Hilarious wrong predictions

[Cerebralbore101]

bonzobanana said:

Cerebralbore101 said:

There's plenty of predictions that Switch 2 will have a hard time due to chip shortages or that sales will fall off a cliff. I think that's a terrible prediction because Nintendo should have locked in contracts for parts just before Switch 2 came out. And by 2-3 years' time when the AI bubble, that causes a parts shortage, pops Nintendo's contracts will run out and things will be fine.

I'm sure Nintendo have contracts for chips but how many did they order and for how many consoles? They wouldn't want to order a huge amount of RAM and NAND chips if the console failed and they would only want to order enough for a relatively short time I would of thought. It's going to be a challenge for Nintendo surely unless they had the foresight to order a huge amount. I feel like we will see price increases for Switch 2 between March and May. Probably after April, they might resist price increases in this fiscal year. They already may have locked in a price early so there is a first increase of a small amount and then later in the year a bigger increase in the retail price when they are hit with a really high increase. Reading elsewhere the chip makes have been reducing contract numbers so they can provide for the most lucrative market, AI servers. So Nintendo may have been forced to take a smaller amount than they wanted. Hopefully this AI bubble will burst next year and pricing will start getting more reasonable again. However this year is going to be bad for many computer and console firms.

Switch 2 was always bomb proof IMO. Worst case scenario they only sell 50 million. It would make sense for Nintendo to order at least that many parts on a drawn out contract.