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August 29, 2017 02:00 am

Nintendo Faces Supply Issues Ahead of Holiday Season

Takashi Mochizuki and Sarah E. Needleman report via The Wall Street Journal (Warning: source may be paywalled; alternative source): Nintendo's latest videogame machine, the Nintendo Switch, is winning fans for both its lineup of popular games and its flexibility -- it works as both a living-room console and a hand-held device. But the real challenge for gamers has been actually getting their hands on it. Production isn't keeping up with demand in Japan, resulting in blockbuster queues and lotteries there. Over weekends in July and early August, tens of thousands of fans lined up at stores for a one-in-10 chance to buy the $300 console at events that have become a form of entertainment. Nintendo's official target is to ship 10 million Switch units in its current fiscal year ending in March 2018. People involved in the supply chain say they have been told to prepare for 18 million units. One executive in the supply chain said his company was ready to pick up the pace of production if asked. One delicate balance for Nintendo: The more it tries to boost output quickly, the more it has to bow to the terms of parts makers, some of whom are also busy with orders for Apple Inc.'s next iPhone. "We're doing everything we can to make sure everyone who wants to buy a Nintendo Switch system can do so," Nintendo said in a statement. "We will ramp up production for the holiday period, which has been factored into our forecast."

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