Nintendo is reportedly intending to increase the production of the Nintendo Switch in the next fiscal year, which is due to begin in April 2023, according to a report from Bloomberg. Sources told the media outlet that Nintendo is now targeting over 19 million units shipped until the end of the next fiscal year to meet consumer demand for the best-selling hardware, debunking analysts' forecast about its manufacturing strategy.
The report claims that Nintendo has already informed suppliers and business partners that it is planning to manufacture more units than in the current fiscal year to meet consumer demand for the now ageing console. Nintendo believes it could sell more units than last year, now that the component shortage is no longer an issue for the increase in production.
Although the company has not provided a specific target to business partners, Nintendo is said to be targeting over 19 million units supplied until the end of the next fiscal year in 2024, which is more than its previous sales forecast.
Nintendo recently reduced its Switch sales forecast for the ongoing fiscal year by two million units back in November 2022, from 21 million to 19 million. However, as per the report from Bloomberg, Nintendo has resolved the chip shortage that prevented the company from producing more consoles to live up to expectations from time to time.
It was also outlined that the Switch's struggles on the market have not been due to decreasing demand but supply issues. Nintendo may also revise its manufacturing strategy for Switch at a later date according to consumer demand.
It wouldn't be surprising that Nintendo believes it could sell more Switch until Q2 of 2024 with the help of suppliers and partners, as it is already the best-selling console in the United States, in terms of units sold. On the contrary, analysts began assuming that people will likely refrain from buying old-gen systems, which may cause a decrease in Switch sales going forward. However, there is also a flagship IP hitting the console in 2023 with a new entry, The Legend of Zelda: Tears of Kingdom, which could boost Switch sales from May onwards.
In other Nintendo news, a new rumor circulating has suggested that Nintendo has canceled plans for a mid-generation Switch update due to an unknown reason.