Nintendo Looking To ‘Substitute Components And tweak Designs’ To Tackle Chip Shortage

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Nintendo Co. Ltd on Friday revealed that the global chip shortage, which had already forced the company to downscale its expected sales for the much-loved Switch device, is also hindering hardware development.

“The semiconductor situation is having some effect on hardware development. We are looking at substituting components and tweaking designs to try and reduce the impact,” said Nintendo executive Mr. Ko Shiota.

If you have been out of the loop, the world is suffering from a shortage of semiconductors at the moment. This issue has affected various tech-reliant industries across the globe including the automobile, consumer electronics (Smartphones, Laptops, gaming consoles, Televisions), home appliances, and more.

In a statement given to CNBC last month, Intel CEO Pat Gelsinger has speculated that the global chip shortage will likely linger for a lot longer. He said that he expects the shortage to extend at least until 2023.

Nintendo Looking To ‘Substitute Components And tweak Designs’ To Tackle Chip Shortage 1

This announcement comes a day after the company president Mr. Shuntaro Furukawa stated that the chip shortage shows no sign of easing up, and it has forced the company to cut down on its annual sales forecast of the Nintendo Switch by 6%.

Mr. Furukawa also revealed that the company is struggling to meet the increased demand in the year-end holiday shopping season as chip shortages interrupt production.

The gaming giant depends heavily on its console business, all the while deep-pocketed rivals such as Microsoft are expanding subscription and cloud gaming services. Nintendo on Friday further stated that “Nintendo plans to continue to expand its business around the core concept of creating unique integrated hardware-software products.”

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