Nintendo plans to make 25 million to 30 million Switch game consoles next fiscal year

[DonFerrari]

Miyamotoo said:

DonFerrari said:

If there is logic explain it.

They had stock issues and the solution is to overstock? If they have good contracts for the parts they are not going to get into issues to provide their plan.

They will start to produce in 2018 and you expect then to produce at least 20% more than they will sell.

ANY stock that isn't moving is cost incurred, at least study a little the subject before discussing it.

You are trying to make reason of your assumptions, even if they aren't based on anything solid.

So you can't provide anything more than a wish for Nintendo to produce 30M. Show me any case of a company that planned to produce 50% more than sold on a year.

But I did, start reading again.

If you had already stock issues, and you can potentially again have stock issue (its posible again because potential shortages of Switch parts), and if you actually still don't know how much actually Switch could sell without any stock issues.

Yes, its posible.

Cost of stocks that are not moving for few months is nothing if they actually have good price for some Switch parts, or if there is possibility there will again be shortages of some Switch parts, or posibileate that Switch sales will explode.

Lol, but everything we have is assumptions, even this article is not a fact, and those my assumptions actually are logical.

You are losing it, there is nothing with nobodys wishes, again this are only assumptions, also its fact until now most of time Switch had stock issues and we still dont know how much could sell in FY 2018.

Ok... so 5M consoles at 300 USD each is 1.5B in stock sitting for some months, if you think the finnacial cost of this is neglible ok you probably have a degree in administration and another in economy. Go and look at how much cost to keep 1.5B USD in stock for one quarter or more (and that is, considering end year on March, you are talking about selling not only what would be their target sales for Q1FY19 that for the previous year 25M sales would mean like 3-5M on the quarter for them to sell double or 3x on the same period for 5M excessive inventory to move... or do you think they will produce 30M, stock 5M and then shut down the factory for a quarter or 2?)

You aren't talking about ramping production to possible 30M, you are talking about having contracts to produce that and for "they could have excessive demand... if you are producing 30M a year, to keep 5M on stock for a next year explosion, than you would have to sell at least 35M to make it happen"

So you are expecting they to sell 14M this year, 25M 2018 and 35M in 2019? And for some reason that is hard logic...

we don't know how much they could have sold in 2018, but expecting 5M in stock when selling 25M, plus the usual channel consoles you are really talking only on wishfull thinking.