The worst prediction from Nintendo CEO, Shuntaro Furukawa, came true. Furukawa revealed that the Nintendo Switch will experience scarcity as has happened in other console companies.
In a Q&A session with investors, he emphasized that the company is currently unable to fulfill the Switch’s market demand. This is because Nintendo lacks semiconductors, which is the most important part of it. Semiconductors are not only used in gaming consoles, but also in computers, smartphones, and other popular electronics.
Even though Furukawa had prepared and secured the materials needed to make the Nintendo Switch, these materials were still lacking.
“Demand for hardware continues to exceed our expectations even after the start of this calendar year, and current production is unable to keep up with the high demand due to the insane supply and demand situation for semiconductor materials around the world,” said Furukawa.
“Although we are currently trying to produce as many units as possible, the fact is that our production plans are more uncertain than in previous years,” Furukawa concluded.
Nintendo Switch became the best-selling console at the start of the pandemic. Even the price of this console in Indonesia can reach twice the usual price. The launched games also support console owners to be able to play with friends without leaving home. It can be predicted that Nintendo will have the same fate as Sony and Microsoft, the scarcity of PlayStation 5 and Xbox Series X|S consoles on the market. The PlayStation 5 is even predicted to be difficult to obtain at least until 2022 due to the global semiconductor shortage.
The difficulty of getting semiconductors is due to several factors. Starting from the COVID-19 pandemic, to the United States’ trade policy towards China when President Donald Trump was still in office.