Nintendo is preparing for a record software and switch sales in the coming fiscal year, which will run from April 2021 to the end of March 2022, according to Bloomberg. The company assumes that sales of their game consoles and game software will remain stable or increase slightly, while analysts have generally forecast that console and game sales will decline during the period in question. Bloomberg’s information comes from executives at Nintendo partners such as component suppliers, software manufacturers and retailers.
The hardware sales should be fueled by the new Switch version (OLED screen; 4K-capable in TV mode), which Nintendo has not yet officially announced (we reported). It is also expected that there will be a number of major game releases, which will increase software sales to 250 million copies in the next fiscal year – significantly more than the projected 205 million sales for the current fiscal year (April 2020 to End of March 2021). However, Nintendo’s official release calendar still looks rather empty, especially for the second half of 2021. So far, only New Pokmon Snap (April 30), Mario Golf: Super Rush (June 25), The Legend of Zelda: Skyward Sword HD (July 16) and Pokmon Radiant Diamond and Shining Pearl (4th Quarter) on the release list. Splatoon 3 is slated for 2022. But The Legend of Zelda: Breath of the Wild 2 and Metroid Prime 4 are still on the horizon. It’s also time for a new Mario game.
Bloomberg: “The coronavirus outbreak was initially a brake and then a fire accelerator for Nintendo. Covid-19 initially stifled the company’s supply and logistics before it triggered a surge in demand as people around the world were looking for entertainment and escapism. Animal Crossing: New Horizons became the ideal virtual hangout to relieve stress, fueled Switch sales and accelerated the transition from physical software to digital downloads. ”
Manufacturers of NAND flash memory (the physical storage medium for switch software) are also preparing for higher production, according to people in the supply chain. Many software developers are also said to give preference to the switch for their upcoming releases, as the console will almost certainly exceed the threshold of 100 million units sold in the coming fiscal year. By the end of 2020, Nintendo had sold 80 million Switch devices.
Nintendo will (unsurprisingly) also be confronted with the global bottleneck in chip supply, with which all other technology companies from AMD to Microsoft and Nvidia to Sony have to struggle – e.g. when securing silicon from companies such as Taiwan Semiconductor Manufacturing Company (TSMC; we reported). In addition, Nintendo may also struggle with a lack of more general parts such as integrated circuits for the OLED display and Bluetooth modules. Suppliers of such components told Bloomberg that the bottleneck would last at least until June and that the situation should not improve for the rest of the year.
Nintendo didn’t want to comment on Bloomberg’s report.
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