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Forums - Nintendo - Nintendo promises to ramp up Switch production for the holidays

RolStoppable said:
StarDoor said:
Why in the world is WSJ still talking about 18 million for this fiscal year? Even 18 million for FY3/2017 and FY3/2018 combined would be a stretch, because that would be 15.26 million during this fiscal year. Nintendo cannot possibly produce that many units. If they could, they would not have only shipped 1.96 million during Q1. They would've shipped over 3 million, like with the Wii.

The financial results for Q2 of the current fiscal year will bring a lot of clarity. Q1 was subject to before the first production increase could arrive, because plans for increased production weren't formed until after the strong response to the presentation in January. The logistics for such an undertaking take around six months under normal circumstances, so an increase wasn't going to materialize until July.

18m certainly sounds too high, but an adjustment to Nintendo's original forecast of 10m should happen in late October.

I don't doubt a production increase, but the fact that Nintendo has consistently stated that the production increase is already accounted for in their projection is preventing me from getting my hopes up. The Wii was also supply constrained to a large degree, with Nintendo trying to increase production throughout the fiscal year.

Wii:
Dec 2006: 3.19M
Mar 2007: 2.65M (FY: 5.84M)
Jun 2007: 3.43M
Sep 2007: 3.90M
Dec 2007: 6.96M
Mar 2008: 4.32M (FY: 18.61M)

The Wii started off with a higher production capacity than the Switch. If the Switch gets the exact same percentage increases in production:

Jun 2017: 1.96M
Sep 2017: 2.23M (+17%)
Dec 2017: 3.98M (+78%)
Mar 2018: 2.47M (-38%)
FY: 10.64M

Or if you use the larger March to June increase for Q2 of FY3/2018:

Jun 2017: 1.96M
Sep 2017: 2.54M (+29%)
Dec 2017: 4.53M (+78%)
Mar 2018: 2.81M (-38%)
FY: 11.84M

Unless they've been holding back a massive amount of stock for the holiday quarter, I can't see them going beyond 12 million for the fiscal year, and I find it unlikely that they're holding back more than what they did for the Wii. The 3DS was only able to ship 8.35 million in its first holiday quarter because Nintendo was completely insane and thought that the 3DS at $250 would sell better than the DS. At least 2 million of those shipments were supposed to be for Q1 and Q2, but there was so much stock left over that retailers didn't want to stock any more units. In the case of the Switch, it's the opposite: Nintendo massively underestimated it. Looking at the historical data, when Nintendo has a supply constrained console, holiday sales make up a much smaller portion of annual sales.



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StarDoor said:
RolStoppable said:

The financial results for Q2 of the current fiscal year will bring a lot of clarity. Q1 was subject to before the first production increase could arrive, because plans for increased production weren't formed until after the strong response to the presentation in January. The logistics for such an undertaking take around six months under normal circumstances, so an increase wasn't going to materialize until July.

18m certainly sounds too high, but an adjustment to Nintendo's original forecast of 10m should happen in late October.

I don't doubt a production increase, but the fact that Nintendo has consistently stated that the production increase is already accounted for in their projection is preventing me from getting my hopes up. The Wii was also supply constrained to a large degree, with Nintendo trying to increase production throughout the fiscal year.

Wii:
Dec 2006: 3.19M
Mar 2007: 2.65M (FY: 5.84M)
Jun 2007: 3.43M
Sep 2007: 3.90M
Dec 2007: 6.96M
Mar 2008: 4.32M (FY: 18.61M)

The Wii started off with a higher production capacity than the Switch. If the Switch gets the exact same percentage increases in production:

Jun 2017: 1.96M
Sep 2017: 2.23M (+17%)
Dec 2017: 3.98M (+78%)
Mar 2018: 2.47M (-38%)
FY: 10.64M

Or if you use the larger March to June increase for Q2 of FY3/2018:

Jun 2017: 1.96M
Sep 2017: 2.54M (+29%)
Dec 2017: 4.53M (+78%)
Mar 2018: 2.81M (-38%)
FY: 11.84M

Unless they've been holding back a massive amount of stock for the holiday quarter, I can't see them going beyond 12 million for the fiscal year, and I find it unlikely that they're holding back more than what they did for the Wii. The 3DS was only able to ship 8.35 million in its first holiday quarter because Nintendo was completely insane and thought that the 3DS at $250 would sell better than the DS. At least 2 million of those shipments were supposed to be for Q1 and Q2, but there was so much stock leftover that retailers didn't want to stock any more units. In the case of the Switch, it's the opposite: Nintendo massively underestimated it. Looking at the historical data, when Nintendo has a supply constrained console, holiday sales make up a much smaller portion of annual sales.

Yes, I definitely expecting something with line of those two predictions for FY. And I agree, if Nintendo has more stocks they could sell more in any case, especially during holiday season.



Offcourse they will, but real question if that will be enuf to meet demand during holiday season.



Oho, they got the new production lines ready in time for the holidays?

Turned out to be a smart move launching earlier in the year, then.



spurgeonryan said:
VGPolyglot said:

It's not sustainable long-term with the current situation.

What is the current situation,  you got some insider news? 

NAND shortage.  Seriously, just google NAND Memory Shortage.  You will have a wealth of reading material.  Factory output took a hit right around the time demand spiked.  



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People on here keep forgetting, Nintendo do not own any places that build stuff, they are just like Apple they pay others to do it, but since Apple have more money, those same places would put the iPhone priority over the Switch.

While Sony and Microsoft have many factories, if Sony wanted to slow production down on their phone line to increase playstation line, they can do it, they make many different products. I think Sony buy one of the places that made Wii U at a factorie a year or two ago, here is the link

https://mynintendonews.com/2014/01/31/sony-officially-buys-factory-producing-wii-us-dram/

So this is one less factory that Nintendo cannot use, I am not making any excuses for them, they do have the money to make their own factory, but they choose to not do it, and instead do the Apple route which is cheaper and make a contract with factories to build the switch at a decent price


But honestly people use your head, we all know Sony have many factories, they can produce 5 million ps4 in a short time, by stopping something else for a short time, for example cell division not making much money, and etc, theres no way Nintendo can compete with making that many systems, unless they stock pile for months and months for a new system launch



monocle_layton said:
Trump never gave us the wall he promised :(

You should wait a month, the budget/debt limit discussion will probably be hard next month especially when he wants the wall in it and can lead to another shutdown.






Didn't they increase production starting August already though?
Those were the reports we heard before, production bumb starting august and then another one for the Holyday season.



This holiday season is going to be a very fun one, oh yeah.



                
       ---Member of the official Squeezol Fanclub---

That is around the timeframe I am going to look into getting one so all in all good news for me.