Blame It On The ‘Choke Points’, Says Reggie Fils-Aime
Nintendo executive Reggie Fils-Aime says that they can’t guarantee if the there will be enough units of the latest Nintendo Switch to meet the potentially overwhelming demand this holiday season. The reason behind it, he explains, are something called ‘choke points’ in the manufacturing chain.
Fils-Aime says that the supply chain for the Switch is complicated and that there are multiple components that can be considered as a choke point. He points out that one company in particular qualifies as a choke point in Switch’s manufacturing process: Alps Electric, which makes the components in the Joy-Con controllers. He refused to dive any further than that for the supply process of the handheld console.
“There is not one choke point, there are multiple choke points,” he explained. “I won’t go into any more detail but it’s not just one component. I’m going to make millions of these units to flow into the marketplace. But what I don’t know is what the demand is going to be. And there is a potential that demand is going to outstrip supply.”
Of course, he isn’t particularly happy with it as an insufficient supply for a huge demand is always bad for the company and for those who can’t get it. But, of course, all of this is a speculation. It is possible that there won’t be an outrageous demand for it.
“We don’t want to have a consumer disappointed by not being able to get one for the holiday season. But managing that complex supply chain is a challenge,” he said.