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Shortage of chips hindering hardware development, says Nintendo.

The authorities at Nintendo Co. Ltd of Japan said on Friday that a global chip shortage, which forced the company to lower sales forecasts for its popular Switch device, is also affecting its hardware development.

‘The semiconductor situation is having some impact on hardware development,’ Nintendo’s development team leader Ko Shiota told in an analyst briefing.

‘To try and reduce the impact, we’re looking at substituting components and tweaking designs,’ he added.

The remarks come a day after Nintendo’s president, Shuntaro Furukawa, said that there was no sign of chip shortages abating as the company lowered its full-year Switch sales forecast.

At a time when rivals like Microsoft are expanding subscription and cloud gaming services, the Kyoto-based company is heavily reliant on its console business.

Nintendo refused to comment on its next-generation hardware plans on Friday, but company slides refer to a ‘integrated hardware-software next gaming system.’

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