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[oti]

I don't have to show you with math, but obviously the numbers work otherwise Nintendo wouldn't be doing it.

I see. This is one of those "I don't care about facts, I care about what I FEEL is right" things. Well then.

 

[Terrell]

I mean it isn't just conservative shipping. Seriously read that book. It's a fact that they consistently intentionally undershipped the NES to retailers to generate buzz. People don't just pull these assumptions out of their asses, it's speculation based on their known business tactics in the past.

Even leaving aside the questionability of that book's account... it's speculation based on their known business tactics from 30 FUCKING YEARS AGO.

They're now on their 3rd president (who, contrary to belief, did not have Yamauchi's and Lincoln's business stratagem written over their own sense of how to do business) and a wildly different market landscape. It's a pretty safe bet that their business strategy has changed since the 80s, like it has for every company in all of creation that still exists.

I don't have to show you with math, but obviously the numbers work otherwise Nintendo wouldn't be doing it.

Yes, because corporations never have bad things happen to them to ruin their best intentions. Nope. Never.

 

[tebunker]

I don't have to show you with math, but obviously the numbers work otherwise Nintendo wouldn't be doing it.

Except that, you know, they aren't intentionally doing it.

That's the point, you believe make believe fairy tales, others have experience in supply chain, finance and actual corporate decision making, but please keep whatever pseudo narratives you want in your head.

Those of us that understand what goes in to sourcing, planning/forecasting, MFG & shipping from China, and on top of that the business models and financial decisions that actually drive real business, will nod and note that Nintendo is struggling here to get enough product made and shipped. They didn't willfully put themselves in a shitty situation and the spreading of this lazy assed narrative has to stop.


Now if you want to speak to what was talked about in that book, in the 80's Nintendo used a Rom chip shortage to screw over third parties while conveniently shipping their own games. It's part of why they burned everyone so bad and why so many were willing to run away. This doesn't translate to fake hardware shortages to up demand.

 

[funkystudent]

Ya know. Even if they could release it day and date with PS4 and 3DS, maybe it makes sense for Dragon Quest XI on Switch to be held back until Nintendo gets it shit in order.

 

[oti]

Ya know. Even if they could release it day and date with PS4 and 3DS, maybe it makes sense for Dragon Quest XI on Switch to be held back until Nintendo gets it shit in order.

Nintendo can't just build five new factories to meet demand.

 

[RevolutionizeTheGame]

That's how I got a Wii in 2007. They had a stock of 100 and would reveal names about ever 30 minutes. After an hour or two my dad got tired of waiting and said if we didn't win we'd leave. That's when we got the chance to purchase a Wii for $249.99. Ironically, it was easier to get a Wii than it was for me to get a Vita in summer 2014.

 

[Cathcart]

I know it's not the same thing exactly but what about the nes classic mini.

If I was a shareholder I would damn well want to know why these things aren't being made still.

If you were a shareholder you'd likely just be demanding Nintendo dump the Switch and make mobile games.

 

[Oregano]

Ya know. Even if they could release it day and date with PS4 and 3DS, maybe it makes sense for Dragon Quest XI on Switch to be held back until Nintendo gets it shit in order.

I imagine Nintendo will have their shit in order by at least a week before DQXI's launch. Actually I wouldn't be surprised if the Switch outsells PS4 and 3DS combined on the week of DQXI's launch.

 

[Papacheeks]

It's not good business to temporarily ramp up production

What you do is try to stockpile for launch and then your production should match demand.

Switch had biggest launch in their history. So... Yeah.

They are failing to ramp up now, and its costing them.

Hence their launch history, they shipped globally. PS4 didn't ship globally and shipped more.

They seriously did not make enough for launch, and didn't have ramp up setup correctly. They had shit tons of time, they bowed out of E3 2016 and only had zelda mostly to show. They waited till 2017 to reveal the switch.

That's on them in not preparing, just like they did with NES classic.

They are totally inept at doing console launches correctly. It's either one thing or the other with them. The fact that controllers are even hard to get is a big issue. And the way they are promoting them with different colors makes me believe they want you to collect them. But if you can't even get those out in good numbers than how do you expect them to even launch this console right.

They fucked up and in a big way. They are not hitting that 10 million number if they can't get these supply issues figured out with these parts. And I don't see it changing anytime soon. Christmas is going to hurt them bad, people will be sick of not being able to get one and buy something else. And right now PS4, xbox's are 249.99 and will be cheaper during Christmas.

So now is the time to get these issues resolved to some degree.

 

[Golgo 13]

Crazy stuff. I wouldn't have imagined that it's even harder to get one there than it is in the US.

You can pretty easily get one in the US, you'll just have to go through scalpers on Amazon and EBay be willing to pay $400-$500, which I'd personally never do out of principal alone.

 

[big_erk]

I wonder if Nintendo will eventually eat some profits to push more of these out. I can't imagine these parts shortages will get any better with the holidays.

How do you even solve a problem like this?

Apparently they already ate into profits to ship a bunch of Switch units air freight.

Nintendo shipped Switches by airplane to meet red-hot customer demand

 

[MrCunningham]

Supply shortages and long line-ups... typical Nintendo launch window.

 

[Cerium]

Apparently they already ate into profits to ship a bunch of Switch units air freight.

Nintendo shipped Switches by airplane to meet red-hot customer demand

That probably only contributed to the shortages we're seeing now though. They took units meant for later and shipped them immediately.

