Due to the Coronavirus lockdown, everyone is staying home. People have nothing to do, similarly, the majority are playing games these days or either watching Netflix. Either way, there is a huge demand for these types of things and some companies are unable to withstand it.
Nintendo was unable to re-stock its Switch stock all over the world, because of rapid demand. The company was unable to make more Consoles because their production factories were closed. We also look at Netflix, who were told by the EU Union to decrease their video quality, because of the high burden on Internet services via Netflix.
Nintendo has come forward and spoken regarding its Switch Production. In an interview with Nikkei, Nintendo official said that they focusing on producing 10% more Switch Units in 2020 comparing last year. In 2019, Nintendo reportedly produced 20 million consoles.
“We hope [suppliers] will be responsive to the production increase, but for procurement of some parts, the outlook remains uncertain, and we can’t forecast exactly how many Switches can be supplied,” a Nintendo spokesperson said.
According to various reports, Switch is going out of stock immediately because there is a tool that automatically purchases it whenever it’s re-stocked. This way, no one else can buy the console as it is released, and most of the consoles go to resellers. Nintendo also had an increase in its share price, particularly because of the popularity and demand these days.