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Nintendo reduces the number of Switch devices due to lack of chips

 Nintendo will only be able to produce about 24 million Switch units in the fiscal year through March, 20 percent less than the original plan.

Nintendo reduces the number of Switch devices due to lack of chips

Its production has been halted due to shortages in semiconductors and other electronic parts amid strong demand for the Switch, including its latest release, which was released on October 8.

The Nintendo problem is a reminder of the far-reaching impact of the global supply crisis that has affected a wide range of industries from automobiles to electronics to machinery.

The Kyoto-based company originally planned to produce 30 million Switch units against the backdrop of the increasing demand for games caused by the coronavirus pandemic, which has forced people to spend more time at home.

However, bottlenecks soon emerged in production around the spring of key components, including microcomputers.

The company concluded that it had to adjust production targets because it was not able to secure adequate supplies. Nintendo's suppliers have been notified about the production cuts.

A Nintendo spokesperson acknowledged that production was affected by a lack of components. "We are evaluating its impact on our production," the spokesperson said.

The company's president, Shuntaro Furukawa, said Nintendo was not able to manufacture as many consoles as it wanted. And there is still uncertainty about production.

Furukawa added that the demand for Switch remains strong. Retailers had to ration sales of the latest version, which comes with OLED screens, using a lottery system.

Nintendo produces 24 million units until March 2022

The supply crunch sent Switch sales down 37 percent to 214,000 units in September. That compared to last year, which marked the third consecutive month of annual declines.

Nintendo had hoped to sell 25.5 million units in fiscal 2021. But the goal was lower than the 28.83 million units sold in the previous fiscal year.

This number is now set to drop further. The company has sold more than 89 million units of the Switch since its launch in 2017.

Switch sales are on track to surpass the 102 million Wii units that the company has sold since the platform was launched in 2006.