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Nikkei: Nintendo will reduce global Switch production by 20% due to chip shortage

XXL

Member

Japanese news publication The Nikkei says that Nintendo has had to revise its production of the Nintendo Switch family of systems and will produce 20% less units than it originally intended due to the on-going global chip shortage caused by the pandemic.
 

Bernd Lauert

Gold Member
you definitely will get mid gen referesh especially from xbox, it's all about copying the mobile refresh cylce
Come Here Lets Go GIF by The Late Late Show with James Corden
 

Kataploom

Member
you definitely will get mid gen referesh especially from xbox, it's all about copying the mobile refresh cylce
Mobile industry ditch previous gen models once new ones are out, I don't think this will happen unless it's a correction on their systems ala X360... But I'm not it won't definitely happen, it's just that I see it very unplausible tbh, this situation is here to stay for a while
 

reksveks

Member
Mobile industry ditch previous gen models once new ones are out, I don't think this will happen unless it's a correction on their systems ala X360... But I'm not it won't definitely happen, it's just that I see it very unplausible tbh, this situation is here to stay for a while
Mobile companies don't dismiss the previous gen immediately especially on software (and it's slightly different given xcloud). What do you think they ditch?
 

Kataploom

Member
Mobile companies don't dismiss the previous gen immediately especially on software (and it's slightly different given xcloud). What do you think they ditch?
They stop making the previous models in favor of new ones, some (not all) keep delivering updates but that's it. That's what I don't think they'll do with consoles unless for complete revisionist models like new PS5 now or X360 back in the time
 

reksveks

Member
They stop making the previous models in favor of new ones, some (not all) keep delivering updates but that's it. That's what I don't think they'll do with consoles unless for complete revisionist models like new PS5 now or X360 back in the time
Not sure that's true for all mobile OEM's afaik; Apple are still making iPhone 12's.

We are all speculating here but I think we will see a new xbox gen in 2023 or 2024.
 

00_Zer0

Member
I realize that Tegra is not the only component in Switch, but Tegra chips will eventually run out anyway, no? I don't think that Nvidia are making anymore of those are they? So before that happens Nintendo will eventually be forced to get a Switch 2 model out there with a whole new chipset.
 

Kataploom

Member
Not sure that's true for all mobile OEM's afaik; Apple are still making iPhone 12's.

We are all speculating here but I think we will see a new xbox gen in 2023 or 2024.
Apple are the only ones I see still making old models, maybe due to the premium feature of their brand, they want lower cost phones on the market too, but I always see Samsung and other brands only selling old models until they're sold out and then it's only the new models till a new one comes out
 
Not unwise. Helps when your install base is hovering around 80m rather than just getting started (will be of immense interest to see what Sony reports for Q4).

Companies are in a feverish bidding war for available components and the price is only going to creep higher.
 

reksveks

Member
Apple are the only ones I see still making old models, maybe due to the premium feature of their brand, they want lower cost phones on the market too, but I always see Samsung and other brands only selling old models until they're sold out and then it's only the new models till a new one comes out
Samsung basically has their low end range so it's a bit weird. I don't think Microsoft will produce Series X (2020) at the same time as the new one (2023) but I can see them supporting it with native games.

But let's see.
 

CuNi

Member
Welp, wanted to buy a switch on black Friday for 250€ or below. With those news I don't see the price dropping but instead going up. Guess I'll pass on switch then or wait another year. I'm sorry Metroid Dread, but Nintendo doesn't want me to play you.
 
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KungFucius

Member
I am sure this means there will be a rebalancing of products. I.e. cancel the standard and produce less Lites to keep revenue balanced for system sales.
 

reksveks

Member
New version of mobile phones release every year.

Consoles are far from that.
You kinda of focusing too much on the details but typically consumers used to have a 2 year upgrade cycle on phones. This isn't probably possible for consoles but 3/4 years definitely is.
 

AGRacing

Member
I'm seeing a lot of OLED switch models on the shelf in Canada... not a difficult console to aquire...which I didn't expect.

I think there's more to this.
 

Ezekiel_

Member
You kinda of focusing too much on the details but typically consumers used to have a 2 year upgrade cycle on phones. This isn't probably possible for consoles but 3/4 years definitely is.
I find it hard to believe.

The whole point of the PS4 Pro was the advent of 4k TV's. Their whole presentation was based around their checkerboard upscaling technique.

What would justify a PS5 Pro? The current gen consoles already support 8k and 120 FPS. Will it really be worth it to make a Pro model and ask developers to support that upper tier with even better graphics.

With the chip shortage likely to last 2 more years, why invest in that R&D? The ROI won't be worth it.

I think the slim model(s) will be enough.

For Xbox, it makes even less sense : they have the Series S to support for the whole gen + the Series X, and now they'll have a third model, splitting their production lines even more?
 

RoboFu

One of the green rats
It would be interesting to know hii oh w much the manufacturing cost have gone up to make a switch or ps5.
 

reksveks

Member
the Series X, and now they'll have a third model, splitting their production lines even more
as mentioned in another comment, they won't split the production lines.

