Nintendo Co. is raising its Switch production target to around 25 million units this fiscal year, people familiar with the matter said, as the Covid-19 pandemic continues to increase demand for the console and decrease component shortages. .
The Kyoto-based company, which in April increased orders to 22 million units by March next year, is asking partners to add a few million more units. The assembly partners plan to work at maximum capacity by December. The new production target suggests that Nintendo is likely to surpass the Switch's sales forecast of 19 million units for the current fiscal year, which analysts consider conservative or attribute to possible Covid-19 supply shocks.
Plans may still change by adjusting production in the January to March quarter if demand starts to decline in the coming months, but production partners hope to at least exceed the 22 million units they were previously instructed to assemble, people said. A Nintendo spokesman declined to comment.
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