The spread of the new coronavirus has boosted sales of home video game consoles in Japan as an increasing number of people are gaming at home instead of going out.
However, problems such as delays in production have made it difficult to meet demand.
According to gaming magazine "Famitsu," Nintendo Co.'s home video game console Nintendo Switch sold 836,000 units in Japan in March, a 2.8-fold jump from February. The console has been in short supply at electronics retail stores.
Sony Corp.'s PlayStation 4 also saw an increase, selling 2.4 times as many units domestically in March as in February. This is unusually rapid growth given that it was launched six years ago and a new PlayStation model is scheduled to be released at the end of this year.
Games on computers and smartphones are also gaining in popularity. According to Lenovo Japan, sales of gaming PCs tripled in March compared to the same month of the previous year.
Another tailwind for the industry is that the global spread of the coronavirus has prompted a temporary review of the role of gaming. The World Health Organization (WHO) had previously been warning that too much time spent playing video games could cause addiction, but in March, it had an about-face. It now believes gaming can be an effective way to encourage young people to refrain from going out, and consequently launched a promotional campaign with Sega and other game companies.
However, the industry is facing the problem of supply chain disruption as coronavirus infections continue to spread. This month, Nintendo stopped domestic shipments of the Switch, which is manufactured in China and Vietnam, for about a week.
"Another reason for the shortage is the decrease in the number of flights and disruptions to the distribution of goods from abroad to Japan," said Hideki Yasuda of the ACE Research Institute. In some cases, used Switch consoles are traded in online auctions at much higher prices than for new ones.
Voluntary restraint over holding events has also been a hindrance. E3, one of the world's largest video game trade fairs, is held every June in the United States but has been canceled this year. Esports tournaments have also been canceled or postponed, which is sure to have a negative impact on the game industry's advertising and event revenues.
New software releases have also been postponed one after another, which is causing Yasuda concern.
"Prolonged restraint on going out could delay the development and release of popular titles," he said.
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