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Forums - Sales Discussion - Global Hardware 28 March 2020

trunkswd said:
SpokenTruth said:

I've been wondering if any platform holder would move to air dropping.  It's more expensive but we're seeing a spike in demand which may give them the incentive to pay it.  Then again, can they even air drop right now?  To be a market analysts right now...bump that.

Oil prices have dropped a lot and there isn't much demand for flying. It is possible it wouldn't be too expensive to do

Except, it is.

Much stuff that got transported by planes in the past was done so in the trunks on passenger planes, since luggage only fills those about halfway up.

But since those ain't flying anymore, cargo airlines now have to haul all that stuff plus their usual stuff and tons of medical supplies to boot. And that with reduced manpower due to Covid-19, so loading and unloading takes longer than usual. All this puts enormous pressure on cargo airlines who simply can't transport their dues plus all the extra in time, and thus their fares, which were already above those for freight in passenger planes, have gone up substantially.

We had an interview here in Luxembourg with the airport management and bosses of Cargolux and Luxair. Luxair was down 60% until mid-March, but Cargolux was already 20% up and got more and more orders as passenger airplanes got grounded, and were worrying that they couldn't carry all that stuff. Keep in mind that Cargolux is one of the biggest air cargo companies in the world (9th worldwide and biggest non-subsidiary cargo airline), but for cargo companies to reach that, they need much less panes than passenger airlines. So their 28 Boeing 747 cargo  are in constant demand, as they basically have to replace around a thousand passenger planes. 



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Bofferbrauer2 said:
trunkswd said:

Oil prices have dropped a lot and there isn't much demand for flying. It is possible it wouldn't be too expensive to do

Except, it is.

Much stuff that got transported by planes in the past was done so in the trunks on passenger planes, since luggage only fills those about halfway up.

But since those ain't flying anymore, cargo airlines now have to haul all that stuff plus their usual stuff and tons of medical supplies to boot. And that with reduced manpower due to Covid-19, so loading and unloading takes longer than usual. All this puts enormous pressure on cargo airlines who simply can't transport their dues plus all the extra in time, and thus their fares, which were already above those for freight in passenger planes, have gone up substantially.

We had an interview here in Luxembourg with the airport management and bosses of Cargolux and Luxair. Luxair was down 60% until mid-March, but Cargolux was already 20% up and got more and more orders as passenger airplanes got grounded, and were worrying that they couldn't carry all that stuff. Keep in mind that Cargolux is one of the biggest air cargo companies in the world (9th worldwide and biggest non-subsidiary cargo airline), but for cargo companies to reach that, they need much less panes than passenger airlines. So their 28 Boeing 747 cargo  are in constant demand, as they basically have to replace around a thousand passenger planes. 

thank you for the explanation. I was just thinking since airlines were barely flying at all and the flights they are doing are mostly empty there would be plenty of room for cargo on them. 



VGChartz Sales Analyst and Writer - William D'Angelo - I stream on Twitch and have my own YoutubeFollow me on Twitter @TrunksWD.

Writer of the Gap Charts | Weekly Hardware Breakdown Top 10 | Weekly Sales Analysis | Marketshare Features, as well as daily news on the Video Game Industry.

trunkswd said:
Bofferbrauer2 said:

Except, it is.

Much stuff that got transported by planes in the past was done so in the trunks on passenger planes, since luggage only fills those about halfway up.

But since those ain't flying anymore, cargo airlines now have to haul all that stuff plus their usual stuff and tons of medical supplies to boot. And that with reduced manpower due to Covid-19, so loading and unloading takes longer than usual. All this puts enormous pressure on cargo airlines who simply can't transport their dues plus all the extra in time, and thus their fares, which were already above those for freight in passenger planes, have gone up substantially.

We had an interview here in Luxembourg with the airport management and bosses of Cargolux and Luxair. Luxair was down 60% until mid-March, but Cargolux was already 20% up and got more and more orders as passenger airplanes got grounded, and were worrying that they couldn't carry all that stuff. Keep in mind that Cargolux is one of the biggest air cargo companies in the world (9th worldwide and biggest non-subsidiary cargo airline), but for cargo companies to reach that, they need much less panes than passenger airlines. So their 28 Boeing 747 cargo  are in constant demand, as they basically have to replace around a thousand passenger planes. 

thank you for the explanation. I was just thinking since airlines were barely flying at all and the flights they are doing are mostly empty there would be plenty of room for cargo on them. 

