Please ensure Javascript is enabled for purposes of website accessibility

Nintendo Working to Fix Nintendo Switch Supply Shortage

By John Ballard – Apr 13, 2020 at 9:53AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Stay-at-home orders and a hugely popular new game has caused widespread sellouts of the Nintendo Switch console.

The COVID-19 outbreak has caused bottlenecks on Nintendo's (NTDOY 0.25%) supply chains, making it impossible to find a Nintendo Switch available for sale anywhere, unless you're willing to pay above retail price on the secondary market. 

Nintendo has seen high demand ever since the release of Animal Crossing: New Horizons in March. Nintendo acknowledged the supply shortage in a statement released to GameSpot last week and assured customers that "more systems are on the way." 

A mother and daughter playing a game on the Nintendo Switch on the kitchen table.

Image source: Nintendo.

Struggling to meet demand is a good problem

Animal Crossing: New Horizons could be the industry's top-selling game when the official March sales numbers are released. In Japan, the game had the most successful launch of any previous Switch game within three days of launch. 

To alleviate supply issues, Nintendo posted on Twitter that it has temporarily paused shipments to Japan for the Switch and Switch Lite. Other than to fulfill reservations, Nintendo will not ship new systems to Japan this week. 

A lawsuit from Gamevice may also prevent Nintendo from supplying more Switch consoles for the U.S. market. Gamevice makes controllers for mobile devices with a similar split design to the controllers used for the Switch. Gamevice claims Nintendo has infringed on its patents and wants Switch sales halted in the U.S.

This isn't the first time Gamevice has filed a claim against Nintendo for violation of its patents. Nintendo won the previous battle, but this lawsuit could temporarily make it more difficult for this growth stock to meet demand in the short term.

John Ballard owns shares of Nintendo. The Motley Fool owns shares of and recommends Twitter. The Motley Fool recommends Nintendo. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Nintendo Co., Ltd. Stock Quote
Nintendo Co., Ltd.
NTDOY
$52.10 (0.25%) $0.13

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.