Recently, China has been devastated by a new breed of Coronavirus outbreak in the country. The virus originated from the Wuhan district and is known to cause Pneumonia. So far, thousands are infected while the death toll measure in the hundreds. This has led to many multinational corporations to shut factories and production lines in the region after the local government enforced the regulation.
Now, Japanese companies Nintendo and Sharp have also come forward with the issues that the recent outbreak has caused in their productions. Nintendo, the popular gaming studio and console maker, has stated that its Switch portable gaming console production and supply has taken a hit causing delays while Sharp is considering moving its production line entirely if the situation doesn’t resolve soon in the region.
Nintendo’s supply chain has been disrupted after the recent Coronavirus outbreak and according to an official tweet on Twitter, the “Production and Shipping of Nintendo Switch has been delayed.” The company has apologized for the occurrence and are seeking to resolve the issue as soon as possible.
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Sharp, on the other hand, is considering to move its production line entirely. The consumer electronics manufacturer recently publicized its financial report for the final quarter of 2019. In the report, the company saw a fall in revenue by 1.2 percent over 2018, which is also lower than the revenue generated back in the same quarter in 2015.
However, Sharp said that the impacts of the virus outbreak are going to be more prominent but also stated that exact losses are difficult to compile at the moment. Katsumi Nomura, Sharp’s Vice President, mentioned that the company will consider moving out of the region if the epidemic shows no sign of recovery in the near future. This will mark opportunities opening up for other regions, although the exact location of the alternative has yet to be announced.
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