Nintendo is rumored to have added Sharp Corp. as an additional assembler of Switch and Switch Lite Consoles. With the holiday season coming up, and Nintendo Switch Black Friday sales starting, the company is reportedly trying to expand its ability to create new consoles as quickly as possible.
The Nintendo Switch and Switch Lite are breaking sales records as people around the world continue to look for new entertainment at home. Sales have been climbing as some look to the Switch as a lower-cost option for a current-generation console, and Nintendo has been finding it difficult to produce Switches to match the sudden spikes in demand.
Along with established production assembly in China and Vietnam, Nintendo is rumored to be teaming up with a Malaysian assembler owned by Sharp. While Nintendo President Shuntaro Furukawa did confirm that Switch consoles will now be assembled in Malaysia, whether or not Sharp is involved was not disclosed. This move would also help if trade tensions between the US and China become worse, giving Nintendo a way to get Switch units into the US without going through China first.
Although this hasn’t been officially verified by either Nintendo or Sharp, an uptick in production would be a good idea for both companies. Nintendo Switches are projected to sell even more units this year than either the PS5 or the Xbox Series S/X around the holidays, closing this year out with staggering numbers for Nintendo. However, in order to sell all these units, Nintendo has to be able to produce them first.
It’s a safe bet for Nintendo to both expand production and prepare for worst-case scenarios. Expanding production will help to fulfill the projected 10.8 million more units that will be purchased during the holiday season compared to last year. Between Ring Fit and Animal Crossing: New Horizons‘ success, Nintendo has already reported a nearly 50% rise in sales last quarter alone.
Source: Bloomberg
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