Why is the Nintendo Switch facing a global shortage in stock?

Nintendo certainly have big plans as they continue to build on the success of their convertible console, the Switch. Of course, they announced the launch of the cheaper, non-modular Switch Lite last year, and more recently, a new instalment in the popular Animal Crossing game franchise—along with a custom-themed Switch.

Unfortunately, it looks like fans and potential customers of the Nintendo Switch are set to face disappointment in the months ahead, with sources close to the matter revealing that the outbreak of COVID-19 could cause a shortage in global stocks. According to Bloomberg, the Japanese company’s assembly at a factory in Vietnam has been affected by a shortage in components coming out of China—this particular factory is expected to affect Switch consoles arriving in April.

That means that customers in the U.S. probably won’t have too much trouble finding a unit for sale in February and March, but once existing inventory is finished, there could be a major shortage in the American market. That’s certainly not good news for Nintendo, with their financials showing that the U.S. is the company’s biggest market at 43% of its core business.

But the issue isn’t just affecting the U.S. Earlier, Nintendo explained that shipments for the Switch to Japan are expected to be delayed due to the coronavirus outbreak. This also applies to peripherals like Joy-Cons and even accessories for the Ring Fit Adventure game—ironically, the outbreak reportedly increased the popularity of the exercise-based game.

At the time, Nintendo explained to Bloomberg that a workaround would be to route shipments from factories instead—now, it seems that is no longer an option.

For now, it appears that the shortage is only affecting Japan and the U.S., although it seems logical that other markets will also begin to feel the effects of the COVID-19 outbreak on the manufacturing sector. In fact, Apple has issued a warning to investors that there could be a shortage of the latest iPhones due to the outbreak—the iPhone 11 is a major revenue driver for Apple.

[ SOURCE , 2 ]

Related reading