Nintendo will reportedly be increasing the production of its popular Nintendo Switch console with the intention of producing as many as 30 million new devices by the end of the current financial year, which concludes next March.
Nintendo increased its production orders for the console to 25 million units earlier this year, but that goal has allegedly proved insufficient compared to persistently increasing demand for both the console and Animal Crossing: New Horizons. Sources who requested to remain anonymous reported that factories are now operating at 120% to meet the gaming company's requested quota.
The coronavirus pandemic had a significantly negative impact on console production for the Japanese gaming giant. Nintendo often struggled to meet the demand for its console over the past few months, as more people have been spending time at home during the initial lockdown. Interest and sales in the console rose dramatically during quarantine alongside the release of Animal Crossing: New Horizons, with the game's island adventures offering many gamers a friendly, colorful, engaging, and, importantly, stress-free distraction - especially when compared to the world's problems.
Animal Crossing: New Horizons proved to be so popular that sales for the game, alongside purchases of the Nintendo Switch, were extremely high despite being released six months ago, with reports recently indicating that more adults have been playing the game than kids. These sales led Nintendo to report improved quarterly earnings, which were measured in June. Animal Crossing: New Horizon was highlighted as an undeniable driving force alongside Nintendo's efforts to encourage more digital gaming purchases via Nintendo eShop, which gave gamers easy access to download and engage with the island fun without having to leave their homes.
Katsuhiko Hayashi, an industry tracker representative from Famitsu Group, explained how its date suggested the Nintendo Switch hasn't yet "fulfilled demand." It was noted how Nintendo Switch sales will likely "gain further momentum" by the end of 2020. Additionally, Hayashi contextualized the game's success in relation to its burgeoning sales and the public's continued interest in Animal Crossing: New Horizons. According to Hayashi, its success was driven by two different sets of gamers: those eager for the Nintendo Switch's library of games to grow and those attracted to the game because of the hype surrounding it. The runaway success of Animal Crossing: New Horizons has certainly punctured pop culture, with recent rumors suggesting it may receive its own LEGO set in the future.
Thankfully, whatever production issues Nintendo first struggled with at the beginning of the pandemic have since been addressed and amended, allowing its supply chain to once again work unimpeded. With the lofty goal of producing 30 million additional consoles to meet demand - and Nintendo's production lines fully operational to try and do so - it's clear that public demand hasn't slowed down for Nintendo's hardware despite increased interest for highly-anticipated next-generation consoles like the Xbox Series X and PlayStation 5.
Source Bloomberg