Nintendo Switch Production Ramp Up Fights Component Shortage
With demand for Nintendo Switch continuing to outpace supply, Nintendo has reportedly ramped up production to create 20 million consoles before March 2018.
However, The Wall Street Journal adds that this has resulted in Nintendo competing for components as there is an industry-wide capacity shortage relating to parts used in smartphones, computer servers and similar devices.
That specifically means that there is a shortage around NAND flash memory chips that store data, liquid-crystal displays and the motors that are used to generate HD Rumble in the Joy-Con.
The rapid expansion of web-based services and the continued demand for Apple’s iPhone devices, with which smartphone makers place higher orders, mean that it will be harder for Nintendo to secure the components that they require.
They could increase spending to secure more parts, but that would impact productions costs and see each Nintendo Switch console sold at a loss. Therefore, with production limited, Nintendo may choose to ship consoles by air worldwide later in the year.