Nintendo may ramp up Switch console production this year

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The semiconductor shortage of the past few years has significantly hindered production for all big players in the tech industry. Gaming giant Nintendo had also dialled down its production of Switch consoles. However, now with the chip crisis on the wane, the company is readying itself to boost Nintendo Switch production, as per a Bloomberg report.
The report states that, back in November, Nintendo had decreased its sales projection for Switch consoles. However, there may have been a change in the Japanese firm’s plans as it now prepares to boost manufacturing instead.

Nintendo expects demand for Switch to stay strong another year
The six-year-old device may be in its twilight years but sales of around 21 million units, during FY 2022-23, have apparently given assurance to Nintendo. The company reportedly expects the demand for Switch to stay strong for at least another year. In fact, insider information claims that the Mario creator has intimated to suppliers of its plans to increase production – although there’s no specific target at the moment.
Despite a clear intention to ramp up manufacturing, a change down the middle isn’t out of the question either and will depend on buying trends among gamers.

Analysts don’t see a sustained demand for Switch, expect sales to dwindle
Given the console’s ageing hardware, analysts don’t rate its appeal to stay intact throughout the year. The report cites USB Securities analyst Kenji Fukuyama saying, “Sales in the recent holiday season were not that strong even with improved supply.” He added, “People will soon start speculating about next-generation hardware and are likely to refrain from buying the old system. A slowdown in Switch sales momentum is unavoidable.”
Hideki Yasuda, Toyo Securities analyst, noted that trying what worked in the past would help Nintendo improve sales. Last year, the firm rolled out a special ‘Splatoon 3’-themed Nintendo Switch and attracted more buyers. According to Yasuda, a special edition themed around ‘Legend of Zelda’ – whose highly anticipated sequel ‘Legend of Zelda: Tears of the Kingdom’ is set to release in March – would improve sales.

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