The coronavirus outbreak has caused delays in manufacturing in China, and Nintendo is about to feel this in Switch stock. Although Nintendo’s main assembly operation was recently moved to Vietnam, certain components continue to be made in China. This supply has taken a hit as a result of coronavirus, with those familiar with the supply chain telling Bloomberg that they expect Switch stock to suffer in North America and Europe sometime after the release of Animal Crossing: New Horizons in late March/early April.
Nintendo is already dealing with shortages in Switch stock in Japan, but the company told Bloomberg it does not believe the same will happen in the US in April. “We do not see any major impact on the shipment to the U.S. currently, but we will remain vigilant and take steps if necessary. It’s possible the supply would be affected by the virus if it becomes more widespread and prolonged.” Chinese suppliers said it’s going to be “at least a few more weeks” before production is back at full capacity, as they do not want to risk infecting their workforce. Assuming this comes to pass, it may be the thing to halt the Switch’s unstoppable momentum. Nintendo’s hybrid console continues to be the only platform seeing growth while PS4 and Xbox One sales decline.
