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antonz

Banned
Oct 25, 2017
5,309
https://www.wsj.com/articles/nintendos-game-plan-to-level-up-switch-production-1510291065
TOKYO—Nintendo Co. plans to pick up the production pace for its hit Switch game console next year, people with direct knowledge of the matter said, showing the company's deepening confidence in the success of the device.

The Kyoto-based company is sketching out a plan to make 25 million to 30 million units of the Switch in its next fiscal year, which begins April 2018, and has begun informing business partners about it, the people said. They said the plan is still in its early stages and Nintendo could aim higher depending...
 

Fukuzatsu

Member
Oct 25, 2017
1,321
I doubt they'll be able to sell 30 million units next FY, but hopefully this should help alleviate the remaining supply issues.
 

Dekuman

Member
Oct 27, 2017
19,026
That is a lot of Switches. Looks like they'll easily clear 17-18 million by March 2018 with the launch sales included, probably even get close to 20m if they are lowballing that FY 14m shipment figure.

25 million next FY is doable with normal ramp up in adoption. 30 might be a reach

For reference this is the reaction in January when it was hinted Japan Display was set to produce 10 million screens this year.
 

Interficium

Banned
Oct 30, 2017
1,569
One of the funniest things to me recently is all the people in ResetEra making fun of publishers for suddenly scrambling to commit resources to the Switch, as if it was always going to be a fucking surefire home run from the word go and the companies were just too stupid to see it.

If anything the production shortages of the Switch means you can lump Nintendo in with all those other "idiot" publishers as well.

Hindsight is a hell of a thing.
 

Bitch Pudding

Member
Oct 25, 2017
4,202
Sounds like economics of scale will soon allow a price below €/$300 which would give sales some additional momentum.
 

zombiejames

Member
Oct 25, 2017
11,933
giphy0mjin.gif
 

Nav

Member
Oct 27, 2017
1,904
When does the Switch get a widespread launch in China? This move seems important for that market and others where Switch has yet to release. Especially with the Tencent partnership.
 

zoltek

Member
Oct 25, 2017
1,917
One of the funniest things to me recently is all the people in ResetEra making fun of publishers for suddenly scrambling to commit resources to the Switch, as if it was always going to be a fucking surefire home run from the word go and the companies were just too stupid to see it.

If anything the production shortages of the Switch means you can lump Nintendo in with all those other "idiot" publishers as well.

Hindsight is a hell of a thing.

I hadn't thought of that before. You make a good point. Well done.
 

ZhugeEX

Senior Analyst at Niko Partners
Verified
Oct 24, 2017
3,099
For some perspective. 30m would put it up there with peak DS years.

Here is a look at annual shipments for Wii (left) and DS (right). So you can see 30m is a ridiculously high number. PS4's peak year is 20m.

upload_2017-11-10_5-48-58.png
 
Oct 27, 2017
3,257
I mean if Pokemon hits next year, that could drive sales a lot. Also keep in mind they are launching the Switch in South Korea, Taiwan, and Hong Kong this December, they're gonna have more markets they will need to supply.
 

Skies

Member
Oct 25, 2017
2,267
For reference, the 3DS sold right over 31 million units total with two years on the market.

So Switch selling around the forecasted 14 million this fiscal year and selling somewhere between the 25 and 30 million next fiscal year would put it in the 40 million ballpark in the same time frame.
 

Fukuzatsu

Member
Oct 25, 2017
1,321
When does the Switch get a widespread launch in China? This move seems important for that market and others where Switch has yet to release. Especially with the Tencent partnership.

I don't believe they've announced anything in terms of a concrete date, just Chinese language support for individual games, and it'll be available officially in Korea and Taiwan on 1 December.
 

Interficium

Banned
Oct 30, 2017
1,569
The shortage is due to production taking a hit from shortage hitting the entire electronic industry, nothing to do with their being short-sighted

Do you have a source? Because there's been several interviews with Nintendo brass and most of them mention how demand outstripped their projections for the switch. None of them mentioned any "shortage hitting the entire electronic industry" whatever that is.
 

