[Asia Economy Reporter Joselgina] As the impact of the novel coronavirus infection (COVID-19) prolongs, the gaming industry is experiencing an unexpected boom, prompting Japan's Nintendo to push for increased production of its home gaming console, the Nintendo Switch. The number of Switch units produced, which has recently been in short supply in various countries, is expected to increase by 10% compared to last year.
According to Nikkei Asian Review on the 21st, Nintendo recently requested its parts and contract assembly partners to increase production volume for the second quarter (April to June) as more people are enjoying games at home due to the COVID-19 impact.
Nintendo has informed these partners that the total Switch production volume for this year is expected to increase by about 10% compared to last year's approximately 20 million units across the series. However, a Nintendo official also stated, "We do not know how many Switch units can be produced as some parts supply forecasts are uncertain." Nintendo outsources the production of its gaming consoles.
According to Nikkei Asian Review, some companies have increased their parts orders for the second quarter to as much as 1.5 times their original plans. However, the media added that there is a possibility that parts procurement at partner factories located in China and Southeast Asia may not proceed as expected. A parts company official said, "We will respond to the production increase request as much as possible."
The Switch has been in short supply in various countries since early February when the COVID-19 impact intensified. From mid-February, online sales prices also surged sharply. Earlier this month, when a state of emergency was declared in Tokyo and other metropolitan areas in Japan, prices soared to over 65,000 yen, more than double the usual price. On Amazon and other platforms, used Switch consoles were sold for around 500 dollars.
This is due to increased demand for games as people refrain from going out amid social distancing measures in various countries. According to Nielsen, game users' playtime increased by 45% in the United States and 38% in France. The "Nintendo Switch Animal Crossing: New Horizons Edition," which can be enjoyed on the Switch, has gained popularity, surpassing 3 million units sold in Japan alone (package version) within three weeks of its release.
In South Korea, as the Animal Crossing Edition also faced shortages, Nintendo Korea announced through its official SNS yesterday that "the Animal Crossing Edition is not a limited edition" and "shipments are scheduled to continue in April and May."
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