By Sherif Saed,
Tuesday May 12, 2020 10:08 GMT
Nintendo Switch's supply issues don't seem to end anytime soon.
Nintendo is once again facing bottlenecks in the manufacturing process that prevent it from producing the amount of Switch units you want.
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This is according to a Bloomberg report, which reveals that blockades in Malaysia and the Philippines are slowing production. Nintendo relies on a factory in Malaysia to print printed circuit boards (PCBs), while another in the Philippines connects passive components to cards.
Although Nintendo initially took advantage of not centralizing all of its production in China, this move is hurting its production capacity now that China has reopened when many Asian countries have not.
"Inventories could recover during the summer, but we may again experience shortages towards the end of the year, as Nintendo would not be able to produce enough units for the purchasing season, "Hideki Yasuda, an analyst at the Ace Research Institute, told publication.
Nintendo has struggled with Switch's stock-out since the start of the year. Although the company would have increased production to compensate, shortages of components prevent it from reaching its full capacity.
In its latest earnings report, the company recognized this, planning to sell 19 million units in fiscal 2020, a decrease of 21.03 million a year. previous, despite the growing popularity of Switch.
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