Nintendo's stock of Switch consoles for the U.S. and European markets is likely to decrease in April 2020. The coronavirus outbreak is affecting the supply chain as the company that assembles the consoles gets the parts from China.
Nintendo is grappling with a shortage of components for their popular Switch console. According to Bloomberg and people with knowledge of the company’s supply chain, the stock of Switch consoles for the U.S. and European markets is likely to decrease as soon as April 2020 due to a production bottleneck caused by the coronavirus outbreak.
Nintendo is facing the component issues in Vietnam - where the company has an assembly partner that sources the console parts from China. The partner company in Vietnam is primarily tasked with building the consoles for the U.S. market. Bloomberg's sources have remained anonymous due t the private nature of the details.
A new Animal Crossing game is slated for release on 20 March 2020 and the potential decrease in supply could hurt Nintendo as the company relies on first-party titles to keep the Switch going in its fourth year.
Earlier this month, Nintendo apologised for the shortage of Switch hardware and accessories due to the virus-imposed production shutdown in China.
"We do not see any major impact on the shipment to the U.S. currently, but we will remain vigilant and take steps if necessary," a Nintendo spokesperson told Bloomberg News. "It's possible the supply would be affected by the virus if it becomes more widespread and prolonged."
The shipments that make it to the U.S in February and March won't be subject to any delays as those had already left Asia when the outbreak occurred.
According to one source, the shipments won't be entirely stopped, but they will be reduced. The U.S accounts for 43 per cent of Nintendo's core business and Europe and Japan account for 27 per cent and 21per cent, respectively.