Nintendo will produce 20 percent fewer Switch consoles this fiscal year due to chip shortages.
As reported by Nikkei, Nintendo had planned to produce 30 million units by March next year, but will only be able to hit 24 million.
Nintendo aimed to increase production of its new OLED model, but with high demand for the console and lack of components, this has not been possible.
“We are assessing their impact on our production,” said a Nintendo spokesman acknowledging the chip shortage.
Nintendo President Shuntaro Furukawa had previously admitted that the company was not able to produce as many consoles as the demand required, with uncertainty about future production.
Chip shortages have caused bottlenecks in production, not just for Nintendo, but across all console manufacturers.
In June, Nintendo sold 89.04 million Switch consoles worldwide, even less than a year earlier.
The comparison is unfair due to the boom caused by Animal Crossing: New Horizons, but the chip shortage means Nintendo has not been able to keep up with demand.
Still, the Switch is likely to overtake the Wii as Nintendo’s best-selling home console (101.63 million units).