The company has reportedly told suppliers and retailers that it will be manufacturing from Switch units in the next fiscal year than previously anticipated.
When Nintendo released its quarterly financial documents last November, the company confirmed that it expects 19 million units of the Switch to be sold in the ongoing financial year (until March 31, 2023), with a number of factors’ n contribute to the lower projections. Not only is the Switch entering the seventh year of its life cycle in March, the past few years have also seen a global shortage of semiconductor chips hampering large-scale hardware manufacturing.
It seems, however, that Nintendo is now predicting a boost in sales of the console for the upcoming financial year, which runs from April 1, 2023 to March 31, 2024. According to a report published by Bloombergwith semiconductor chips now seeing severe shortages (resulting in supply improvements for other companies as well), Nintendo is said to be expecting to sell more units of the Switch than in the ongoing financial year.
The Japanese company has reportedly notified suppliers and partners that it will accelerate manufacturing and production plans for the console starting in April. Contrary to analysts’ expectations, Nintendo is said to expect “sustained demand” for the Switch for “at least another year”, and believes the recent slump in sales has been driven more by supply issues than a drop in the demand.
That said, the company is said to have not made clear what its revised target for Switch sales will be in the coming financial year, and could continue to lower the projected numbers again if demand fails to meet expectations.
Interestingly, Toyo Securities analyst Hideki Yasuda also believes that should Nintendo release Zelda-A Switch theme to accompany a highly anticipated launch The Legend of Zelda: Tears of the Realm, it could lead to existing Switch owners buying another unit of the console. According to recent leaks, it seems that is indeed what Nintendo is planning.
Of course, with the Switch approaching its sixth birthday on March 3rd, common wisdom would suggest that the system is very much in the final leg of its life cycle, which in turn would suggest that Nintendo is in the works behind the scenes on a new console. Reports have claimed that that is true, and that the above Zelda the title may well be Nintendo’s last major release on the Switch. Meanwhile, analysts believe the Switch’s successor won’t launch until 2024.