Nintendo said that the component shortage may affect Switch sales

In terms of sales, Nintendo Switch is really very successful and has become the best-selling game console for two consecutive years. Even as a game console popular among gamers, it’s not easy to continue to sell for such a long time. According to a report from TomsHardware, Nintendo told investors that sales of Nintendo Switch game consoles are expected to decline in the fiscal year 2022, partly due to the component shortage in the global semiconductor industry.

“Nintedo Switch Joy-Con Set” by brettchalupa is licensed under CC BY 2.0

Nintendo says: “the production of products might be affected by obstacles to the procurement of parts, including the increase in global demand for semiconductor components.” Nintendo Switch uses NVIDIA Tegra X1. This SoC was first manufactured using a 20nm process and later changed to a 16nm process.

Nintendo is likely to release an upgraded version of the Nintendo Switch game console in the near future, which will be equipped with Samsung’s 7-inch OLED screen, equipped with Nvidia’s new SoC to further improve performance, support DLSS technology, and achieve 4K output.

I don’t know whether the recent shortage of various chips and components will affect the release of new products. For example, once a new process node (10nm or below process) is used, it is likely to face competition with other manufacturers for production capacity. Since the outbreak of the coronavirus epidemic, the entire game product has been driven. Nintendo Switch, Sony PlayStation 5, and Microsoft Xbox Series X/S have sold very well, and they are also facing the same supply shortage.