Last week, we heard from Intel's boss how global chip shortages were likely to continue all the way through to 2023, and now we've got another update, this time from Nintendo's president Shuntaro Furukawa.
According to Furukawa, year-end sales of the Switch have been quite strong (especially for the OLED model), and Nintendo is now concerned it won't be able to make as many units as it wants, which could see supply stagnate after the start of 2022.
"it depends on the demand, but as we had feared, we will not be able to produce as many as we want to."
Here's the full rundown of what Furukawa had to say via senior analyst David Gibson:
So @Nintendo President was interviewed - 1) Supply of Switch may stagnate after start of 2022, 2) Said year end sales for Switch in 2021 were strong, especially OLED.
Plus, 3) In the US it had logistics problems and resorted to using airfreight to reach stores for Black Friday. 4) had used rail freight in EU for the first time to meet demand.
But said 5) adding that after the New Year, "it depends on the demand, but as we had feared, we will not be able to produce as many as we want to." - sounds like Guidance might be tough to meet. #NintendoSwitch
Nintendo's president also mentioned earlier this year in May how Switch production was struggling to keep up with consumer demand. Shortages and supply isuses have been an ongoing issue since the pandemic hit.
Have you had any difficulties acquiring a Nintendo Switch recently? How about an OLED model? Comment down below.
[source kyoto-np.co.jp, via twitter.com]
Comments 56
"We can't make too many, which gives us reason not to lower the price. Please understand."
Let me just say I'm glad I don't really care that much about acquiring an OLED model and am still happy with my OG launch Switch.
@Yosher
Me too!
Pretty far out from the launch of the Switch so nobody’s going to miss out on software because they can’t get one of the latest models
So finding a Switch OLED next year would be difficult then? Hopefully those ten Switch OLED and Switch Lite models I saw at Walmart the other day gets scoop up quick.
It was a matter of time before they burned through their stockpile of chips, impressive that it lasted this long. Considering chip demand they’d probably be better off looking at moving on from the Switch instead of producing a high quantity of outdated chips. Last thing they need is a bunch of outdated Tegra processors in a warehouse like THQ ended up with their tablet uDraw. I wouldn’t be half surprised if they quietly swap out the current Tegra with a newer version and don’t tell anyone other than file a few docs with the FCC. Wait… didn’t they file some documents with the FCC a few months ago?
@Yosher The bigger screen is perfect for first person shooters. Haven't really played much else though.
The next gen Switch with 4K has same power as base PS4 and won't release until 2023. It will be backwards compat with all Switch games and launch with a new Mario Kart, which features all of Nintendo properties ala Smash Bros. It's gonna be epic
@NewportBox100s Can't tell if you're joking or if you're bloomberg.
Then focus on bringing MORE games to the switch.
Nintendo has a big library, and can earn alot by bringing new games that we actually want.
@QueenKittenWrite Nah, it's all official. https://www.youtube.com/watch?v=jxCCOW6-o84
@NewportBox100s Lmao "Official"
If that's Official, then Miyamoto is my uncle
GUYS, THIS IS ALL A RUSE, NINTENDO IS GOING TO REVEAL THE HYPERSUPERDUPER SWITCH PRO WITH KNUCKLES AND A NEW FUNKY MODE, FEATURING DANTE FROM THE DEVIL MAY CRY SERIES IN 4K, AND THEY'RE DOING IT TOMORROW IN A SURPRISE NINTENDO DIRECT THAT IS GOING TO BE STREAMED DIRECTLY AT YOUR DOOR BY A NINTENDO REPRESENTATIVE!
@NewportBox100s It's probably going to be on par with PS4 Pro at the very least but will probably be backwards compatible with original Switch games, may still had the hybrid feature, and may probably had a new gimmicky way to play games as well. It may probably had bigger joycons too maybe.
Have, not had. Speak in future tense, not past for something that hasn't happened yet.
@BloodNinja or, you know, the well publicized global chip shortage
Really hoping that they burn through those Tegra chips as soon as they can and move on to a new console with a more powerful processor, a faster SSD and more RAM. Just think of what developers could do with a more beefed up Switch.
@VoidofLight : AND CO-HOSTED BY S CLUB 7 AND THE ONLY SURVIVING MEMBER OF THE MONKEES!!!
@NinjaGuy69
The chip shortage is the reason why a Switch successor isn't launching anytime soon.
@NinjaGuy69
Yeah, but those beefier consoles are not free, you know. I bought an OLED Switch at launch as well as millions of other people. It would be quite disappointing to see Nintendo burn through their Tegra chips stock within, like, 9 months of 2022 and release a "New Switch" a mere year after the OLED model.
I was able to pick a Switch Oled up off the shelf a few days before Christmas and they are still readily available in the UK.
A year after launch and you are lucky if you can pick up a PS5 or XsX - that's a supply issue!
