Supply Chain Struggles Reported By Switch Manufacturing Partner

Hosiden Corp, an Osaka-based company responsible for assembling Nintendo Switch consoles, has withdrawn its projected sales forecast for the year and is citing difficulties with the procurement of important components as the reason.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.

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.

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