The Nintendo Switch has been a pretty hot item since it first released back in March. Due to its high level of popularity with the masses, Nintendo has had a hard time keeping a steady flow of new units on store shelves. It’s unclear when the ‘Switch Drought’ will come to a solid end, but there seems to be another issue in the situation with a recent report coming from the Wall Street Journal.
According to WSJ, the company responsible for manufacturing the LCD screen that the Switch uses (Japan Display Inc.) is currently facing some financial trouble. As noted by YouTuber Spawn Wave who also covered the story, the company has had these issues for several years at this point and the situation isn’t getting any better. WSJ has reported that Japan Display Inc has lost 31.5 billion yen ($287259525 USD) in the past financial quarter and will be laying off 3,700 workers as a result.
One big reason as to why the company is losing so much money is due to a reduction in business from Apple. Instead of using LCD screens, Apple has been recently making the shift to higher-end OLED panels, like its competitor Samsung has been doing for awhile now. This change has resulted in Japan Display Inc’s profits to steadily drop. The Nintendo Switch uses a 720p panel which is much less expensive than what’s found in higher-end devices like the newest iPhones and iPads. On top of that, the Switch is mass-produced at a much lower volume than those aforementioned devices.
Japan Display Inc. won’t be closing its doors, so business will continue. But, if the company continues to decline like this then this could result in Nintendo having to look for either another supplier or possibly even change the type of screen that the Switch uses. In any case, the main hurdle right now is just keeping the system in stock. Hopefully what’s happening with Japan Display Inc. won’t make things even harder for Nintendo to keep producing to a steady stream of new Switch units.