Nintendo Switches up production

Discussion in 'Console Industry' started by Entropy, Oct 5, 2017.

  1. Entropy

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    To two million per month according to digitimes.
     
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  2. DuckThor Evil

    DuckThor Evil Anas platyrhynchos
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    I hope that allows them to do a price cut. Starting at 329€ in Europe for the base unit with no games is too much. Just can't justify a purchase with that reality, even though I'd like to own it. It would be sweet to bring the Switch along with my travels.
     
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  3. Silent_Buddha

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    Interesting, I hadn't realized that they haven't even started to sell the Switch in some countries yet (Taiwan in the article). It's unfortunate that unlike the PS4 and XBO launches we didn't get a list of countries the console was going to be available in. Of if one was available, I obviously missed it.

    Regards,
    SB
     
  4. mpg1

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    Doubtful we see a price cut anytime soon...
     
  5. Entropy

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    That was my own eyebrow raiser as well. I can't really say how much Taiwan and mainland China would add to sales though, but without major increases in manufacturing extending the Switch rollout would be impossible. I don't see how they are supposed to fill demand going into the holidays as it is, even with increased production to these levels.
     
  6. dobwal

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    Not surprised. We are 6 weeks away from the start of holiday shopping season.
     
  7. Pixel

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    For all the reasons PS4/Xbox One have performed poorly in China including preference for F2P and multiplayer oriented games, I doubt the $40-60 game model will do too well from this new hybrid portable console device. Nintendo probably only has a little brand recognition outside of Hong Kong.
     
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  8. tongue_of_colicab

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    It doesn't say how much they were producing before so for all we know it could be only 10% more.

    I do hope its a significant increase and that they actually start shipping some of it to Japan because it is impossible to buy a Switch over here.
     
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  9. tongue_of_colicab

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    OTOH with 1.4 billion people you can have brand recognition in the single digits and still reach more people than the largest countries in Europe.
     
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  10. Pixel

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    I think you forget that most Chinese still earn incomes a fair bit below the US federal $7.25 minimum wage. In 2014 the average wage in China was $3000 a year. However looking at only the large urban cities it averaged $4500. These averages have probably risen somewhat in the past 3 years though certainly not significantly. Only ~150 million upper middleclass have the financial breathing room to get one. Popculture in china is totally surrounding the PC and mobile scene. You want to play games with your friends.
     
    #10 Pixel, Oct 6, 2017
    Last edited: Oct 6, 2017
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  11. Entropy

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    Digitimes and Nintendo has told matching stories regarding production. Being that Nintendo initially targeted a 20 million volume for their first year but got cold feet and drastically cut that back to 10 million which was the number they talked about publicly. Given the consumer interest they tried to increase production, but ran into component shortages. However, Nintendo could apparently eventually secure supply, and promised increased production come autumn. And here we are.
    Two million per month may well be what the supply chain can get out the door for the holidays, but the article also says 20 million annually so I would’t assume this to be a production hike local local to the Holidays. What the article says about regional distribution can’t be as reliable as that which relies on sypply chain sources. Those decisions are made by Nintendo based on rather short term market observations and forecasts, supply chain sources can’t have the inside track regardless of their production info.
     
  12. bunge

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    Yeah but you can’t stock a country that size efficiently and reach your small percentage of users. It’s messy.
     
  13. bunnybug

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    digitimes is not a good source, they been saying 20 million since 2016, while nintedo has denied those numbers in there annual reports.
     
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  14. Silent_Buddha

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    Well, it'll be easy enough to see with the holiday months coming up. If sales go up significantly, then they've increased production significantly.

    If they didn't try to increase production with the holidays coming up then they'd be incredibly incompetent as businessmen. If they tried to increase production but weren't able to, they'd be incredibly incompetent at procurement from their suppliers.

    Regards,
    SB
     
  15. mpg1

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    2 million a month seems like a lot...that would be 24m/yr...

    They sold 4.7m units in 1st four months. With 2.7m in the first month and 2m in the following 3 months(~666,000 units a month).

    It was definitely under-supplied for a while. I know here in Canada it seems in the last month or so it has become more readily available.

    So 2 million sounds a bit much. Even if they sell 1 million a month from July->Dec that would be 10.7m units total for 2017.
     
  16. Shifty Geezer

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    The numbers do seem off in that report. Nintendo are saying they're still on for 20 million this year, but are increasing supply. How can they be increasing supply but not increasing their forecast? Then we have other reports saying the plan was 10 million units. the 2M/mo is likely ramping up for Christmas I imagine.
     
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  17. mpg1

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    I am very sceptical of 20m in 10 months...my impression is that it is doing really well in traditional Nintendo markets(Japan, U.S, Canada etc.) but not a global phenomenon. I could be wrong though.
     
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  18. Shifty Geezer

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    It's nothing like 20 million in 10 months. That'd be record breaking. All reports are Switch is beating PS4's sales record in Japan, but nowhere else. If it was selling that well, we'd be hearing about it! Even when it's outsold PS4 in NPD, it's only been by a small margin. There's no source for the 20 million prediction. I think that's misinformation and has never been the forecast. eg.

    https://www.theverge.com/2017/4/27/15447342/nintendo-switch-sales-forecast-earnings-2016
     
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  19. mpg1

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    I'd predict they'll sell ~11 million units by the end of Dec.
     
  20. BRiT

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    Where are they at as of end of August 2017?
     
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