- Nintendo plans to produce 10 million Switch 2 units in the first fiscal year to avoid shortages that plagued the previous launch.
- The company claims it has resolved the semi-conductor shortage issues.
- Nintendo aims to increase production and consider legal action against resellers to keep the Switch 2 affordable.
At Nintendo’s 84th Annual Shareholders’ Meeting, CEO Shuntaro Furukawa shared important updates about the upcoming Switch 2. The CEO addressed worries about resale and shortages, reassuring stakeholders that the company has learned from past mistakes and is taking steps to prevent them.
Earlier this year, Nintendo revealed its plans to ship 10 million units in the first year to ensure a successful launch and wide availability for consumers.
Why it matters: The original Switch was plagued with scarcity issues during its launch and was resold at double the price. Nintendo aims to fix that problem, with the successor reportedly launching in 2025.
Nintendo is adjusting its strategy in response to supply issues faced by Sony and Microsoft with the PS5 and Xbox Series X/S. The global chip crisis during the COVID-19 pandemic mainly caused these shortages.
Nintendo is learning from these challenges and implementing proactive measures to avoid similar issues. Recently, the company has also struggled with Switch production because of semi-conductor shortages—a global problem that hindered meeting high consumer demand.
CEO Furukawa reassured investors that this challenge has been resolved and won’t affect the production of the upcoming hardware. The company’s main approach is to ramp up production sufficiently to prevent the upcoming console from being resold at a higher price.
Furukawa highlighted the importance of balancing production with customer demand to achieve this goal.
By ensuring enough units are available, Nintendo aims to reduce the impact of the resale market.
Alongside boosting production, the gaming giant is also looking into legal actions against resale. Furukawa noted that the company is exploring different legal strategies tailored to each region to effectively tackle the resale problem.
The gaming giant is expected to announce the Switch 2 sometime this fiscal year. This handheld console could be priced at $399, according to various reports. The gaming community anticipates this announcement, and with Nintendo taking proactive steps, there are high expectations for a smooth launch.
Moreover, the gaming giant has confirmed that it will continue supporting the current generation after the new model launches. This means ongoing third-party support and games that work on both systems so existing customers won’t miss out.
Exciting upcoming releases like Metroid Prime 4 are expected to be available on both consoles, helping to transition smoothly between them.
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