Nintendo Switch

Nintendo President Talks About Switch Stock Levels And Ramping Up Production

The Nintendo Q2 financials Q&A is now available in English and it makes for an interesting read. One of the things highlighted within it was the lack of Nintendo Switch stock for eager consumers and how Nintendo plans to go about ramping up production now and towards the end of the year. Here’s what was said:

Nintendo Switch sales have been favorable since the beginning for both hardware and software, but it remains difficult to purchase the hardware, and now ahead of the holiday season it seems that inventory levels are unusually low. What are your thoughts at present about what the bottlenecks are in the production system, and what are you thinking about ways to increase or decrease production volume in the future?

Kimishima: Even though the Nintendo Switch launch was in March (and not during the holiday season), we had planned at the start of this fiscal year to ship 10 million units of hardware by the end of March 2018, based on our understanding of the high level of interest from so many consumers Six Months Financial Results Briefing for Fiscal Year Ending March 2018 Nintendo Co., Ltd. before the launch. The 10 million target was a very high figure, and we simply didnʼt think such a high-volume sales target was easy to meet. However, weʼve continued to receive favorable consumer response after launch and inventories remained low, and I think we must own up to the fact that our initial projections were too conservative. The Nintendo Switch system itself is made from a huge number of components, and weʼve made urgent requests to many of our contract manufacturer to ramp up production, with some of them even installing additional production lines. We released yesterdayʼs upwardly revised full-year hardware shipment target of 14 million units because we now project that we are capable of shipping that many units. This 14-million-unit shipping target for the full year means that we plan to ship roughly 10 million units just in the second half of this fiscal year, and production at this pace would manufacture even more than that. For instance, just splitting those 10 million units across six months translates to over 1.6 million units shipped per month going forward, with the production capacity being more than that. I think you can tell from recent Nintendo Switch sales trends that shipments are improving. I think we are ready and able to deliver Nintendo Switch to our many consumers around the world this holiday season.

Source

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11 comments

  1. If they’re able to deliver 1.6 million units in both November and December, that should satisfy holiday demand. If 3.2 million doesn’t do it for the holiday, that just means there will still be strong demand in the Spring (which is traditionally a slow period).

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  2. I just hope they’re also working on updating Switch for HDD support and increasing Cartridges size to 64GB plus dropping it’s prices for lazy ass devs to just cramp their whole heavy games into it and quit their bitching about hard work because making games is not even remotely easy and never will be. You can try to ease it but it still requires work.

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    1. They’ve talked about the HDD-thing. And they respond with the usual answer: “It’s a hybrid console”. It is serious the new “Please understand”.
      I don’t see why 64-128GB wouldn’t appear? Yeah sure it will cost a few bucks to produce it (people must not compare store prices — it’s not the same!), but if it do… so what? 1-10 bucks extra for a game shouldn’t be a problem for games like Skyrim and stuff.

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