Nintendo Switch

Nintendo Talks About The Ongoing Nintendo Switch Stock Shortages

There are parts of the world where getting your hands on a Nintendo Switch console can be quite a difficult task. Japan, in particular, is suffering badly with queues of thousands of people that can often be seen waiting in line to win the chance of buying one. Nintendo is certainly aware of the situation. Thanks to a recent interview hosted by Japanese newspaper Mainichi, Nintendo addressed the situation and reiterated that the shortages are happening due to a number of factors; the factories that make the parts have a big demand from others like Apple and also that Nintendo didn’t factor in just how popular the new console would be.

Mainichi: It’s been half a year since the Nintendo Switch launched, why (are the shortages are still ongoing)?

Nintendo: We have never expected the Nintendo Switch to sell this much. You have to understand Nintendo doesn’t own the factory (making Nintendo Switch), as production is handled by another company in China. It’s easy to increase the production capacity of the factory. The finished product needs to be delivered from the harbor to the rest of the world, and rushing shipping is an extremely difficult thing to do.

We must also increase orders for parts that are made by many other different companies, and these are the same companies that also supply components for Apple’s upcoming iPhone, data centers, and many other products. Because of this, it’s difficult for these companies to guarantee timely delivery of our orders, hence production falls behind schedule.

Source / Via

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31 comments

  1. It’s the scarcity strategy. They make us want what we can’t get. They predicted that they would sell 2mill+ at the end of March, and that was what they did. In Norway there’s always an online store with some Switches in stock. And don’t come with the “Norway is a small country” . We’re the country in the world with most purchasing power. And don’t come with the “You guys in general aren’t into Nintendo”. The post-service in Norway almost crashed the release weekend, and Scandinavia in general have had big demand for the console — even reported by MNN.
    The stock shortage is a strategic move.

    Liked by 1 person

    1. while it may seem like a marketing tactic like the short selling of the NES Classic and SNES Classic, i honestly believe them when they say they can’t make them fast enough. in japan they are out-selling PS4 in it’s first 6 months by more than DOUBLE. no one could have predicted that.

      https://www.forbes.com/sites/olliebarder/2017/09/04/in-japan-the-nintendo-switch-sold-more-in-its-first-6-months-than-the-ps4-did/#4a07593c1d02

      Liked by 7 people

      1. Come on. Nintendo have done this kind of thing since the 80′. Why is it always them? Fair enough PS4 was kind of hard to get at once, but nothing like this. They ALWAYS say this. I don’t have inside-information, and I know they’re supposedly fighting Apple for chips, but it’s always them. They does it with the cartridges back in the day, N64, Wii, Amiibo, NES/SNES and they’re saying the same thing time and time again. And again: we have plenty here in Scandinavia. Why is that? And they’ve said now that every Japanese that orders one will get one within a month.

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    2. That’s pretty weird since most parts in the us barely have switches in stock, you also stated that there a lot in your country why are you just stating this now also what website my friends want some, also it was quite stupid to for them to think a hybrid system wouldn’t sell much where they going for a typical Wii U fiscal

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      1. Well I guess your right you might as well buy off a scalpher, there always ebay though buying the set separate might be the best bet for most of my friends since The shortage is crazy in the us

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    3. At this point, it’s insane to think they do this on purpose. There is demand for at least twice as many switches as they sell in Japan. That rapidly growing install base could have been the difference between success and failure. If those people can’t get a Switch now, they might decide to buy a PS4 instead, or just skip it altogether. There are also rumours about Sony planning to reveal a competing handheld soon, and if that is true, these missed sales opportunities would be a nightmare for Nintendo.

      Liked by 6 people

      1. Nintendo have predicted to sell 16 mill console this fiscal year, and they’ve said, even before the release, that they were ready to ramp up the production if needed. And they have multiple times said they’re going to ramp it up, and not just lately. Since the release they’ve said so. And why do we have so much stock over here? Same with Amiibo. We got quite the stock here while US didn’t get anything and Ninty blamed the Port Strikes, and when the Strike ended it didn’t get much better of what I’ve heard. They’ve done this time and time again.