@Yosher Still rocking my launch model here, flaccid battery life and all. Not about to shell out $350 for a prettier screen when the games play exactly the same otherwise. /o/
I hope that next nintendo console has 4k, even if it’s through DLSS, output and support for hdr(10+) and or dolby vision (while docked ofc). Or just straight way more power then the current Switch.
Removed - inappropriate
Well, this likely reinforces the view that a new Switch is not coming in 2022.
We already have Zelda confirmed for next year, and with a Mario movie in the holidays it's surely not long before a new Mario is announced and possibly also launched in 2022 - almost certainly a 2D Mario.
This would be the first time Nintendo have launched Zelda and Mario in the same year, on two seperate occasions on the same hardware. Another sign of the unrivalled success of Switch, but perhaps also a sign that Covid has seen them have to significantly change their plans... and also a clue that the next Hardware is close and WILL be backwards compatible.
Ask yourself this... if Switch is flying off shelves and breaking sales records left right and centre - why would Nintendo play even more software trump cards now? Wouldn't it be more sensible to hold them back to help shift new hardware?
As always, Nintendo are hard to predict, but certain things are obvious. If BotW2 arrives next year as planned, it surely guarantees backwards compatibility for next hardware.
@faint Jokes aside, I want to believe that. But how can there be a chip shortage and an increase in sales at the same time? For example, 81 million PC's were shipped in the third quarter of 2021 alone. Wouldn't that mean business as usual, instead of a shortage? It just makes me wonder!
Yeah sure this comment won't fuel scalpers at all. Going to get an OLED Switch today before things get...weird.
just wait for all the articles next week of new switch pro coming soon. lol
Scalpers will now buy more to rise the prices.
@NewportBox100s,
So official rumors then. and not so sure this is such a massive leak, as it's stuff we knew about anyway, and some pretty obvious Wii U ports, with of course a few educated guesses thrown in for good measure.
But don't worry the leaker is legit, but he does get things right and wrong.
Hardly news, Nintendo just had an advantage of a stockpile of chips before the pandemic started to hit, they would have burned through that stock by now and are relying on the manufacturers, just like Sony and Microsoft are doing.
@Yosher Same here, especially considering I almost only ever play it on my TV. I only play in handheld mode when I'm traveling, which isn't often (maybe only once or twice a year; such is the sad life of an American worker compared to my European counterparts).
I'm glad I've made the Decision Now, to Purchase a Nintendo Switch OLED! I'm happy I did too.
According to sales estimates by VGChartz, the Switch was the best-selling console - with 1,314,674 units sold - for the week ending December 18. This means the Switch has now sold an estimated 100.72 million units over its lifetime. This puts the console in rare company. Only the PS1, PS2, PS4, and Nintendo Wii have crossed the 100 million mark.
@jrt87 I did the Same! My V1 model was getting pretty loud. I can't get over how Nice my OLED really is! I'll just use my V1 for Mario Kart Live racing and Labo experiences for my Kids.
@BloodNinja Not if all those OLED’s were manufactured before the crunch started and they sat on them hoping the pandemic would pass after year one.
@BloodNinja the shortage is real. Sony had to throw in the towel on trying to increase manufacturing, so they lowered their PS5 forecast. Even though Nintendo has been the top selling console, hardware sales are much lower than they were last year due to availability. Some markets you can find a Switch, but my GameStop hasn't had any OLEDs in stock at all during this time. They sell through their other Switch systems pretty quickly, but it hasn't been a problem getting more of those ones. Just the OLED. They all gather around to admire PS5s and XSXs that come in used since they still haven't had one in store yet. Neither location.
Not all chips are created equal, but mainly TMSC is the manufacturer of all silicon for Apple, AMD, NVIDIA, Samsung and other chip developers. Another compounded problem is the passive resistor shortage, Malaysia is the primary country where every buy them and they're still running at 50% due to rolling lockdowns. Without these components, you're not going to be able to have power regulation, much less anything on a motherboard, so these chips will have to sit and wait. It's a giant mess.
The bigger problem on the horizon is the boat situation, logistics is a total mess right now. If making the product is no longer an issue, then you have it being held up at sea or in a dock. I work in industrial supply, the shortage is far reaching due to manufacturing on demand. No one kept a stock pile of anything, so for Nintendo to keep a healthy supply of Tegra chips was smart on them. Anything newly is going to take time to make, then manufacture and assemble. Unless your Apple, you're stuck waiting around for your orders and it seems TMSC has prioritized them (and Intel) over everyone else.
@Yosher I got the OLED a week ago and it is glorious.
It runs better than my vanilla switch, also.
I bet the new switch (4k) won't be released until 2024
I see a few predictions for the next nintendo console and they all seem to focus on the power of it. I'll make my prediction but I'll focus on what I think will be the usp of the new device. Of course it'll be more powerful but not as big a leap as many will hope.
