| Chrkeller said: Hopefully Nintendo has been manufacturing switch 2 units for a while now and will have millions available for launch. I do not want to see another ps5 situation where the hardware is hard to get for 2 years. |
They are unlikely to do that as hardware sitting, doing nothing hits the financial books pretty hard. Say it costs $200 per unit to manufacture and they have 2 million ready. That's a $400 million hit on the FY. That runs contrary to their projects for the year. There is also the standard expectation that the BoM (Build of Materials - the cost for all pieces that make the device) would be cheaper in time. Meaning that $200 BoM now might be $175 later.
Ideally, you want mass production to begin about 4 months prior to launch. That gives you a couple of million units at launch with enough shipment time to hit stores. You don't take the unnecessary FY hit and your BoM is likely cheaper per unit.
If I recall, Sony's situation was due to inadequate supply from a couple of vendors and they were locked into those supply deals. Nintendo has already diversified much of their supply chain starting from the Switch so it's likely the successor will have the same or even better supply diversification.
All numbers are speculation and are used merely for explanation.
To the privileged, equality feels like oppression.
