Nintendo to make 20% fewer switch consoles because of chip shortage -Nikkei

FILE PHOTO: The Nintendo logo is displayed at the Nintendo Tokyo store, in Tokyo, Japan, Nov. 19, 2019. REUTERS/Issei Kato

TOKYO (Reuters) -Nintendo Co. will make 20% fewer Switch games consoles than planned in the year to March 31 because of shortages of semiconductors and other components, the Nikkei business daily reported.

Switch production for the business year will be around 24 million units, the paper reported, without saying where it obtained the information.

"The supply and demand of semiconductor parts is tight, and is affecting Switch production. We are assessing the impact," a Nintendo spokesperson said when asked about the report.

Nintendo last month launched an upgraded Switch to extend the life of the aging device, but chip shortages are throwing the production plans of global electronic makers into disarray.

Automakers too are struggling with chip supply chain disruptions caused by the COVID-19 pandemic, forcing them to curtail output by hundreds of thousands of vehicles.

Nintendo will report its earnings for the three months ending Sept. 30 on Thursday.

(Reporting by Tim Kelly and Sam Nussey, Editing by Louise Heavens)

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