LightKiosk

One Winged Slayer
Member
Oct 27, 2017
11,479
Unless that game is coming out in Q4, nothing about the way they announced that screamed '2018' to me, I'll be honest.

Nintendo's fiscal year seems to end at the end of March, so if they can get it out early 2019 it's doable but that would take a miracle. Chances are they would delay it for the holiday sales.

Emphasis on the if should be noted.
 

ggx2ac

Sales Heaven or Sales Hell?
Member
Oct 25, 2017
3,504
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Fantastical

Member
Oct 27, 2017
5,370
Do you have a source? Because there's been several interviews with Nintendo brass and most of them mention how demand outstripped their projections for the switch. None of them mentioned any "shortage hitting the entire electronic industry" whatever that is.
Shortages in memory absolutely hindered Nintendo's ability to produce more units.

http://www.foxbusiness.com/features/2017/05/31/nintendo-fights-parts-shortage-for-switch-wsj.html

Anyway, there's being conservative and then porting Ultra Street Fighter II as your big game.
 

Argot

Member
Oct 29, 2017
1,153
The only way this makes sense is if they're fairly confident Pokemon is coming out next year after all.
 

Watershed

Member
Oct 26, 2017
7,818
That range seems crazy. Nintendo is aiming really high and they must have an amazing 2018 software like up planned.
 

ggx2ac

Sales Heaven or Sales Hell?
Member
Oct 25, 2017
3,504
Do you have a source? Because there's been several interviews with Nintendo brass and most of them mention how demand outstripped their projections for the switch. None of them mentioned any "shortage hitting the entire electronic industry" whatever that is.


Other than all the old articles I posted on the old forum mentioning shortages, here's a recent one:

https://www.resetera.com/threads/asia-nikkei-switch-powers-up-nintendos-full-year-outlook.2642/

The single biggest reason Nintendo has been unable to produce enough Switches is the shortage of electronic components. Amid outsized demand from makers of smartphones and electrified vehicles, the company is seeing "intermittent shortages of various parts," even transistors and other commodity-grade components, said a Nintendo procurement executive. Nintendo purchasing managers are going to emerging markets in Southeast Asia and other places in search of components, but it is unclear where the company has secured the needed parts.
 

Nav

Member
Oct 27, 2017
1,904
I don't believe they've announced anything in terms of a concrete date, just Chinese language support for individual games, and it'll be available officially in Korea and Taiwan on 1 December.

I think it also releases in Hong Kong that day. A wider release could be huge. Something like that could justify the new production plan.

Edit: corrected later in thread.
 
Last edited:

Rainrir

Attempted to circumvent ban with alt account
Banned
Oct 25, 2017
1,337
For some perspective. 30m would put it up there with peak DS years.

Here is a look at annual shipments for Wii (left) and DS (right). So you can see 30m is a ridiculously high number. PS4's peak year is 20m.

View attachment 37

I dunno how realistic this is. Even accounting for increased adoption in 2nd year, 30 million is really difficult

Unless Nintendo knows something about its software slate that we don't.
 

Fantastical

Member
Oct 27, 2017
5,370
I would hope this means they have the software to back it up. I think that would include 3rd party software.
 
Oct 25, 2017
8,617
Might be a bit too optimistic there.
Hopefully people are still into it next year as they seem.
Marketing and software output needs to be excellent like this year.
Pokémon needs to be primed and ready.
Maybe a price drop after the summer
 
Oct 31, 2017
304
Unless Nintendo is going to try make the switch big in Mainland China somehow or the switch has a drastic pricedrop, I don't see how they could sell 30 million in a year
 

DecoReturns

Member
Oct 27, 2017
22,003
Hmm. Wonder what they got planned for 2018 software wise.

Looking forward to a January(or whenever it is) direct.