EMS provider Lite-On Technology expects shipments for power supplies used in game consoles to gradually rise in second-quarter 2020 and to peak in the second half of the year, according to the company.
Being a supplier of power supplies used in Nintendo Switch, Lite-On benefited from booming sales of the game console in the China market in 2019, industry sources said.
Prior to the coronavirus outbreak, Nintendo had raised its global Switch sales target for fiscal year 2020 (April 2019-March 2020) from 18 million units originally to 19.5 million units. Following the outbreak, Switch remains in booming sale but the outbreak has delayed production in China with shipments short of demand.
Lite-On, in addition to Nintendo, has also become a supplier of power supplies and the exclusive supplier of optical disc drives for use in Microsoft Xbox Series X expected to be launched in second-half 2020, the sources said.
As Xbox Series X consumes more power due to higher computing performance and display resolution, power supplies for the game console will offer higher average selling price (ASP).
According to Lite-On CEO Warren Chen, most game users prefer consoles to cloud computing-based streaming games.
Article translated by Adam Hwang
