The revolutionary hybrid docked and portable console, Nintendo Switch, is still in high demand since its 2017 release, but it is now reportedly expecting a slight decline in sales. According to Nikkei Asia, a "semiconductor shortage" as well as "disruptions to logistics networks" are to blame for the expected 10% decrease from last year's Nintendo Switch sales.
The global supply chain issues are still causing delays in manufacturing for many different industries all over the world, and the video game industry is no exception. Nintendo, along with other major video game companies, are facing difficulties with hardware production in order to meet the demand of eager fans that want to get their hands on the newest and best gaming consoles on the market.
With massive AAA titles like Xenoblade Chronicles 3 coming later this year and the highly anticipated sequel to The Legend of Zelda: Breath of the Wild coming in Spring of 2023, the demand for the Nintendo Switch is expected to be higher than ever over the next twelve months. A 10% decrease in sales does not seem like a substantial factor for a massive corporation like Nintendo, but this number doesn't tell the whole story about the supply chain's lasting effects on video game manufacturing. Nintendo expects to sell 20 million Switch consoles in 2022, which is a full 30% decrease from the over 28 million units that the company sold in 2020.
Of course, the world of video games has never been more digital than it is right now. Online game stores, downloadable content, online multiplayer, and a plethora of other digital and online features make it much easier for companies like Nintendo to offset low hardware sales with higher software sales. Nintendo will surely take advantage of different types of sales, marketing strategies, and promotions over the next year in order to make up for the loss in Switch console sales.
Recessions, supply chain shortages, and many other issues have come and gone, but major video game companies like Nintendo have endured and thrived through it all. The video game industry is unique in that it does not have too much of a reliance on hardware sales to stay afloat, so this year's supply chain issues could also prove to be a mere bump in the road.
It is true that fans will be upset about Nintendo's manufacturing not being able to keep up with the demand for Switch consoles, but the supply chain issues will not last forever, and an expected 10% decrease in sales should not have too much of a lasting impact on the console market - especially if the spirit of competition in the console wars continues.
Source: Nintendolife