Switch assembler Hosiden withdrew its fiscal year sales forecast, citing chips uncertainty

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The supply issues that have been plaguing the video gaming industry over the past year hasn’t ended just yet. In fact, the problem is still significant enough that Hosiden Corp., an assembler of Nintendo’s Switch consoles, has withdrawn its 2022 fiscal year forecast due to uncertainty with the ability of them and Nintendo to secure sufficient chips for the console.

According to Bloomberg, Hosiden withdrew their fiscal year forecast yesterday, courtesy of a filing to the Tokyo Stock Exchange. They said later that, despite some great earnings reports from Nintendo and Hosiden themselves so far this fiscal year, “currency volatility and semiconductor procurement uncertainty made it unfeasible to offer a reasonable projection for the full year”.

Meanwhile, Toyo Securities analyst Hideki Yasuda told Bloomberg that “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. This suggests its client’s fiscal year plan is becoming harder to achieve.”

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