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Forums - Sales Discussion - The Nintendo stockpiling myth, and why it is wrong.

Oyvoyvoyv said:
I wrote an incredibly long answer to an about equal post, but I can't find it (it isn't in my post-section for some reason)


Here it is:
http://vgchartz.com/forum/thread.php?id=18013

Scroll down to 15th post.

 

I think you linked to the wrong thread.

 



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That Nintendo was saving units for christmas is definitely no "myth". The increase in sales was just too high. So its not a myth. (and I don't have any problems with it anyway). If they do it now I have no idea. But they did it for christmas. And again I do not see the problem.



Just _Ben wasn't arguing that there has been no stockpiling, he was saying it has had a lesser part to play than we (many of us) think.

There is a lot of evidence to show they did stockpile some for Christmas, and I am pretty sure they did, but taking away 3X1.8million from what was shipped in Q3 is not what was stockpiled.

As for the recent weeks, it is pretty difficult to tell if any stockpiling is happening, and if it is it will be miniscule.... what we are seeing currently will just be Nintndo not having settled into regular weekly shipments properly.



Ok I thought this had been put to rest. Everyone seems to be agreeing but comign away with different opinions. What seems relevent is the OP opinion on recent sales.

While I do believe they will stockpile for Christmas, I don't think they will do anything until they can get staightened out from the holiday which doesn't appear to be happened yet.

The main thing people never seem to take into account with these major fluxuations is that these are retail sales not Nintendo shipments. Where I live stores will often combine Wii shipments or hold onto them un til they have enough for all stores in the chain or hold them for a special sale. Sometimes it is for a big game like Brawl and sometimes it is just the last Sunday of the month. Personally I thnk Nintendo shipped a huge pile to the US end of January, many got sold last week, some trickled through this week and reatailers may be holding a few for Smash.

What I don't expect is for US numbers of Wii to go over 250,000 for smash week. There just is not enough units in the channel yet.

So yes I agrees that Smash stckpiling is a myth, but the OP is over simplifing the process.



Final* Word on Game Delays:

The game will not be any better or include more content then planned. Any commnets that say so are just PR hogwash to make you feel better for having to wait.

Delays are due to lack of proper resources, skill, or adequate planning by the developer.

Do be thankful that they have enough respect for you to delay the game and maintain its intended level of quality.

*naznatips is exempt

TWRoO said:
Just _Ben wasn't arguing that there has been no stockpiling, he was saying it has had a lesser part to play than we (many of us) think.

There is a lot of evidence to show they did stockpile some for Christmas, and I am pretty sure they did, but taking away 3X1.8million from what was shipped in Q3 is not what was stockpiled.

As for the recent weeks, it is pretty difficult to tell if any stockpiling is happening, and if it is it will be miniscule.... what we are seeing currently will just be Nintndo not having settled into regular weekly shipments properly.

I understand that Just_Ben was not saying there's no stockpiling at all (although his thread title made me think so at first). But besides that, I still think he's underestimating the stockpiling which took place for Christmas.

It's not a very important or fundamental disagreement though. Beyond any petty numerical disagreement, I think the important thing to know is that stockpiling is in Nintendo's dictionary. Last year, many people doubted it, now, we know for a fact that it's true.

 



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NJ5 said:
Just_Ben said:
NJ5 said:

OK, let me kill this thread quickly. From the horse's mouth:

http://www.nintendo.co.jp/ir/en/library/events/080125qa/index.html

Q: You said that you would be able to make 1.8 million "Wii" hardware systems per month, but you did ship 7 million during the 3rd quarter (October-December 2007). Did you ship the difference of 1.5 to 1.6 million by air?

A: We manufactured and retained some amount of hardware for the Thanksgiving and Christmas holiday season, and we also air shipped some units that were originally slated for delivery in January.

 


Did I say no stockpling for Christmas last year? I said not to the extend people believed. So you proved me right :)

Heres the quote:

"The christmas stockpiling myth: They just don't did it last year, at least not to that extend people believe it."

And they said some on both, not saying how much of each. How do you explain the low sales in Jan? Maybe they had 200k stockpiled and the rest was flew in? Hell people are talking about the 1.7 Million to explain and said they where stockpiled. And I and other where called "crazy" because we said they where mostly from Jan.

