Nintendo is reportedly making 20 percent fewer Switches due to the chip shortage

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The global chip shortage is spreading across all areas of technology, and its throttle on electronics doesn’t seem to be abating any time soon. Nintendo is just one brand that is still suffering from shortages, according to a report from Nikki Asia He reveals that Nintendo is cutting the number of switches it’s producing further and falling short of original expectations by 20 percent.

While Nintendo insists that the lack of the chip has not caused the Switch OLED to lose 4K video support, the pressure could prevent the company from meeting its updated expectations. Nikki Asia Reports suggest that instead of producing the 30 million Switch it initially planned, Nintendo will only pay 24 million units by the end of March, down from the 25.5 million number it gave investors in May. In a brief statement, a Nintendo spokesperson said Nikki Asia They are aware of the shortage of semiconductors, and are evaluating the “impact” on their production.

as Nikki Asia He notes, that the Switch saw a 37 percent drop in sales in September compared to the same period last year. The demand for switches increased rapidly during the midst of the COVID-19 pandemic, as people searched for ways to stay occupied while staying at home. The Switch held the spot as the best-selling console in the US from 2019 to early 2021, only to be overtaken by PS5, which sold fewer Switch units but made more money.

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It also doesn’t help that Nintendo just released an OLED Switch model in October — a slightly upgraded version of the Switch that comes with a better display and more storage. A newer model usually means more demand, which is probably something Nintendo should have considered before launching the Switch OLED during a chips shortage.

Scalpers have already bought and tried to resell Switch OLED pre-orders for sky-high prices, so it wouldn’t be surprising if they target the remainder of Switch inventory in the coming months. After all, speculators have already taken advantage of the chip shortage, digging their greedy claws into the Xbox One X and PlayStation 5 — Switch OLED might be their next feast.

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