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oracion

Member
Jan 7, 2018
695
Tokyo
Nintendo Is Likely to Suffer Global Switch Shortages From Virus

Nintendo Co. is likely to struggle to supply sufficient Switch consoles to its U.S. and European markets as soon as April due to a production bottleneck caused by the coronavirus outbreak, according to people with knowledge of the company's supply chain.
Limited component supply coming out of China is affecting output at a Nintendo assembly partner's factory in Vietnam, which the gaming giant primarily uses to build consoles for the U.S., said the people, asking not to be named because the details are private. A shortage of components this month would affect Switch units scheduled for arrival in April, after existing inventory and current shipments of the console have sold through.
Switch shipments arriving into the U.S. in February and March won't pose any issue because they've already been dispatched from Asia, said the people familiar with Nintendo's operations. But difficulty may arise with accumulating enough units for the boats departing later this month or next, which would be arriving in the U.S. in April. Shipments would not completely stop, but would be greatly reduced, according to one person.
 

Mandos

Member
Nov 27, 2017
30,891
I mean they'll still get units out at least. The other guys could see their launches heavily effected
 

RoninStrife

Banned
Oct 27, 2017
4,002
I really hope we find a cure for this. Not just for the console generations, and video game related reasons, but before this potentially mutates into something more dangerous. I get this massive MH370 feeling from it all, we have thousands of satellites circlingtl the earth, nations spying on each other and yet in the modern world, we lose a plane.

We're certainly not as smart as we think we are, when a virus like this has blindsided civilization in 2020.
 

Camp1nCarl

Member
Oct 25, 2017
1,135
Probably have better insight regarding this once Nintendo's briefing their Q1 earnings and/or if they'll have revised Q2 expectations from this.
 

slothrop

▲ Legend ▲
Member
Aug 28, 2019
3,876
USA
The entirety of electronics and toys industries will be having supply issues in coming months. It's not going to be pretty.
 

Strings

Member
Oct 27, 2017
31,384
This really sucks for Nintendo. They've basically got this entire year to throw up big numbers before the competition comes roaring back with new products, and blagh, shortages.
 

Deleted member 49535

User requested account closure
Banned
Nov 10, 2018
2,825
This really sucks for Nintendo. They've basically got this entire year to throw up big numbers before the competition comes roaring back with new products, and blagh, shortages.
This sucks for everyone, really. I'm starting to think we might not see the new consoles until next year if this goes on for too long.
 
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Goldenh

Member
Feb 9, 2020
1,387
We'll see how the situation evolves, seems like Nintendo had a pretty big margin compare to ship/sold through last quarter.
 

NateDrake

Member
Oct 24, 2017
7,497
As of the end of 2019, Nintendo shipped 52.4m Switch units and sold 48m. Shortages happening post-AC release does seem within the realm of possibility.
 

Le Dude

Member
May 16, 2018
4,709
USA
This really sucks for Nintendo. They've basically got this entire year to throw up big numbers before the competition comes roaring back with new products, and blagh, shortages.
Not really?

Other consoles' supply chains will be affected as well, and rumor has it they're going to be more expensive than originally planned. Those two things could slow next-gen adoption. With shortages Nintendo likely won't price drop this year, and if that's the case it wouldn't shock me if 2021 is Switch's peak year (some of the things things we may see next year are a price drop, new 3D Mario, BOTW2, rumored pro model, new 2D Mario, new Mario Kart, etc . . .)
 
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MegaXZero

One Winged Slayer
Member
Jun 21, 2018
5,079
Next gen is going to be affected in some fashion at this rate. Even if the coronavirus resolves soon the bottleneck is still going to be ridiculous.
 

IronTed

One Winged Slayer
Member
Jun 6, 2019
1,435
This sucks and will affect much more than Nintendo. Definitely not a good way to start the new FY.
 

Rodney McKay

Member
Oct 26, 2017
12,189
Feel lucky that I got an Animal Crossing Switch preorder when I did.

I've got a launch Switch, but I was starting to get sick of the bad battery and wanted a newer model.
 

Procheno

Alt Account
Banned
Nov 14, 2018
2,879
I dont think next gen consoles will be that affected if they begin production in the summer. Definitely by summer the disease will have probably already made the rounds and then some and most people will be recovered
 

SpaceCrystal

Banned
Apr 1, 2019
7,714
This really sucks for Nintendo. They've basically got this entire year to throw up big numbers before the competition comes roaring back with new products, and blagh, shortages.

I agree, though it's much worse for Microsoft & Sony since they have PS5 & Xbox Series X coming out.

If this continues, they'll have to delay both of them.
 
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Oct 25, 2017
12,588
Arizona
I really hope we find a cure for this. Not just for the console generations, and video game related reasons, but before this potentially mutates into something more dangerous. I get this massive MH370 feeling from it all, we have thousands of satellites circlingtl the earth, nations spying on each other and yet in the modern world, we lose a plane.

We're certainly not as smart as we think we are, when a virus like this has blindsided civilization in 2020.
No one had any reason to readjust their satellite to follow an insignificant object moving hundreds of miles an hour.
 

