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Forums - Sales Discussion - Global Hardware And Software 12 August 2017

Peach_buggy said:
fatslob-:O said:

Means that immediate demand has been met in Europe for the Switch ... (they don't really want anymore Switch units than they already have) 

Shortages indicate potential sales and businesses would ideally try to match that demand ... 

The reason why PS4 peforms much better than the Switch in other European territories is because it's the far more desirable system and that's all there is to it, simple really ... 

Yes but if the demand is suddenly met, then that also tells you the sales would have gone up, so that is just what i am trying to say. There are still places where supply is not quite being met yet, so there could be more room for higher numbers eventually. Nope i don't buy your reason either. Any proof? I agree that Nintendo should make more of  an effort in several of those countries but Switch doing Wii u-like numbers in Europe? Nope not buying it. Not like the numbers here are all that accurate at times anyway.

Switch was available in europe shortly after launch.



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AngryLittleAlchemist said:
Lawlight said:

We're talking about the rest of the world here - the Switch did not outsell the PS4 there. The margin is what I am doubting. We're talking regions like ANZ, Middle East, Africa where Nintendo is virtually absent.

And you can doubt that adjustments will be made but we've seen for a fact that VGC massively underestimated PS4's sales this year and they've had to do adjustments.

Still don't see how it's surprising that Switch can compete, but okey dokey. 

Generally, for Nintendo as a pure game-maker it is less reasonable to create a representation in smaller markets. At some point the profit made in these countries is not matching the pay for the people that push the hardware and games into the market. It is easier for Sony, as they sell general electronics, not only games. Moreover, the Switch is relatively new and hasn't launched in all markets. Recently we had the launch date for China and Korea. This is not yet in the sales. Sony and the PS4 have some advantages in Rest of the world. That doesn't mean the numbers are wrong: the Switch has also things going for it, like general popularity. But basically, if it hasn't launched in a market, you expect it to do much worse. This alone reduces the chances of Switch.



3DS-FC: 4511-1768-7903 (Mii-Name: Mnementh), Nintendo-Network-ID: Mnementh, Switch: SW-7706-3819-9381 (Mnementh)

my greatest games: 2017, 2018, 2019, 2020, 2021, 2022, 2023

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Miguel_Zorro said:
Interesting that this thread has so many more comments that this thread showing sales for the week before it.
http://gamrconnect.vgchartz.com/thread.php?id=231791

Yeah, this week has more Switch units delivered from Nintendo and each fan-group is debating that. Next week may differ, depending on how much ships with Switches came to the harbor.



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my greatest games: 2017, 2018, 2019, 2020, 2021, 2022, 2023

10 years greatest game event!

bets: [peak year] [+], [1], [2], [3], [4]

Spindel said:
JRPGfan said:

No idea why it its like 420$ USD here in DK.

As others have said, stock doesnt seem to be a issue atm here.

Price is just too high..... right now a new PS4slim is around 300$ USD here.

Thats a massive differnce in price, and it seems like not too many consumers are willing to pay it.

One factor that is different is because your DK price includes VAT, which the US price does not.

The second factor is that the exchangerate from YEN to DKK is different than the one for YEN to USD.

 

I did this calculation for sweden and if you subtracted our VAT and adjusted for exchangerate our switches are about 10 % (or one game :P ) more expensive than in the US. So these 10 % I can't explain (migth be import duties or something) but it's not as much as it seems when you only take the price on the shelf here and compare it to the US shelf price (since USA has a strange habit of not including VAT in the shelf price).

Then why is the PS4 the same price here as in the US, if its includeing VAT?

End of the day it doesnt matter why, only that there is a big price differnce between the PS4 and Switch here.

And I think it costs Nintendo sales.



Is 1 PS4 more profitable than 1 Switch?



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Mbolibombo said:
Lawlight said:

The RRP is set by Nintendo. So, this just says that stores are selling the Switch at a lower price that the one recommended by Nintendo.

Nintendo doesnt set the RRP in Sweden. Bergsala does.

