RolStoppable said:
Enough of this "Nintendo is deliberately forecasting way under what they will achieve" line of thinking. This has to stop. One factor to remember is that last year they shipped 2.45m while selling through more than 3m (VGC estimates 3.27m), so sell-through exceeds shipments at times. Another factor that has yet to be mentioned in this thread is that Nintendo CEO Furukawa issued a statement that the coronavirus is impacting Switch production in China. That statement was ambiguous, so I hope that the Q&A session with investors can provide more clarity in the coming days. It's possible that there will be a temporary halt of production at one or multiple Chinese factories which would result in lower shipments and possibly shortages in the market space towards the end of the quarter. So excess stock from the holiday season might not be the sole reason for Nintendo's low forecast, because a problem in the supply chain cannot be solved within a single quarter. |
With the outbreak, one would hope all 3 shipped enough in the holiday season to create a decent buffer until it gets sorted out. Hopefully, the sorting doesn't take long.
@OP
Great quarter for Nintendo.