge for Nintendo and other firms fighting for parts to build smartphones, game consoles, and other gadgets is shortages of major components such as NAND flash memory chips to store data, LCD screens, and tiny vibration motors used in the Switch controllers for tactile feedback.

"Demand for our NAND flash memory has been overwhelmingly greater than supply, and the situation is likely to stay for the rest of this year," said a spokeswoman at Toshiba Corp., a major maker of NAND chips. Some of that shortage is blamed on smartphone makers like Apple consuming massive quantities of the components.

The problem for Nintendo is that it is selling the Switch at $299 while rivals for the parts like Apple are selling smartphones at two or three times that price. This means they have higher margins than Nintendo and can offer better terms. If Nintendo ups its terms to secure more parts, the price for the Switch becomes a money loser at $299 MSRP. With many consumers happily paying well over MSRP for bundles with stuff they don't want or via scalpers, I think a modest price increase to improve availability would be welcome by most gamers. Nintendo's president Tatsumi Kimishima has made it clear he doesn't want to sell Switch consoles at a loss.

One interesting note, Nintendo wants to make 20 million Switch consoles by the year ending on March 2018 and the company could sell that many if it had them judging by demand. The Wii U sold a measly 14 million units over its entire life.

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<a href="/latest_stories/all/all/3" rel="author">Shane McGlaun</a>
Tech and Car expert Shane McGlaun (Google) reports about what's new in these two sectors. His extensive experience in testing cars, computer hardware and consumer electronics enable him to effectively qualify new products and trends. If you want us review your product, please contact Shane.
Shane can be contacted directly at shane@i4u.com.

 

 

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