        But as you say: I just might be insane :P

        Liked by 2 people

      2. Even if the PS handheld-rumour is true; Nintendo won’t loose sale unless it’s actually taking a bite of the cake. And don’t forget how arrogant Nintendo has been through the ages. They can be pretty cocky, so I don’t think they’re afraid of Sony within the dedicated handheld marked.
        And if Sony were to announce a new handheld, it’s just to “crank up” the production, so they can give the then overhyped crowd (because of the scarcity strategy) all the Switches they want. That’s a great way to dry out the potensial buyers for competitive systems. If Switch is in stores right before the PS handheld, many people wouldn’t have enough money to buy both systems.

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      3. Even if the PS handheld-rumour is true; Nintendo won’t loose sale unless it’s actually taking a bite of the cake. And don’t forget how arrogant Nintendo has been through the ages. They can be pretty high on themselves, so I don’t think they’re afraid of Sony within the dedicated handheld marked.
        And if Sony were to announce a new handheld, it’s just to “crank up” the production, so they can give the then overhyped crowd (because of the scarcity strategy) all the Switches they want. That’s a great way to dry out the potential buyers for competitive systems. If Switch is in stores right before the PS handheld, many people wouldn’t have enough money to buy both systems.

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    4. They’re not limiting the stock on purpose, and to think that is strange. All evidence points to difficulty acquiring the components. This has popped up repeatedly, from many sources, most of which are reliable. While it’s true, a stock shortage could be strategic, you’ll note that peripherals produced for Switches are much easier to find. Even at their worst times, you can usually find Joy-Cons of some color, Pro Controllers, and games. If they were limiting console stock, they’d limit some of the other “must haves” too, to get more bang for their buck.

      Nintendo *has* been making consoles since the 80’s, but they’ve never had to compete with a company as powerful as Apple is right now for hardware components. Also, the NES and SNES Classic Editions were announced as limited release, and the NES Classic received new stock that wasn’t intended as a response to the demand. The Switch was never announced as limited release, and has received as many restocks as Nintendo could pump out. They’re a smart company. Limiting the release of a full console, that has no limited edition/release/launch/etc. announcements isn’t their plan. It’s also important to note that Nintendo has repeatedly said, “We’re attempting to increase production,” prior to another announcement of, “We’re having trouble acquiring the necessary components in the quantity necessary to increase production.” Why would they say, “We’re getting more stock soon!” and then double back on that almost immediately multiple times if it wasn’t an actual production issue? If they were doing limited release for the Switch, they’d hype up each shipment, and do interviews about new shipments, like they did with the NES Classic.

      Liked by 4 people

      1. Quite nice post there :) I like your logic.
        I would presume the accessories is

        1. Not as popular as the console it self, which is somewhat costly as it is, and the accessories are expensive(I’m not talking about the value you get for your money).
        2. It’s so lucrative they just can’t keep themselves from holding accessories back.

        I stated that with Apple earlier here, and yeah. It’s possible. But it’s always them. And don’t forget: Actions weights more than words. Why can they stock us up, but not anywhere else? Sounds fishy to me. Nintendo themselves can lie about the situation. I don’t have evidence about this claim in this particular incident, so that’s just speculation from my side, and some here said my way of thinking is insane so… yeah :P

        I probably didn’t answer all of your aspects here, sorry. I don’t say you’re wrong. I could be dead wrong, but I don’t think anybody can’t deny that what I say might be true.

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      2. Haha, yeah. Nintendo has been. I was thinking Nintendo = They since it’s a lot of people there. You could probably find a lot more errors than that xP I failed my English exam once here in Norway, so I know I’m not as good in the language as I should be. Thank you for pointing it out for me :)

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    5. Absolute nonsense. In video game platforms, the money is not in hardware sales, it’s in license fees for 3rd parties releasing games on your platform. The way you get 3rd parties releasing games on your platform is to have as large of a player base as possible for them to sell games to. This means you specifically want higher adoption counts, as early as possible so those 3rd parties start making games as soon as possible, because consoles have a limited lifespan and every year you waste is one you aren’t getting back before you have to blow hundreds of millions on a new platform.

      This is why every company who can afford to (sony and microsoft who are subsidized by being larger multi-division companies), sells at a loss per unit and purchases equipment in absurdly large quantities. They don’t give a crap about making money on PS4’s. They want you to have it in your living room to sell you as a customer to EA.

      “Come on. Nintendo have done this kind of thing since the 80′. Why is it always them?”

      Because Nintendo isn’t a large multi-division company. They can’t afford to sell the console at a loss, order in large quantities, or be important enough to manufactorers to get Apple projects bumped in favor of making more Switches.

      “we have plenty here in Scandinavia. Why is that?”

