https://mynintendonews.com/2017/09/04/nintendo-talks-about-the-ongoing-nintendo-switch-stock-shortages/
Basically, it's component shortages and Nintendo didn't have faith in it. This is also why third-party support is the worst we've ever seen for a Nintendo console's first year. If Nintendo doesn't have faith, why should their partners?
Makes you wonder if they were bracing for a flop and either planning to go third-party or to use Switch as a stopgap to prepare for a return to traditional consoles... Or perhaps even to go 100% handheld and Japan-focused.
Mainichi: It’s been half a year since the Nintendo Switch launched, why (are the shortages are still ongoing)?
Nintendo: We have never expected the Nintendo Switch to sell this much. You have to understand Nintendo doesn’t own the factory (making Nintendo Switch), as production is handled by another company in China. It’s easy to increase the production capacity of the factory. The finished product needs to be delivered from the harbor to the rest of the world, and rushing shipping is an extremely difficult thing to do.
We must also increase orders for parts that are made by many other different companies, and these are the same companies that also supply components for Apple’s upcoming iPhone, data centers, and many other products. Because of this, it’s difficult for these companies to guarantee timely delivery of our orders, hence production falls behind schedule.
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