RoninStrife

Banned
Oct 27, 2017
4,002
User Warned: Conspiracy theorizing
No one had any reason to readjust their satellite to follow an insignificant object moving hundreds of miles an hour.
You know, theres lots of satellites monitoring and corresponding to undersea beacons to detect geographical phenomenon such as undersea earthquakes, changing in sea temperatures, etc etc. But none of them picked up on the plane. One beacon detected something, but Im not sure what resulted with that. At the end of the day, the stupidity of allowing all GPS equipment on a plane to be within reach of a pilot to manually disengage is dumb af. Humans are dumb.
 

antispin

Member
Oct 27, 2017
4,780
Hopefully, this unfortunate event will lead to diversification in production centers. All eggs in one basket is never a good thing.
 

Menx64

Member
Oct 30, 2017
5,774
Hopefully, this unfortunate event will lead to diversification in production centers. All eggs in one basket is never a good thing.
The problem is scale. China has the infrastructure and manpower for that type of industry, while other countries lack even the minimal infrastructure. Nintendo does assembly in Vietnam, but that don't mean Vietnam can take China's place.
 

Joni

Member
Oct 27, 2017
19,508
You know, theres lots of satellites monitoring and corresponding to undersea beacons to detect geographical phenomenon such as undersea earthquakes, changing in sea temperatures, etc etc. But none of them picked up on the plane.
If you make something to do A, it won't pick up Orange. That is how little those things have to do with each other. The Hubble telescope can detect things lightyears away, but we could nuke half the world and it probably wouldn't realize.
 

antispin

Member
Oct 27, 2017
4,780
The problem is scale. China has the infrastructure and manpower for that type of industry, while other countries lack even the minimal infrastructure. Nintendo does assembly in Vietnam, but that don't mean Vietnam can take China's place.

Agreed. But scale requires investment into a marketplace. I just hope companies explore other destinations and invest into them: Establish manufacturing/assembly centers elsewhere. Of course some resources will have to be imported into these potential countries, for example natural resources that are only available in China.
 

RoninStrife

Banned
Oct 27, 2017
4,002
If you make something to do A, it won't pick up Orange. That is how little those things have to do with each other. The Hubble telescope can detect things lightyears away, but we could nuke half the world and it probably wouldn't realize.
Except, the undersea beacons pick up on Whale movement, and undersea accoustics and I think one of them presumably detected a bang from a crash, or the sound of the plane sinking tothe sea bed(as they record whale and dolphin accoustics), it ended up being something else.
 

Jon Carter

Banned
Oct 27, 2017
5,746
I really hope we find a cure for this. Not just for the console generations, and video game related reasons, but before this potentially mutates into something more dangerous. I get this massive MH370 feeling from it all, we have thousands of satellites circlingtl the earth, nations spying on each other and yet in the modern world, we lose a plane.

We're certainly not as smart as we think we are, when a virus like this has blindsided civilization in 2020.

At the end of the day, we did manage to figure out the general area where it crashed, it's just that the ocean is huge and a plane is tiny. We still find stuff from 75 years ago down there.
 
Jun 23, 2019
6,446
Not really?

Other consoles' supply chains will be affected as well, and rumor has it they're going to be more expensive than originally planned. Those two things could slow next-gen adoption. With shortages Nintendo likely won't price drop this year, and if that's the case it wouldn't shock me if 2021 is Switch's peak year (some of the things things we may see next year are a price drop, new 3D Mario, BOTW2, rumored pro model, new 2D Mario, new Mario Kart, etc . . .)

Sony and MS have already stated that this isn't affecting their next-gen plans. If they both manage to manufacture the number of units they need and Nintendo doesn't? Hoo boy.
 

RoninStrife

Banned
Oct 27, 2017
4,002
At the end of the day, we did manage to figure out the general area where it crashed, it's just that the ocean is huge and a plane is tiny. We still find stuff from 75 years ago down there.
That in itself was ridiculous.. we only worked with the rolls royce engine pings.. and you would think those maintenance pings would be more accurate.
In any case. Just saying.. things like this, and the Coronavirus shows us how vulnerable we are.
 

Le Dude

Member
May 16, 2018
4,709
USA
Sony and MS have already stated that this isn't affecting their next-gen plans. If they both manage to manufacture the number of units they need and Nintendo doesn't? Hoo boy.
In that case it may have some effect, but you're still looking at $500 devices verses a $300 device that will see discounts and bundles. The former will be targeted towards the gaming enthusiast crowd at first, while the latter will be working its way further into the mass market. Third-party support shouldn't change drastically for the Switch in the first year or two either. I don't see any reason to anticipate a major impact.
 

Adventureracing

The Fallen
Nov 7, 2017
8,028
The question is how severe the shortages will be and for how long. Without knowing that it's hard to know what sort of impact it will have.
 

MonMonDad

Member
Dec 21, 2019
203
I hope the virus outbreak will end soon so everyone can be safe and thing can be back to normal.
 

Jon Carter

Banned
Oct 27, 2017
5,746
That in itself was ridiculous.. we only worked with the rolls royce engine pings.. and you would think those maintenance pings would be more accurate.
In any case. Just saying.. things like this, and the Coronavirus shows us how vulnerable we are.

What I find crazier is that we are so far from being able to cure baldness. It affects a majority of men, no one likes it, people are willing to throw lots of money at it, but we can't do it. Terraforming Mars is more realistic than curing baldness.