      Aren’t you disproving yourself? If they were deliberately shorting supply, there wouldn’t be plenty in Scandinavia. In reality, demand varies from region to region. Since I had to cancel my preorder, it took me the better part of a month to find one in the Seattle area. We took an unrelated road trip to eastern washington and they were all over. Why would you assume demand is universal when demographics aren’t?

      Liked by 1 person

      1. *There are bound to be a lot of errors in my spelling and grammars here*
        Well, what you’re saying sounds like a really strong argument indeed. My comments are my own speculation, so they could be wrong, absolutely. I just don’t think they are lol :P

        Well, indies are quite fond of Switch, but the developer “Gears for Breakfast” said they couldn’t get in contact with Nintendo about publishing their games. He/they speculated that it’s going so well with Switch they’re starting too cut down on the third party support – at least on indies.
        EA stated back in the Wii-era that “It’s usually only Nintendo games which is profitable on Nintendo consoles”(something like that), so I get the picture Nintendo don’t always quite pay enough attention to third parties(Wii U). But as of now, there aren’t many third party AAA-titles on the Switch(some of course). They’re coming later like FIFA, Skyrim, Rocket-League, Steep(delayed for the same reason as Watch_dogs on Wii U I belive). Maybe because Nintendo have planed to step it up for real after this shortage-hype, when people have burned into their minds that the console is rare. Maybe?
        Or maybe they want to earn easy profit from SNES Mini and other merchandises before they gets Switch swoops the market? Speculating only, and pulling it faaaaar, I know.

        I don’t really buy that Apple vs. Nintendo thing. Yeah, I know it’s publicly stated that it’s the reason, but I kind of feel that maybe, since they’re such good friends nowadays that Apple lets Nintendo use them as the reason for the shortage? Speculating only. On the other hand did Mario Run just disappear from iStore, so maybe they’re really fighting? Haha I should stop now lol
        Nintendo earn money on every Switch though. That’s stated here on MNN. But I guess you ment like the bread and butter when you said licensing, and not the coins between the coach pillows with console sales :P It’s about 200 NOK profit for the Norwegian retailers at 3490 NOK I understood.

        That about disproving myself:
        Yeah, absolutely. From one perspective I could disprove myself. I could be too general and don’t distinguish the demographics from each other, and then my argument would fall apart. But as I commented: Scandinavians do have other buying habits. Like Norway is on the top of buying modern/the newest electronisk in Europe:
        https://www.tu.no/artikler/nordmenn-mest-teknokate-i-europa/238624
        (yeah, it’s 6 years old). They could have tried the scarcity strategy here and failed maybe :P ? But evidence points to the opposite. It sells well here.

        What I really think there is that Bergsala and Nintendo have another business practice than NoA and NoJ. I think that we Scandinavians, who pays a lot for our Switches (380-440$ as documented in another reply here), gets enough supply to cover the market’s need, and probably a big accessories buy-ratio as well. And ergo I think they can keep the production up if they want, and holding it back elsewhere. OFC Scandinavia is nothing compared to the States in share numbers, but we have a lot of purchasing power, so don’t think the sales are too low here. But then I again I can’t prove it. And can’t base the argument alone on that. I just find it so hard that it’s always Nintendo. And they just cancelled my Pkmn Silver and Gold 3DS boxes today :(((

        One here stated that this is insane to think, so I just might be that :P But I really liked your argument. It’s not a fanboy outburst, but a well educated comment. You have my respect :).

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      2. I have a reply for you, but it’s being moderated at the moment :P I wrote so much there’s probably something wrong with the comment :P I’ll try to edit and re-post it if it doesn’t get through.

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    1. An addon hardware for the Switch? Well it’s possible, because Lord Kimishima says on an interview they’re focusing on software and hardware not specifying what hardware they are refering.

      Liked by 1 person

  2. after the failure of the wiiU of course Nintendo is going to be conservative with launch numbers. after they flew off the shelf Nintendo revised their sales projections and boosted sales production. it has sold more Switches in Japan in 6 months than it took for PS4 to hit that same number in over a year. fastest selling console of all time. they would be selling more if they had a crystal ball.

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    1. Target is the only place I ever see Switches on the shelf and I do see the neons at times. Mine is a bit out of the way and I’m usually in early mornings but maybe people just don’t think to check Target.

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  3. They better have a good million or two ready for Dec lol … If people want them come to the UK there’s loads for sale new and second hand lol

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