Lawlight said:

While Gamestop may be on overall smaller retailer than the general ones, it is still the biggest gaming retailer in the world. It has around 50 stores in Sweden compared to Media Markt's 27. So, it can't be not that small when it comes to games.

And RRP is quite a lot to go by - consoles don't sell at lower than the price recommended by the manufacturer when there is a huge demand for it. Plus , the standalone ones are available on Media Markt's website, along with a lot of bundles.

Gamestop worldwide, is nothing what it is in Sweden. Gamestop is the biggest focused on games only, but mainly because it's the only one nationwide.

Meda Markt is a whole other beast here, it's like saying that the amount of "ICA Nära" surpasses the amount of "ICA Maxi" but they're a small contributor in the end. The demand is not like in Japan or North America, but it's solid. 

Spindel said:

Isn’t the RRP set by Bergsala and not Nintendo? (what I’m meaning is that in this instance Nintendo might be free of guilt)

This is correct. 

Also regarding Media Markt. They undercut prices of competition by operating at a loss. I mean since the first store opened in Sweden (in 2006) they have so far lost somwhere around 3-4 billion SEK (~$370-490 million) in trying to force the established competition out of the market (death toll so far, OnOff, Expert and numerous smaller electronics retailers).

I just hope they go away.



JRPGfan said:
Spindel said:

One factor that is different is because your DK price includes VAT, which the US price does not.

The second factor is that the exchangerate from YEN to DKK is different than the one for YEN to USD.

 

I did this calculation for sweden and if you subtracted our VAT and adjusted for exchangerate our switches are about 10 % (or one game :P ) more expensive than in the US. So these 10 % I can't explain (migth be import duties or something) but it's not as much as it seems when you only take the price on the shelf here and compare it to the US shelf price (since USA has a strange habit of not including VAT in the shelf price).

Then why is the PS4 the same price here as in the US, if its includeing VAT?

End of the day it doesnt matter why, only that there is a big price differnce between the PS4 and Switch here.

And I think it costs Nintendo sales.

I don't know that. But I know that my statement holds true for the Switch (for sweden). I mean a PS4 slim is cheaper here than a Nintendo Switch.



Lawlight said:
Bofferbrauer2 said:

When I asked when I could get a Switch here in Luxembourg, the shopkeepers told me "hopefully for you before Christmas", and that in several different stores. You can preorder the thing, but you still have to wait for several months here to actually get one! So demand is certainly not met yet, at least not for all of Europe. And if you consider all SKU, then no, demand isn't met at all yet. You can get one in many regions, but you're not allowed to be picky which one you want, as generally only one variant is available.

You won't find may scalpers in europe, simply because nobody buys overpriced hardware in (continental) europe. Just check denmark where the Switch has a 420$ pricetag and sits on the shelves

Could it be that Luxembourg is one of the smallest markets in the world and not a priority for Nintendo? Because retailers from other European websites suggest that the bigger countries are doing fine.

As for Denmark, well, the Switch is being sold at 200 kr less than the RRP at GameStop.

As for SKUs, are you talking about the colours?

Luxembourg shares it's market with belgium and in some cases with the netherlands too as otherwise, yes, it would be too small. But combined as it is that shouldn't be the case here

Yes, I was talking about the colors



Jranation said:
Is 1 PS4 more profitable than 1 Switch?

^ in terms of 1 unit of hardware sale? my guess? no.

I remember back when we found out specs, people where guessing 199-249$ price points for it.

Nintendo is makeing bank ($$$) on each sale, of hardware.

 

In terms of software? probably.



Lawlight said:
Spindel said:

Come on, they have lowered the price to the same price as Elgiganten has sold the console for from day 1.

It's more that GameStops crap strategy of overpricing the console has failed and they are forced to lower it to the same price as all the other stores.

The RRP is set by Nintendo. So, this just says that stores are selling the Switch at a lower price that the one recommended by Nintendo.

Nintendo didn't set one for europe, so shops are free to put up the price they want