After shipping 21 million consoles in the year, Nintendo is planning to expand its production of Switch Consoles in the coming fiscal year. Suppliers and assembly partners were told to churn out more units starting in April with no specific target.
People make line up for Nintendo's new video game console Switch during its presentation in Tokyo on January 13, 2017. Nintendo on January 13 unveiled its new Switch game console, which works both at home and on-the-go, as it looks to offset disappointing Wii U sales and go head to head with rival Sony's hugely popular PlayStation 4.
by KAZUHIRO NOGI/AFP via Getty Images
(Photo : KAZUHIRO NOGI/AFP via Getty Images) People make line up for Nintendo's new video game console Switch during its presentation in Tokyo on January 13, 2017. Nintendo on January 13 unveiled its new Switch game console, which works both at home and on-the-go, as it looks to offset disappointing Wii U sales and go head to head with rival Sony's hugely popular PlayStation 4. / AFP / Kazuhiro NOGI
Increasing Production of Switch Console
Kyoto-based Nintendo Co. is planning to increase production for its Switch console in the coming fiscal year.
Last November 2022, Nintendo lowered its sales forecast for the console to 19 million units because of component shortages. As per Bloomberg's report, the company is more convinced and confident in making more consoles as demand remains strong.
Starting in April this year, suppliers and assembly partners will start the increased production. But as of the moment, the company has not talked about the precise target for the upcoming fiscal year. If demand decreases than expected, the company might revise its plans overtime.
Analysts' Take
UBS Securities Analyst Kenji Fukuyama stated that sales in the recent holiday were not that strong despite having improved supply for its console, and the slowdown of sales is unavoidable.
"People will soon start speculating about next-generation hardware and are likely to refrain from buying the old system," he added.
Meanwhile, Toyo Securities Analyst Hideki Yasuda stated that the increase in sales is still possible if Nintendo offers more game-themed special editions.
Nintendo Switch received historical sales since its launch because of its marquee games, including Animal Crossing: New Horizons, which boomed during the pandemic, and the highly anticipated The Legend of Zelda: Tears of Kingdom, which will debut in 2023.
The company is also rumored to release a Zelda-themed Switch that would attract fans and existing console owners to buy another unit, as per Screen Rant's report.
Nintendo Switch was named the United States Best-Selling Console for 2022 by outselling PS5 and Xbox X/S in the past years. Gaming Spot reported that the gaming console has been at the top for the last five years consecutively.
Competitors
By meeting the 19-million sales target for this fiscal year and surpassing the next forecast, Nintendo might have a total lifetime sales of $150 million. These numbers were only surpassed by Sony Group Corp. for its PlayStation 2 up to date.
Despite the shortages of different components and semiconductors, gaming companies remain resilient as day by day, it diminishes across the electronic industry in recent months. Aside from Nintendo's goal, Forbes reported that Sony is also expressing its confidence in its PlayStation 5's sales.
Sony's Jim Ryan declared that the gaming console shortage of the first few years of release is now over. "Everyone who wants a PS5 should have a much easier time finding one at retailers globally, starting from this point forward," he said.