What would justify a PS5 Pro? The current gen consoles already support 8k and 120 FPS. Will it really be worth it to make a Pro model and ask developers to support that upper tier with even better graphics.
companies try to find a reason to upsell you on anything new that they can see 3d tv's. might be vr, might be some from of ai upscaling, if they are stupid might be raytracing (stupid only in the sense that it isn't marketable).
 

kiphalfton

Member
I wonder if they know that they are close to saturating the market.

Nintendo is the king at faking stock issues, to increase interest. Sounds stupid and counterintuitive, but then what ends up happening is people find out something is scarce and then all of a sudden said item becomes sought after and may even sell out.
 

FStubbs

Member
I realize that Tegra is not the only component in Switch, but Tegra chips will eventually run out anyway, no? I don't think that Nvidia are making anymore of those are they? So before that happens Nintendo will eventually be forced to get a Switch 2 model out there with a whole new chipset.
I doubt nVidia had 100 million unsold Tegras laying around to begin with.
 

McCheese

Member
And people still wondering where's the "Switch Pro"? Heck, I don't even think we'll have PS/Xbox pro versions this gen for the same reason...

Don't the refreshed systems often compress things down to fewer chips? If anything I expect the chip shortage to increase the number of hardware revisions as they spend more R&D on trying to lower manufacturing costs.

Aluminium and Copper prices rocketed this year (up 46% from January!) - then Sony snuck out that new PS5 model with a considerably shrunk heat pipe, I think we'll see a lot more SKUs and revisions due to this pricing cat-and-mouse game in a volatile market, at the economy of scale these guys work at it's a no-brainer to spend more on R&D and retooling production if it saves a few $ on every system produced. I would expect both Xbox and PS5 to have a major refresh in the next 12 months to reduce the size and weight further and consolidate the onboard chipsets into fewer SoC dies, but not marketed as a "mini" system due to them having no real benefit to end-users other than being lighter and consuming less power, they sure as hell won't be cheaper to buy.
 
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Rat Rage

Member
I don't think much will change. They'll probaby just reduce the manufacturing of the Switch Lite and OG Switch a bit.
 
Honestly it’s kind of expected at this point. Switch won’t keep selling more and more forever, they need to focus on a new console soon too.

24 million is still a ton.
 
24m is still ridiculous though. switch will have sold more than PS4 when its all said and done. will it catch PS2? no chance in hell.
 

MrA

Member
24m is still ridiculous though. switch will have sold more than PS4 when its all said and done. will it catch PS2? no chance in hell.
if it sells 24 million next year that's going to be like 128 million switches sold, if it can have a slow decline 18-12-6-1 it will blow past the ps2,
if it drops like the wii- 14-6-3-1, then it will be a close call, if it implodes a-la the ps4 (though given the ps4 was probably killed early due to limited manufacturing so it is a special case) -9-4-1- it will take a comfortable 3rd

It's been a year now, and I still haven't seen a regular PS5 for sale. Ever.
well, slightly lower supply with similar demand makes for really tight spot, doesn't help units aren't being sent to stores in any meaningful number, don't misconstrue this as scalpers are buying most units (even if they were they are still be sold to users) but the online-only basically requires people that want them to be on patrol as scalpers will mop up anything left.
 

McRazzle

Member
It's not the chip shortage, it's lower demand.
The Switch is already being outsold in the US and Europe by the PS5, and will probably be outsold by Xbox S/X this holiday season.

It reminds me of what happened with the PS3 in the Wii's fourth year.
 

Kerotan

Member
And people still wondering where's the "Switch Pro"? Heck, I don't even think we'll have PS/Xbox pro versions this gen for the same reason...
We will. There's no rush with a ps5 Pro. They could launch in 2025 or 26 and coincide with gta 6. It will just extend the gen and allow the ps6 to have some meaningful upgrades over the ps5. 2030 launch for the ps6.
 

KungFucius

Member
It's not the chip shortage, it's lower demand.
The Switch is already being outsold in the US and Europe by the PS5, and will probably be outsold by Xbox S/X this holiday season.

It reminds me of what happened with the PS3 in the Wii's fourth year.
There was 1 month where the PS5 outdid the Switch and that was September, i.e. the month before the launch of the OLED. It is very likely that 1 data point you are trying to extract a trend from is explained by that. Even if it isn't, more data is required
 
It's not the chip shortage, it's lower demand.
The Switch is already being outsold in the US and Europe by the PS5, and will probably be outsold by Xbox S/X this holiday season.

It reminds me of what happened with the PS3 in the Wii's fourth year.
Post saved… See you in a few months.
 

TLZ

Member
Lowering Switch production to give way for nextgen Switch production confirmed?
 
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if it sells 24 million next year that's going to be like 128 million switches sold, if it can have a slow decline 18-12-6-1 it will blow past the ps2,
if it drops like the wii- 14-6-3-1, then it will be a close call, if it implodes a-la the ps4 (though given the ps4 was probably killed early due to limited manufacturing so it is a special case) -9-4-1- it will take a comfortable 3rd

I think it will drop off too much to reach PS2.
 
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