Nintendo is looking for replacement components to combat chip shortages

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San Francisco: Japanese gaming giant Nintendo has announced that the global chip shortage, which has already forced the company to cut its expected sales for the popular Switch device, is also hampering hardware development.

Nintendo manager Ko Shiota said the semiconductor situation is having some implications for hardware development, reports GizmoChina.

“We’re looking at replacing components and tweaking the design to reduce the impact,” said Shiota.

The chip shortage has impacted various technology dependent industries around the world including automotive, consumer electronics including smartphones, laptops, game consoles, televisions, home appliances and more.

In a statement to CNBC last month, Intel CEO Pat Gelsinger speculated that the global chip shortage is likely to last much longer.

He expects the shortage to continue at least until 2023.

That announcement comes a day after the company’s president Shuntaro Furukawa said the chip shortage was showing no signs of easing, forcing the company to cut its annual sales forecast for the Nintendo Switch by 6 percent.

Furukawa also announced that the company is struggling to meet increased demand during the year-end Christmas shopping season as chip shortages disrupt production.

The gaming giant relies heavily on its console business as competitors like Microsoft expand subscription and cloud gaming services.

Nintendo went on to say that it “plans to continue growing its business around the core concept of creating unique integrated hardware-software products.”


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