UPDATED 17:45 EST / FEBRUARY 19 2015

How a West Coast port strike could be bad news for Nintendo

San Francisco container shipA long running dispute involving a West Coast union and Pacific shipping companies does not seem to be ending anytime soon, which is bad news for Nintendo Co Ltd and many other Asian manufacturers.

Cargo ships might seem like ancient technology, but it is still the primary method of shipping heavy goods across the world. The slowdown resulting from the dispute between the International Longshore and Warehouse Union and the Pacific Maritime Association has effectively shut down dozens of ports from southern California all the way to Washington state.

The shutdown has affected multiple industries, and there have even been reports of produce left rotting on the docks. Now, Nintendo’s president Satoru Iwata has confirmed during an investor meeting that the port slowdowns are responsible for the delays in restocking Nintendo devices. So far the primary products being affected are the Nintendo 3DS XL and Amiibo figures.

The low supply has caused the value of some Amiibo figures to spike, with some selling on Ebay for nearly $90.

Nintendo has yet to make an official announcement to its consumers regarding the delays, but as more orders roll in without the products to fulfill them, the Japanese game company will likely be forced to make a statement regarding the lack of supplies.

 

“A strike is possible”

 

A strike wouldn’t just be bad news for overseas producers or local gamers. Business Insider reported that Deutsche Bank’s Joe LaVorgna predicts as much as a 1 percent drop in the U.S. fourth quarter GDP as a result of a West Coast port strike.

“If the current slowdown in port activity persists or even worsens, as a strike is possible, the negative impact on measured GDP from a widening trade deficit may be even larger than last quarter,” LaVorgna wrote.

Not all of Nintendo’s products are being affected equally. Iwata noted that while larger or heavier goods such as mobile devices and Amiibo figures are being delayed by the strike, light or small volume items like games can still be shipped by air. Nintendo fans may soon find themselves with plenty of games but nothing to play them on.

photo credit: Sailing on San Francisco Bay via photopin (license)

A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU