Nintendo warns of more semiconductor-related Switch shortages for 2022

‘We have not seen signs of any major changes since we entered 2022’

More Nintendo Switch shortages could happen throughout 2022, as the company president has brought expectations back in check recently via a new Q&A.

Speaking to investors, Nintendo boss Shuntaro Furukawa gives everyone the good news first. Despite overwhelming odds, Nintendo was able to meet the demand of the first half of 2021 “throughout the world.” But when October hit, things got much dicier.

Furukawa states that when entering that holiday season period, sales increased, which impacted stock in various parts of the world. He’s referring of course to the very public scarcity of the Switch in Japan and Europe, which extended primarily to the OLED model during that time period. He also explains that US shortages happened later in 2021, from the third week in November on through December: a situation that has not let up coming into 2022.

So is there hope for overcoming Nintendo Switch shortages globally? Well, not really, according to this response from Furukawa:

“Since the start of this fiscal year, we have said that the outlook is uncertain due to the shortages of semiconductors and other components. We have not seen signs of any major changes since we entered 2022, so the situation remains the same.”

Later on in the Q&A, Furukawa sheds a bit more light on the situation, saying that component shortages have been eating into the company’s gross profit. In short, he’s prepping investors early, even going so far as to state that ” [the] Nintendo Switch OLED Model has a lower profit margin than Nintendo Switch and Nintendo Switch Lite.” Unless there are “drastic” changes, profits will not improve during the course of the next fiscal year “and beyond.”

Setting expectations is something Furukawa has been doing for a long while now, even before 2022 began. And while there was a chance that things could turn a corner with the new year, it doesn’t seem to be in the cards.