Bloomberg is reporting that Nintendo has increased its Nintendo Switch production targets. This comes as the shortage of key components is easing, allowing Nintendo to attempt to meet the increased demand for Switch hardware.
In April this year, Nintendo determined to produce 22 million Nintendo Switch units by the end of March 2021. Now those close to production claim that the company is upping its Switch production target to 25 million. This will see assembly partners working at “maximum capacity” through December.
This new figure of 25 million units would suggest Nintendo will easily beat its forecast of 19 million units for the fiscal year. It is believed this earlier forecast was either a result of worries over the COVID-19 coronavirus pandemic or simply a conservative estimate. Although, it is still possible the quarter that covers January to March could see a downward trend in demand for Switch hardware.
Nintendo was already pushing up Switch production before the pandemic hit, and then Animal Crossing: New Horizons became a runaway success. Production partners initially prioritized more worthwhile contracts for smartphone manufacturers, leading in part to lower Switch stock levels, though that’s now starting to change. These partners now have more capacity because of the economic downturn, as well as the growing conflict between the US and China.
With no game proving to push units as well as Animal Crossing: New Horizons since its release, it looked like the momentum of Switch sales might slow towards the end of the year. However, with Pikmin 3 Deluxe announced, perhaps the game can help sustain Switch sales for the second half of 2020.