Nintendo Switch Manufacturing Partner Reports Supply Chain Difficulties

0

A key manufacturing partner for Nintendo Switch has revealed they’re having trouble sourcing components.

Bloomberg reported that Osaka-based Hosiden Corp withdrew its previously released fiscal year sales guidance via a filing sent to the Tokyo Stock Exchange yesterday.

The company said a mix of currency volatility and uncertainty over semiconductor supply means it is now unable to offer a reasonable full-year projection.

According to company documents seen by Bloomberg, Hosiden generates more than half of its revenue from its partnership with Nintendo to produce the Switch. The company’s struggles suggest that Switch production could be delayed.

Nintendo declined to comment on Bloomberg.

The platform holder is due to announce its results for the first quarter of its fiscal year on Wednesday August 3, which could show whether Hosiden’s problems are having an impact.

In its most recent financial results, Nintendo cited semiconductor shortages as a key factor behind its 26% year-over-year drop in Switch sales.

At the time, the company predicted that it would still sell 21 million Switch units by March 31, 2023, although this marked the second year in a row that Nintendo planned to sell fewer consoles.

Share.

About Author

Comments are closed.