They aren't flying, let's say it would cost to much to fly the aircraft without passengers and rely only on carrying stuff on the dock.

For regular aircrafts it is a synergy where you as passenger will cost less because a lot of the cargo space is sold to other companies transportation needs, and these companies also save money on their transporting costs compared to a cargo ship (and have more varied lines) because passengers pay for a lot of the cost while not using the whole cargo space (main reason why we have to pay extra for more luggage, it isn't just a matter of costing more fuel to transport your stuff, but also using space that would be used for other stuff).



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Azzanation: "PS5 wouldn't sold out at launch without scalpers."



Benji says the Switch is currently selling at a "Peak Wii level" in the US for the last weeks of March and currently in April. He does expect shortage soon. So i guess Nintendo is doing restocks but the demand is just insanely high at this point. We got some restocks here in Canada this week. There must be some Switch coming from China's production in there i don't think the Vietnam production can allow them to sell Wii level. So apparently expect crazy numbers for Switch (and games) in March, mainly in the late weeks. And April is really strong too rn but could be balanced by shortage in the next weeks.



Apparently the Lites are running into shortages now.



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xMetroid said:


Benji says the Switch is currently selling at a "Peak Wii level" in the US for the last weeks of March and currently in April. He does expect shortage soon. So i guess Nintendo is doing restocks but the demand is just insanely high at this point. We got some restocks here in Canada this week. There must be some Switch coming from China's production in there i don't think the Vietnam production can allow them to sell Wii level. So apparently expect crazy numbers for Switch (and games) in March, mainly in the late weeks. And April is really strong too rn but could be balanced by shortage in the next weeks.

I wonder if thats hyperbole or its actually doing peak Wii level.



When the herd loses its way, the shepard must kill the bull that leads them astray.

I believe Benji here. Animal Crossing has transversed mainstream media in a way that I have seen no other Nintendo game do since Pokemon Go.



zorg1000 said:
xMetroid said:


Benji says the Switch is currently selling at a "Peak Wii level" in the US for the last weeks of March and currently in April. He does expect shortage soon. So i guess Nintendo is doing restocks but the demand is just insanely high at this point. We got some restocks here in Canada this week. There must be some Switch coming from China's production in there i don't think the Vietnam production can allow them to sell Wii level. So apparently expect crazy numbers for Switch (and games) in March, mainly in the late weeks. And April is really strong too rn but could be balanced by shortage in the next weeks.

I wonder if thats hyperbole or its actually doing peak Wii level.

Well i also watched his stream on Youtube ( https://www.youtube.com/watch?time_continue=3&v=nxINMffTp6c&feature=emb_logo ) and he said around 13 minutes i think to prepare to be absolutely blown away by the NPD numbers for the Switch. PS4/XBONE are also high but Switch is insane apparently. He also said Animal crossing in the US should be around the same numbers as Japan so to expect MINIMUM 7-8 millions for the fiscal year and could very well be 10 millions or more.



newwil7l said:
I believe Benji here. Animal Crossing has transversed mainstream media in a way that I have seen no other Nintendo game do since Pokemon Go.

EXACTLY. I literally thought of the same thing yesterday about how everyone is talking about it and it's kind of a phenomenon right now with people that don't usually buy Nintendo stuff to actually go their way, buy a Switch and Animal crossing.  Less crazy then PGO but this time it really does sell a lot of hardware. Thing is, some people say the pandemic is stopping the possible sales, but i do think this phenomenon would have never happened in that scale without it. We will truly never know, but that's all people have to do right now and the game is perfect for social media and to get distracted during quarantine.



xMetroid said:
zorg1000 said:

I wonder if thats hyperbole or its actually doing peak Wii level.

Well i also watched his stream on Youtube ( https://www.youtube.com/watch?time_continue=3&v=nxINMffTp6c&feature=emb_logo ) and he said around 13 minutes i think to prepare to be absolutely blown away by the NPD numbers for the Switch. PS4/XBONE are also high but Switch is insane apparently. He also said Animal crossing in the US should be around the same numbers as Japan so to expect MINIMUM 7-8 millions for the fiscal year and could very well be 10 millions or more.

If only we still got NPD numbers... :(



Bet with Liquidlaser: I say PS5 and Xbox Series will sell more than 56 million combined by the end of 2023.