Dependence on external companies for manufacturing and component procurement
First written in FY2016. 5 of 14 entries say "Restated". Latest entry: FY2025.
Nintendo moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2022: 4 of 9 companies on the "Worse" side.
13 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「For production, the Group uses multiple suppliers and contractors for most materials procurement and outsourced production as a risk-mitigation measure. For critical components, it has established a management system that identifies all processes, production sites, and responsible personnel, enabling it to assess the situation and arrange alternatives as quickly as possible in the event of an unforeseen accident.」
The Group continues to procure and produce through multiple companies, track the processes for critical components, and arrange alternatives in the event of an accident. - FY2024WorsenedAnnual report
「A shortage of critical components could lead not only to lower profit margins due to higher component prices, but also to product supply shortages, quality-control issues, and deterioration in relationships with customers. In addition, many of the production sites operated by manufacturing contractors are located overseas, and production could be disrupted and business performance adversely affected by deteriorating public security, natural disasters, the spread of infectious diseases, or other events in those locations.」
Regarding dependence on external companies for manufacturing and component procurement, the Group details the potential impacts beyond lower margins due to supply shortages, including quality control, customer relationships, and public security, natural disasters, and infectious diseases at overseas sites. - FY2023MaterialisedAnnual report
「Hardware unit sales decreased 22.1% year on year to 17.97 million units, as production was affected by shortages of semiconductors and other components until around the end of summer and sales growth, particularly during the year-end shopping season, was weaker than in the previous fiscal year.」
Production was materially affected by shortages of semiconductors and other components, resulting in Nintendo Switch hardware sales of 17.97 million units, down 22.1% year on year. - FY2023-Q3WorsenedAnnual report
「Hardware unit sales decreased 21.3% year on year to 14.91 million units, as production was disrupted by shortages of semiconductors and other components until around the end of summer. Software unit sales decreased 4.0% year on year to 172.11 million units, partly reflecting the decline in hardware sales.」
Production disruptions caused by shortages of semiconductors and other components continued until around the end of summer, resulting in hardware sales of 14.91 million units, down 21.3% year on year. The impact of supply constraints has extended beyond hardware to software sales. - FY2023-Q2MaterialisedAnnual report
「Meanwhile, hardware unit sales decreased 19.2% year on year to 6.68 million units, partly due to shortages of semiconductors and other components.」
Shortages of semiconductors and other components materially affected hardware sales, with unit sales decreasing 19.2% year on year to 6.68 million units. - FY2023-Q1MaterialisedAnnual report
「As a result, hardware sales totaled 3.43 million units and software sales totaled 41.41 million copies. However, partly due to shortages of semiconductor components and other factors, hardware sales decreased 22.9% year on year and software sales decreased 8.6%.」
Shortages of semiconductors and other components materially affected hardware and software sales, which decreased 22.9% and 8.6%, respectively, year on year. - FY2022MaterialisedAnnual report
「Whereas 『あつまれ どうぶつの森』 (released in March 2020) had been a major driver of hardware sales in the previous fiscal year, sales decreased 20.0% year on year in the current fiscal year, partly due to the impact of shortages of semiconductors and other components.」
The global shortage of semiconductors and other components materially affected Nintendo Switch hardware sales, with unit sales decreasing 20.0% year on year. - FY2022-Q2RestatedAnnual report
「Regarding business risks, the impact of COVID-19 and the global supply-demand imbalance for semiconductors and other components remains uncertain, and unforeseeable risks exist, including the possibility of continued disruptions to production and shipments. The Group will continue operating its business while taking necessary measures.」
The Group has reconfirmed its view that the impact of the global supply-demand imbalance for semiconductors and other components on production and shipments remains uncertain. - FY2022-Q1WorsenedAnnual report
「Regarding business risks, the impact of COVID-19 and the global supply-demand imbalance for semiconductors and other components remains uncertain, and unforeseeable risks exist, including the possibility of disruptions to production and shipments in the future. The Group will continue operating its business while taking necessary measures.」
Regarding dependence on external companies for manufacturing and component procurement, the Group has added global supply constraints for semiconductors and other components as a specific factor restricting supply. - FY2021RestatedAnnual report
「For production, the Group obtains most materials and production outsourcing services from multiple suppliers and contractors as a risk-mitigation measure. For critical components, it has established a management system that identifies all processes, production sites, and responsible personnel, enabling it to assess the situation and arrange alternatives as quickly as possible in the event of an unforeseen accident.」
The Group continues to procure materials and conduct production through multiple companies, track the processes for core components, and arrange alternatives in the event of an accident. - FY2020MitigatedAnnual report
「For production, the Group obtains most materials and production outsourcing services from multiple suppliers and contractors as a risk-mitigation measure. For core components, it has established a management system that identifies all processes, production sites, and responsible personnel, enabling it to assess the situation and arrange alternatives as quickly as possible in the event of an unforeseen accident.」
The Group specifies procurement and production through multiple companies, tracks the processes for core components, and provides alternative arrangements in the event of an accident, thereby detailing its response to dependence on external companies for manufacturing and component procurement. - FY2019RestatedAnnual report
「The Group outsources the manufacture of key components and their assembly into products to multiple companies outside the Group. The procurement and manufacture of critical components could be disrupted by the bankruptcy or other events affecting companies outside the Group.」
The Group reiterates the risks associated with outsourcing component manufacturing and assembly to external companies, including supply shortages, higher prices, and disasters at overseas production sites. - FY2017RestatedAnnual report
「The Group outsources the manufacture of key components and their assembly into products to multiple companies outside the Group. The procurement and manufacture of critical components could be disrupted by the bankruptcy or other events affecting companies outside the Group.」
The Group reiterates the risks associated with outsourcing component manufacturing and assembly to external companies, including supply shortages, higher prices, and disasters at overseas production sites. - FY2016First statedAnnual report
「The Group outsources the manufacture of key components and their assembly into products to multiple companies outside the Group. The procurement and manufacture of critical components could be disrupted by the bankruptcy or other events affecting companies outside the Group.」
The Group identifies the bankruptcy of external contractors, insufficient supply volumes, higher prices, and disasters or civil unrest at overseas production sites as risks.