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Nintendo Switch shortages due to Coronavirus could hit US and EU

nintendo-switch-shortages

Nintendo Switch shortages may become a reality soon due to the Coronavirus. According to sources with knowledge of Nintendo’s supply chain, the company has a bottleneck in production that could affect the US and Europe in a matter of months. This bottleneck could see retailers struggle to get enough stock to meet the demand of customers.

nintendo-switch-components

Component delay

Earlier this month, Nintendo stated that there would be no Switch shortages in the US and EU. Issues were hindering console supplies to the Japanese market, but Nintendo claimed that US and EU markets would remain unaffected. Now, however, Bloomberg reports that a limited component supply from China has delayed production in Nintendo’s Vietnam factory. This factory is primarily used to produce Nintendo Switch consoles for the US market.

According to the component supplier, the stock of components that they could produce in order to meet the demand was already quite tight before the Coronavirus outbreak. As such, the delay could severely affect the company’s current orders. It may force them to refuse new supply orders in the future, too.

According to Bloomberg, this limited component supply will not harm shipments of Nintendo Switch consoles for February and March, as those shipments have already been dispatched. Instead, a delay for shipments leaving either this or next month would result in Switch console shortages by April. The US accounts for a little under half of Nintendo’s business, so such a shortage could have a massive impact on the company as a whole.

Nintendo-Switch-shortages

Distribution of Nintendo’s revenue from Apr-Dec 2019

Speaking with Bloomberg, suppliers within the Chinese factories that provide components to Nintendo said that they expect at least a few more weeks of Coronavirus-related delays. The primary concern among these sources is bringing their workers back in too early. Doing so could cause an outbreak on the factory floor as the virus develops in those who showed no symptoms initially.

Immediate impact

Animal Crossing: New Horizons launches in just under one month. Alongside the game’s release comes a new limited edition console, one that has been so popular that many retailers have stopped taking pre-orders. While current orders should be safe, the Coronavirus outbreak may cause further supplies of the console to be delayed until much later in 2020.

[Source]

Jamie Sharp
Started out playing Metroid 2 on the GameBoy at around 5 years-old, and now I write about games all day long. Can't play Switch and drive, I've tried. As time goes on the Switch is quickly becoming my favourite console of all time.

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