Hosiden Corp, an Osaka-based company responsible for assembling Nintendo Switch consoles, has withdrawn its projected sales forecast for the year and is citing difficulties with the procurement of important components as the reason.
Bloomberg reported this withdrawal, which could potentially spell future troubles down the line for Switch production. Half of the company's revenue is drawn from Hosiden's partnership with Nintendo, company documents suggest.
While Nintendo has declined to comment on Hosiden's issues, the company is due to publish its earnings for the first quarter of the fiscal year next month. This should give us some understanding of whether the assembly corporation's semiconductor shortage is having a knock-on effect on Nintendo's sales.
This would not be the first time that issues with sourcing vital chips has been blamed for a reduction in the Switch market. At Nintendo's previous financial briefing, the company reported that this same problem was causing a decline in sales for the console and the company has predicted a drop in sales for the current financial year as a result.
- Further Reading - Nintendo Forecasts Profits And Sales To Drop In This Financial Year
Until Nintendo comments, we cannot know for sure whether the shortage remains one of the company's burdens. What is for sure though, is that the semiconductor issues will need to be resolved soon if the company is to maintain excitement for the reveal of its next console.
What do you make of this news? Let us know in the comments below!
[source bloomberg.com, via gamesindustry.biz]
Comments 21
I thought supply issues only affected the PS5.
@johnvboy While true, the fact Switch uses a 7 year old chip could also cause a different type of spply issues.
And yet people still go on about needing Switch 2...heh yeah, they don't read the news. Would be a logistical nightmare worrying about a new console in the state the world is in when even old stuff is still in high demand and low supply.
Switch ProTM confirmed
this is probably the main reason a new switch might be delayed..
Wha…? I thought only Sony had supply issues.
Also makes it laughable that people unironically think Switch Pro [yes people still hoping for it] or Switch 2 is announced later this year or something lol
@Arawn93 Nintendo loves false scarcity, maybe they'll dig having an actual excuse for once. I wouldn't laugh at the idea of a Spring 2023 release for Switch 2 even if they only get to produce 80% of the consoles they'd want to for a year or two. Better than none.
The new Switch will be using newer chipset why do people use misleading statements to boaster false claims. This is the OLED were talking about older chipset. Chipsets do get updated.
Yeaaah... This is it.
We had somewhat good years from 90-2019, but now the world is just a mess, crisis everywhere. F P.
I always take any news with a large pinch of salt. ATM I can buy a Switch (any model) now, all in stock, for next day shipping in the UK. Same with the XBSX. Meanwhile, the PS5 are still sold out.
Don't worry, Twitter says Switch isn't affected by stock issues or parts shortages so Nintendo won't feel it.
Lol
"Citing difficulties with the procurement of important components."
What they actually mean is, nobody is making those raggedy old parts anymore because chip makers have moved onto better tech. Hell, even Nintendo themselves have already started putting HDMI 2.0 sockets on their Switch OLED Docks because nobody was making HDMI 1.4 anymore
@Ravenmaster
HDMI 1.4 is alive and well I assure you
@Arawn93 With the global supply chain issues and with the regular Switch selling bonkers amounts and about to overtake the PS4 in lifetime sales... the earliest we see a Switch 2 is 2023. Anything before that is wishful thinking and even 2023 is me being highly optimistic.
@IronMan30 as for why Sony gets the brunt of the supply chain jabs might more have to do with the lack of PS5s in the wild. Switchs are still very easy to find and the Xbox Series S is reliably available on Amazon and Bestbuy. Even the Xbox Series X is not that difficult to spot in the wild; I found one in a drugstore yesterday. Maybe the PS5 is just that popular... but I do have doubts.
EDIT: For the record, I'm not saying people don't prefer the PS5 to the XSX (don't ask me why their basically the same and Sony's killer apps so far are also on PS4 so why upgrade) but the PS5 is noticeably lagging behind the PS4 in sales at this point in their lives. So the lack of them being in stores is not a popularity issue, it is a clear supply issue.
@steventonysmith in a museum where it belongs
@Ravenmaster
Nope in many tvs and electronics sold today
@HenHiro We had somewhat good years from 90-2019, but now the world is just a mess, crisis everywhere. F P.
Try until 2016 and notice it's Men that caused all the crisis that everyone has to deal with.... and Global Warming is because of Masagony societies stoking their shafts. Put easier - they can fix it the Question is WILL THEY. And the silence is deafening....to anyone.
@steventonysmith In thrift stores
@Judgedean they aren’t sold out - Sony just insists people buy their remaining stock of Horizon lol
@cookeecut Meanwhile, "expert" Twitter "gaming analysts" keep asking for the Switch Pro... 🤦♂️
You mean the Real consumer base. It will happen all leaks already clearly states that but people keep harping NintenDoomed fandom misleads.
@SwitchForce I thought the leaks said Switch Pro was last year….or the year before that….or the year before that…? If it does end up happening it’s not because of leaks lmao. Broken clock is.right twice a day.
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