Nintendo Shares Lose After Cutting Switch Console Production Target By 20%

  • Nintendo Co Ltd NTDOF NTDOY will produce about 24 million units of its popular Switch game console in the fiscal year through March, 20% below an original plan Nikkei Asia reports.
  • The production was affected by the crisis of semiconductors and other electronic parts amid solid demand for Switch, including for its latest version released on October 8.
  • Nintendo initially aimed to produce 30 million Switch units to tap the pandemic triggered budding demand for computer games.
  • The emergence of production bottlenecks around springtime for critical components, including microcomputers, led to revising the production targets. 
  • Nintendo President Shuntaro Furukawa acknowledged the inability to manufacture their targeted console units.
  • Furukawa also admitted the robust demand for Switch. 
  • Retailers have had to ration sales of the latest version by using a lottery system. 
  • The supply crunch has left Switch with a 37% fall in sales to 214,000 units in September year-on-year, marking the third straight month of year-on-year declines.
  • Nintendo aimed to sell 25.5 million units in FY21 but missed the 28.83 million unit-benchmark sold in FY20, looking for a further drop. 
  • Price Action: NTDOY shares closed lower by 3.55% at $53.57 on Tuesday.

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