Hardware Charts Week Ending Jan 10th

[binary solo]

mjk45 said:

binary solo said:

I wouldn't say it's a silly question. 300K in the retail channels is reasonably high, for the rate of sales Wii U looks to be experiencing. But considering the global market and the number of retailers that need to have at least one or 2 Wii U's on hand, and then retailer warehouses need to have the ability to rapidly re-stock if and when a Wii U sells, 300K seems like close to the minimum number of consoles you need to have in the supply chain even if you're only selling at a rate of 40K per week. 300K is only 7 weeks supply at 40K per week, and that's not a terribly large amount of inventory for all retailers everywhere in the world to be collectively carrying. And then of course there's the fact that Wii Uwas blowing through 300K in the space of 2 weeks not that long ago, so being somewhat up on inventory at this time of the year is not at all surprising. I would think by about June, if sales continue at the rate the seem to be post holidays the global inventory might drop down to 200K, but I can't see retailer inventory getting below that until Nintendo stops making the Wii U.

So I don't expect Wii U numjbers to be adjusted up at all.

Apparently because of the sales rate Nintendo doesn't manufacture all year round with the Wii U but they are supposed to be close to starting up again impacting future profits ,  so how does that fall in with the 300K would that sound about enough to tide them over to new stock comes off the  assembly line.

300K is what's been shipped (sold to retailers). We have no idea how much supply Nintendo has sitting in reserve unsold. But it would have enough stock in its reserve to resupply retailers if there are several weeks between end of 2014 and when they get their factories up and running to make the next batch of Wii Us.

There are 2 scenarios: try to do almost all of the manufacturing for the projected 2016 FY (April 2015-March 2016) before ther end of March this year, so that manufactuing costs are all attributed to this financial year, therefore offset by the profits made in the previous quarters.

Or, 

Minimal manufacturing for the rest of this quarter to maximise the profits for this year and make things look as good as possible for FY15, and put most of the manufacturing costs into FY16 to make FY16 a bit of a down year, but at least it gives them a nice up year for FY15.