TOKYO – Nintendo will increase Switch production to about 30 million units this fiscal year, Nikkei has learned, setting an all-time record for the leading gaming device in an attempt to take advantage of ongoing demand at home.
The Kyoto-based company has approached a number of parts suppliers to speed up production. People with direct knowledge of the issue checked their plans to expand production.
Nintendo is taking an unusual step for a device that is already in its fifth year of existence. The strategy will have to compete with a number of new competitive proposals that have emerged in the last year.
Since its global debut in 201
In addition, Nintendo will release a subsequent Switch model capable of better graphics. This will be the first such proposal since the launch of the Nintendo Switch Lite in 2019.
In the previous fiscal year, until March 31, the demand to stay at home was caused by the pandemic-powered blockbusters of the social game “Animal Crossing: New Horizons” and the new title “Monster Hunter”.
Nintendo appears to have broken a new consolidated record for fiscal 2020. Such a revenue statement will reflect the results of fiscal 2007, when the company released its two hit devices, the Wii and DS.
Another engine of stable performance of the Switch is the paid subscription service Nintendo Switch Online. The platform allows people to pair with each other and play, and the number of subscribers has more than doubled in one year – 26 million as of September last year.
However, the global shortage of chips has put pressure on digital devices and the automotive industry. Nintendo President Shuntaro Furukawa said in February that the company had so far secured adequate component supplies, but did not rule out future problems.
“And this year we had higher-than-expected demand, and some products are likely to be in short supply, especially in Japan,” Furukawa said.
Meanwhile, the Switch competes with Sony’s PlayStation 5, which was released last November and is loaded with high-performance chips. The console comes with an online service that has over 47 million paid subscribers. Microsoft released its Xbox Series X the same month.
The rise of mobile and cloud games is also a challenge. Still, the Switch managed to stay competitive in its fifth year on the market.
“The switch can act as both a console and a portable device, so it has lived fully in a home environment,” said Hideki Yasuda, a senior analyst at the Ace Research Institute.