Nintendo struggles to produce Switch components due to stagnation in the Asian market

It sounds like the supply problem of Nintendo Switch will not disappear soon.

Nintendo once again faced a bottleneck in the manufacturing process, which prevented it from producing a large number of products. switch The desired unit.

According to a report by Bloomberg, the report shows that the shutdown in Malaysia and the Philippines is slowing production. Nintendo relies on a factory in Malaysia for printed circuit boards (PCB), while another factory in the Philippines connects passive components to circuit boards.

Although Nintendo never benefited from initially concentrating all of its production in China, this decision is hurting its production capacity because China has reopened and many Asian countries have not yet opened.

Aki Research Institute analyst Hideki Yasuda said: "Inventory may be restored in the summer, but because Nintendo will not be able to produce enough products during the shopping season, we may have another shortage by the end of the year.

Since the beginning of this year, Nintendo has been facing a shortage of Switch inventory. Although the company reportedly increased production to make up for the losses, the shortage of these parts prevented it from reaching full production.

The company realized this in its latest earnings report. Despite the increasing popularity of the Switch, the company predicts sales of 19 million units in fiscal 2020, down from 21.03 million units in the previous year.