Nintendo, Microsoft, Sony, Apple, and many other tech firms have all been effected by the ongoing global chip shortages for their range of products. Speaking to the press, Nintendo president, Shuntaro Furukawa, said that he doesn’t “see an end'” to the global chip shortage and that the outlook “remains unclear” at present. Nintendo announced that they are splitting stock into 10 from October in an effort to prop up the company shares as Nintendo looks to revitalise sales of the five-year-old Switch console and overcome the global chip shortage.
“The outlook on chip shortages remains unclear. We do not see an end to this situation,” he said.Nintendo President, Shuntaro Furukawaa
Bloomberg about the move from Nintendo:
Nintendo needs to drive software sales and live services to support long-term earnings growth as the Switch platform enters the mature phase of its cycle. Hardware sales may keep declining as momentum from Animal Crossing fades further, barring a reported — but as yet unconfirmed — new console. Nintendo may leverage software, particularly first-party games from its smash-hit franchises such as Pokemon and Mario to prop-up top-line and earnings growth. We believe new software releases may offset the supply-side impact on hardware to drive upside to fiscal 2023 consensus.Nathan Naidu, analyst
“The stock split plan would be obviously a boost, I’m just surprised that Nintendo announced a stock-split after having resisted it for such a long time.”
“The only option for Nintendo to prop up the hardware’s sales momentum is to release upgraded hardware.”Yasuo Sakuma, chief investment officer at Libra Investments
Feels like its completely endless when it comes to this type of procedure.
Some company would make a lot of money making semiconductors right now.
I mean, Nintendo, if you’ve hit an impasse when it comes to the chip problem; Why not just dial back on Console Production and instead divert that time and money to the software side of things? I love the Nintendo Switch but you can’t deny there are multiple areas that really need improvement.
It’ll be hilarious if people can’t get a new console this entire generation. 9th gen consoles never existed. PS5 never existed. It’s a myth.
I don’t find it hilarious, nothing comical about not being able to get a new console. It’s very depressing actually.
This is crazy how outdated technology is still selling. Whenever they bring out the next Switch it might be harder to grab than the PS5.