Anyway I think the next nintendo console will be similar to the switch but with one main difference. And that would be that it'll get a folding screen. So for handheld gaming it'll have say for example a 4x6 inch screen. Which could be folded out to a 6x8 inch screen for tabletop play. TV play would be similar to what we have now except maybe it would have a 4K output.
@BloodNinja Also product scarcity tends to make people more likely to buy stuff if they’re actually able to find it… So if the number of Switches being produced + the Switches already made still manages to exceed the numbers previously sold, it’s going to see a bump in sales.
This is currently an industry-wide issue due to worldwide supply-chain problems, but Nintendo has been using artificial scarcity since their days of producing arcade machines in order to boost sales. I dunno about Sony/Microsoft, I haven’t really looked into their histories before, but based on that Nintendo probably knows how to navigate this situation to their advantage and sales will likely remain strong.
Look at the PS5, a year after launched it's still hard to find in stores. Nintendo wouldn't want to be in Sony's shoes, it's unlikely a New Switch will be launched next year.
It would be a considerably dumb idea for Nintendo to release or even announce a new console. It's too early considering how well the Switch is still selling. Wait until sales actually slow down, then we'll talk.
@nocdaes there was never going to be a new console in 2022, thats way too early. They just said last year that the switch was halfway through its life, i’d be surprised if we get a new console any time before 2024
@HedgehogEngine well, I stand corrected.
Either way, NVIDIA isn't relying on Intel to manufacture their chips at the moment. Doubtful it will change since they're currently rivals.
@BloodNinja
"We can't make too many, which gives us reason not to lower the price. Please understand."
?
@Mario500
Bloodninja was just making a joke. Obviously the chip shortage is real but this is moreso Furukawa taking this opportunity to be savvy and attempt to create a bit of panic to induce more sales. It’s a slick little statement that he’s hoping might extend sales after the eventual holiday dip. Switch is almost 5 years old with no price cuts outside of the EU, this chip shortage will not incentivize Nintendo to consider any price cuts for the foreseeable future.
I see plenty of consoles on store shelves so if any of you guys are having issues, I suggest buying from Mexico, I don't know about import fees but via exchange rate should be more or less the same, there's tons of PS5 and Xbox's here, so no need to buy from scalpers
@HedgehogEngine yes, they are competitors to each other. NVIDIA builds CPUs for auto industry, Intel is competing to gain marketshare. They compete for server customers with Linux and UNIX based machines for business and industry.
On the consumer side, Intel's newly announced GPUs are the first time we'll see the competition. If you do a Google search, NVIDIA and Intel are listed as each other's competitors.
NVIDIA is using Linux for their SOCs, which they demoed earlier this year. NVIDIA has big ambitions to challenge not just AMD, but Intel and Microsoft collectively. Probably a big reason why they've expanded their deal with Nintendo as their SOC provider, along with aiding in hardware design of future products.
https://www.reuters.com/technology/nvidia-directly-challenge-intel-with-arm-based-grace-server-chip-2021-04-12/
https://www.extremetech.com/gaming/324855-nvidias-arm-powered-linux-rtx-demo-is-a-warning-shot-to-x86-microsoft
I’m not in that big of a hurry, but I have checked about once a week at my work for an oled switch and still haven’t picked one up…
I’ll be getting it no matter before summer since some my gaming moves outside as well.
@NinjaGuy69 the switch doesn't have an SSD to make faster it has an emmc & then a slot for a micro SD card
@AstroTheGamosian my son plays his switch off the dock almost every single time he plays it .. not sure why but he loves playing it like a handheld ans always has it in the car
@soupwoman Yep, I believe that too, but Nintendo's plans have clearly had to change. The OLED model was never planned with its current spec - and there are already a LOT of games in development that would have had a higher spec in mind: BotW2, Splatoon 3, Bayonetta 3, Metroid Prime 4 - potentially even Arceus and Kirby originally at least.
Will Nintendo simply abandon the 4K? If BotW2 is being built with 4K in mind, then they will not want to release it without the right hardware in place. If there's no Switch revision in 2022, then I cannot see there being a BotW2 release either - what would the incentive be to upgrade in 2023/2024? It didn't work well for Sony with PS4/Pro after all.
@The_Top_Loader And that's what makes the Switch so great: it's versatile. There are so many ways you can play it, it's mind-boggling.
@nocdaes true yeah, I don’t think a totally new console is anywhere in the future, but I agree that the OLED was probably supposed to be a more powerful revision. I guess it’s still possible that they release an upgraded switch soon, but that chip shortage is really doing a number on them.
They will always down play this with supply issues what else is new? A new system will be out regardless of what people says. It's 5 years going and OLED isn't going to suffice games that need demanding GPU now that are coming out. The Switch will go 4k/DLSS Docked to keep with the demand. That's the part people miss out on it's coming they can't keep using outdate GPU to keep people coming back for more.
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