• Last summer, Nintendo shifted a portion of its manufacturing from China to Vietnam.
• The coronavirus is causing delays for the Japanese markets.

As the coronavirus continues to spread to countries across the globe, the shipment of products is quickly becoming a sensitive issue. While most companies diversify production sites to reduce risk, Nintendo’s choice last summer could soften the blow. Regardless, Nintendo admitted in its latest press release that the coronavirus is causing shipment delays for the Japanese market.

A Change in Strategy

The trade dispute between the United States and China could ultimately save Nintendo from a manufacturing disaster. As the United States imposed tariffs on Chinese-manufactured products last summer, Nintendo made the strategic decision to shift production to Vietnam. Other Japanese firms, such as Sharp and Ricoh, made the same move in an effort to diversify their risk.

Fast forward six months, and Nintendo released the following statement:

Thank you for your patronage of our products.

Due to the new coronavirus infection that is currently occurring, it is expected that production and shipment delays will be inevitable for peripheral devices such as the Nintendo Switch and Joy-Con manufactured in China for the Japanese domestic market. Similarly, shipments of the currently out-of-stock “Ring Fit Adventure” are expected to be delayed.

We apologize for any inconvenience this may cause.We will work hard to deliver the product as soon as possible, while keeping an eye on the effects of the new coronavirus infection, and we look forward to your understanding.

Analysis

While Japan is not the largest market for Nintendo products, it boasts one of the largest fan bases for the Animal Crossing. For example, New Leaf sold over two million copies in its first two months and became the best-selling in the series. Nintendo expects New Horizons to sell even better, which is why Nintendo announced a limited edition Animal Crossing Switch model. The shipping delays for Chinese-manufactured products now put the game’s success in jeopardy.

In addition, the popular Ring Fit Adventure workout game is also out-of-stock due to the shipping problems. Perhaps Nintendo can ramp up production in Vietnam; however, it will take time to add capacity. The western market will likely need to carry Nintendo sales for the near term as the company sorts out the production debacle.

Conclusion

But we want to know what you think. Do you think that Nintendo could experience shortages in the west due to the coronavirus? Is the Animal Crossing limited edition Switch model in danger of becoming backordered? Let us know what you think in the comments below or the social media links on the right. Be sure to check out our other news items on Smash, Pokemon, Modern Warfare, and more.

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