 


The quote says both things. I never denied that they flew in some Wiis last year, in fact I have believed so for some time now. My point is that they did both things, stockpiling included, and the quote I posted proves it without any doubt.

Regarding your calculations, I'd just like to point out one thing - you assumed that all of January's first two weeks of supply were shipped by plane for December, which can't be the case since shipments weren't null for those two weeks. Therefore, you're overestimating the number of flown units, and you're underestimating the number of stockpiled units.

For this month's situation and SSBB's launch, I guess we'll have to wait and see, not enough information is available yet.

 


 Quite true, quite true.

 

It's pretty ignorant and foolish to argue a point that you can't prove, especially when reality just might turn around and prove you entirely wrong in a couple weeks.



 SW-5120-1900-6153

VGChartz Hardware data for the period 24th Feb 2007 to 31st Mar 2007:


ConsoleWii
Total
1,132,897

 

VGChartz Hardware data for the period 07th Apr 2007 to 12th May 2007:


ConsoleWii
Total
1,442,673

 

 

As you can see, last year the 6 weeks leading up to their fiscal year end had a noticeable smaller shipment than the 6 weeks after their fiscal year end; with how close Nintendo got to their projected shipments many people suggested that Nintendo held back hardware to be released in their next fiscal year.

This year Nintendo forecast 14 Million Wii systems from March 31st 2007 to March 31st 2008, currently they have sold 15.8 Million and will likely pass 17 Million by March 31st. It is possible that Nintendo is limiting the ammount of hardware shipped out in order to stay close to their projection.

 

Note: You want to stay close to your projection at the end of the year, or to adjust your projection through out the year (so that it will match at the end of the year), otherwise people will distrust your future projections.



stockpile or short shipment, Nintendo STILL needs to get its act together and produce ENOUGH console for people who want it.

It is seriously killing them, if Microsoft drops the price at this point, I'm sure some customer who couldn't find a Wii, will buy an Arcade version instead if it's cheaper.



Soriku (Feb 10/08): In 5 years the PS3/360 will be dead.

KH3 bet: "If KH3 comes to Wii exclusive, I will take a 1 month of sig/avatar by otheres open a thread apologize and praise you guys' brilliance." http://vgchartz.com/forum/thread.php?start=50&id=18379
Original cast: Badonkadonkhr, sc94597 allaboutthegames885, kingofwale, Soriku, ctk495, skeezer, RDBRaptor, Mirson,

Episode 1: OOPSY!
selnor
: Too Human I even expect 3-4 mill entire life and 500,000 first day. GoW2 ( expect 7 - 9 million entire life and over 2 mill first day), Fable 2 (expect 5-6 million entire life and 1.5 mill fist day) BK3 (expect 4 - 5 mill sales entire life and 1 mill first day).. Tales/IU/TLR should get to 2 or 3 million! post id: 868878
Episode 2:
Letsdance: FFXIII (PS3+360) first week in NA = 286K
According to pre-order rate in week 13 (post id: 2902544)
kingofwale said:
stockpile or short shipment, Nintendo STILL needs to get its act together and produce ENOUGH console for people who want it.

It is seriously killing them, if Microsoft drops the price at this point, I'm sure some customer who couldn't find a Wii, will buy an Arcade version instead if it's cheaper.

Some? Probably ...
Many? Not likely ...

From January through November there is little need to make substitutions and most people who are buying a console are not in that much of a rush; on top of that the Wii shortage is not bad enough to prevent motivated purchases (most people can pick one up in a weekend or two), but is enough to prevent impusle purchases.



kingofwale said:
stockpile or short shipment, Nintendo STILL needs to get its act together and produce ENOUGH console for people who want it.

It is seriously killing them, if Microsoft drops the price at this point, I'm sure some customer who couldn't find a Wii, will buy an Arcade version instead if it's cheaper.

 I don't know... considering the arcades are supposedly in good supply and people are looking for pro versions, it seems not many people will even choose the arcade instead of searching for a pro. (This is assuming there is actually poor supply of pros)

 

Still, you are correct, they need to get supply sorted.