Nintendo Switch production might be slowed down in the next fiscal year because of the chip shortage.
One of the console assemblers based in Osaka, Hosiden Corp. is withdrawing its sales forecast because getting the needed electronic parts is becoming much more difficult this time.
Nintendo Supplier Retracts its Past Outlook
In a report by Bloomberg on Friday, July 29, Hosiden has decided to withdraw its outlook because it saw that securing chips remains uncertain at the moment.
The production of the Nintendo Switch console could be affected by the decision. Since Nintendo is responsible for over half of Hosiden's revenue, the supplies for the next-gen gaming machine will surely be impacted.
Last time, the Japanese video game firm shared that it is targeting to sell 21 million units of the console at the end of March during the financial year.
As for the part of Hosiden, it immediately noticed a 14% spike in its shares on July 29. Before that, it announced that its forecast would continue to improve by September, and it would be much better than the April-June forecast earnings.
Although it's a clear sign that the production of the consoles has a bright future, procurement of electronic components makes it unobtainable.
The company even said that the yen volatility leaves the full-year projection unfeasible for both sides.
"The newest outlook by Hosiden shows production is likely to decline in the July-September quarter from April-June, which should be the other way around for the entertainment business, which tends to ramp up output in the buildup to the year-end holiday season," Toyo Securities analyst Hideki Yasuda said.
Yasuda continued that the fiscal year plan has become much more challenging to reach as a result of the above-mentioned issues.
Nintendo Switch Shortage
In another story from GamingSym, Hosiden's decision to withdraw its projection could mean that a Nintendo Switch shortage could happen. Although it's unlikely to happen this year, the next few years could be a hurdle for the console maker.
In other news, Sony launched Backbone One, a special mobile gaming controller for iPhones. With the help of Backbone, the gaming company brought a gaming accessory that can allow users to play PS4 and PS5 games through "Remote Play."
Of course, the PS5 DualSense controller is still much better than it in terms of features and battery life. Since Backbone One is for iPhone, it gathers some power from the device to make it work.
Meanwhile, Tech Times reported that PS5 would soon have 1440 support on its beta software. This is great news for gamers who connect their console to large TV monitors. The new support will also bring clearer images and smoother gameplay to all users.
This article is owned by Tech Times
Written by Joseph Henry
