TOKYO – Nintendo will increase the output of the Switch to about 30 million units this fiscal year, Nikkei has learned, which is the all-time high for flagship gaming devices in a bid to capitalize on home demand like Continuous
Kyoto-based company contacts several parts suppliers about speeding up production. People with direct knowledge of the matter have examined plans to expand productivity.
Nintendo is taking an unusual step for devices that are already five years old, the strategy will have to contend with a number of new rival offerings that appeared in the last year.
Since its global launch in 2017, the Switch has sold about 80 million units at the end of 2020, combined with the projected total for this fiscal year, the device sales will reach 110 million units, eclipsing the amount that Wii consoles can achieve.
Additionally, Nintendo will launch a next-gen Switch capable of better graphics. This will be the first offer since the 2019 edition of the Nintendo Switch Lite.
In the last fiscal year through March 31, homeland demand was driven by the burgeoning blockbuster sales of the social game “Animal Crossing: New Horizons” and the new “Monster Hunter” title.
It looks like Nintendo will break a new gross profit record for fiscal year 2020.The earnings report will reflect fiscal 2007 results when the company released two popular devices, the Wii and the DS.
Another driver of the Switch’s strong performance is Nintendo Switch Online’s paid subscription service.The platform allows people to match with each other and play games, and their subscriber count has more than doubled in one year – 26 million people. September last year
However, a global chip shortage has hit the digital devices and automotive industry, Nintendo President Shuntaro Furukawa said in February that it had supplied enough components now. But does not rule out future problems
“We also experienced higher-than-expected demand this year, and there is a possibility that some products will be in short supply, especially in Japan,” Furukawa said.
Meanwhile, the Switch is competing with Sony’s lineup of PlayStation 5, which was released in November of last year and is loaded with high-performance chips. The console comes with an online service with more than 47 million paid subscribers. Microsoft released the Xbox Series X that same month.
The rise of mobile games and cloud gaming poses some challenges too. Still, the Switch remains competitive in its fifth year in the market.
“The switch can function as both a console and a portable device, so it can be fully deployed in the home environment,” said Hideki Yasuda, senior analyst at the ACE Research Institute.