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

[DonFerrari]

Miyamotoo said:

DonFerrari said:

If you don't see then you are being silly.

If there is no financial sense and precedence to keep 5M inventory at the end of the FY is crazy.

You are acting silly, I gave you couple of reasons why it's possible that Nintendo will make more units than they can ship, but you totally ignoring that. And again, its not like they will produce 5m in one day and conserve them for next FY (lol), production is through the whole year, which means that if Nintendo observe that they need to slow down (or speed up) production, they can take appropriate action.

Nope, you tried to glue anything to the wall.

Yes they can make more than they'll sell. The point is explicity producing 5M more when selling 20 to 25M. They will produce and sell during the whole year, but suddenly they'll end the year with 5M in the factory. They way you defend your point they will end the FY with 5M on factory plus the amount on channels on the quietier quarter of the year.

Yes Nintendo can scale up or down the production, with extra cost when slowing down because they have to compensate for 1 Quarter or more worth of unsold inventory. And exactly because they can adjust production that it makes 0 sense to produce so much unsold material to wait for next quarter demand that outstrip what they can regularly produce and all that on a quiet quarter.