On Sunday, Bloomberg reported Nintendo might not have enough Switch consoles for sale in the U.S. market by April. The reason being, the corporation hasn’t been able to acquire components for its video game systems due to the coronavirus outbreak.
Nintendo’s Potential Switch Shortage
To be clear, Nintendo is not presently sold out of Switches in North America. The electronic giant’s retail partners, including Amazon and Best Buy have the console in stock. Moreover, the corporation already has shipments of the popular system set to arrive this month and in March. But beyond that, the firm might not have the ability to meet demand in its primary market.
Indeed, the corporation told Japanese retailers Switch and Switch accessory shipments would be constrained because of the coronavirus outbreak.
To stop the spread of COVID-19, the Chinese government ordered local manufacturers to close down. As such, companies like Nintendo haven’t had access to the key Sino made components they need for their hardware. While the region’s suppliers intend to resume production soon, there are lingering fears workers will return to their jobs infected. If that happens, Beijing may order another suspension of production to stamp out another outbreak.
Bloomberg spoke to one insider who said that Nintendo would not run out of Switches for the U.S. market. Instead, the corporation would ship diminished orders to its North American retailers. Unfortunately, the electronics maker has a major product release scheduled for next month — the firm plans on releasing “Animal Crossing: New Horizons” on March 20.
Other Tech Companies Affected by the Coronavirus
To date, clinicians have diagnosed more than 71,000 people with COVID-19, and an additional 1,700 have died after contracting the disease. Besides that horrific human toll, the coronavirus has also caused a significant disruption within the technology industry. Both locally based in international corporations that center their manufacturing in the Chinese mainland have been affected.
Last month, Apple stated that the epidemic could lower its fiscal second-quarter revenues by several billion dollars. Similarly, Cisco Systems explained its latest quarterly income had suffered in part due to the coronavirus outbreak. Chinese conglomerate Alibaba warned investors its revenue would be down in this period for the same reason.
58 Home, a Sino-based maid and maintenance service, delayed its U.S. initial public offering in light of the outbreak. The corporation has seen demand for its services evaporate since the coronavirus epidemic started. Locals haven’t called out for house cleanings or repairs because they fear exposure to the lethal illness.
In addition, the organization behind the Mobile World Conference canceled this year’s Barcelona, Spain-centered event because of virus-related complications. Prior to the gathering’s annulment, prominent vendors like AT&T, Amazon, Nokia, Nvidia, and Sony dropped out. The corporation cited a desire to keep its employees safe has reasons for pulling out of the international confab.
Along similar lines, Facebook put the kibosh on the Global Marketing Summit it scheduled for next month because of COVID-19. The Big Tech firm intended to host 5,000 international attendees in San Francisco from March 9-12. The corporation said it canceled the gathering “out of an abundance of caution.” As of this writing, four cases of coronavirus have been confirmed in Silicon Valley.