 

[big_erk]

That probably only contributed to the shortages we're seeing now though. They took units meant for later and shipped them immediately.

That's true, but the point was they were willing to take a loss to satisfy immediate demand. If they had a way to meet the current demand I'm pretty sure they would.

 

[Daedardus]

Hence their launch history, they shipped globally. PS4 didn't ship globally and shipped more.

They seriously did not make enough for launch, and didn't have ramp up setup correctly. They had shit tons of time, they bowed out of E3 2016 and only had zelda mostly to show. They waited till 2017 to reveal the switch.

That's on them in not preparing, just like they did with NES classic.

They are totally inept at doing console launches correctly. It's either one thing or the other with them. The fact that controllers are even hard to get is a big issue. And the way they are promoting them with different colors makes me believe they want you to collect them. But if you can't even get those out in good numbers than how do you expect them to even launch this console right.

They fucked up and in a big way. They are not hitting that 10 million number if they can't get these supply issues figured out with these parts. And I don't see it changing anytime soon. Christmas is going to hurt them bad, people will be sick of not being able to get one and buy something else. And right now PS4, xbox's are 249.99 and will be cheaper during Christmas.

So now is the time to get these issues resolved to some degree.

Do you actually know how you setup a production line? You first need to have the available space for the extra line, which requires plant layout management. Then you need to put in the order for costly, big machines, which although already designed, cost weeks to month to manufacture depending on supplier schedule. Machines then need to be shipped, installed, regulated and tested. Whole process can take up several months.

Not doing anything at E3 has zero things to do with this. You can't prepare for this, you put in an order or you don't , depending if you need the extra capacity. And if you guess wrongly you waste space, money and other resources producing stuff you can't sell.

 

[Permanently A]

Looks like its time for Nintendo to go third party, they clearly can't handle production on their own.

 

[panama chief]

is there a reason they arent trying to get it from other regions?

 

[Zedark]

is there a reason they arent trying to get it from other regions?

Price: the Japanese price is very affordable compared to foreign prices: buying a European unit, for example, already costs a third more in Japanese yen (330 euro = 41k yen) than the domestic units do, and that is without shipping.

 

[dracula_x]

Japan as usual same was for PSVR, btw

→ https://www.cnet.com/news/you-actually-need-to-win-the-lottery-to-get-psvr-in-japan/

 

[TalentAlwaysWins]

Japan as usual same was for PSVR, btw

→ https://www.cnet.com/news/you-actually-need-to-win-the-lottery-to-get-psvr-in-japan/

Oh wow this is a phenomenon

 

[i-Jest]

Switch X Yeezy

Lololol

This comment tops anything else in the thread.

 

[spekkeh]

Do we actually have any sales data on PSVR? (apart from the ~1 million sold after six months). News reports are either selling much better than expected or selling much worse than expected, but without any sales perspective. This was in January. Do people line up still?

 

[Vena]

Japan as usual same was for PSVR, btw

→ https://www.cnet.com/news/you-actually-need-to-win-the-lottery-to-get-psvr-in-japan/

Oh wow this is a phenomenon

No. They shipped nothing.

PSVR has had comically low shipments to Japan. They don't even occur with any regularity, that whole thing is quite the mess.

 

[Papacheeks]

Do you actually know how you setup a production line? You first need to have the available space for the extra line, which requires plant layout management. Then you need to put in the order for costly, big machines, which although already designed, cost weeks to month to manufacture depending on supplier schedule. Machines then need to be shipped, installed, regulated and tested. Whole process can take up several months.

Not doing anything at E3 has zero things to do with this. You can't prepare for this, you put in an order or you don't , depending if you need the extra capacity. And if you guess wrongly you waste space, money and other resources producing stuff you can't sell.

Then how did they do it for Wii U? They did not have supply issues regardless if the unit sold well or not. Same with 3DS.

They did not prepare for this just like NES classic.

 

[n0razi]

Is there really a shortage? I see tons of unopened ones listed for under retail on ebay

 

[Aostia]

No. They shipped nothing.

PSVR has had comically low shipments to Japan. They don't even occur with any regularity, that whole thing is quite the mess.

As usual, double standards to put nintendo under a positive light, eh, Vena?

/jk

 

[Spyder_Monkey]

Then how did they do it for Wii U? They did not have supply issues regardless if the unit sold well or not. Same with 3DS.

They did not prepare for this just like NES classic.

Both products were overshipped and it ended up costing them more than undershipping the Switch.

 

[kIdMuScLe]

Then how did they do it for Wii U? They did not have supply issues regardless if the unit sold well or not. Same with 3DS.

They did not prepare for this just like NES classic.

They overproduced the Wii U thinking it was gonna be a hit like the Wii... they stopped production months after it launched. So they went years without producing new Wii U's and in fact they had to buy back stock from retail store.

Geez I wonder why they had a conservative launch for the switch

 

[ggx2ac]

Why would they hold back stock? Keeping stuff in a warehouse costs money but doesn't earn a dime. One of the basics of good business is to never hold onto excess inventory if you can avoid it.

They technically are holding stock in inventory with regards to the special editions of Monster Hunter and Splatoon 2 themed Switch consoles seeing as they can't release those until the game releases.

 

[Loxley]

"...But we have plenty of the Switch's faithful side kick, the Wii U, in stock!"

 

[Kintaro]

Christmas is going to be awful for people wanting Nintendo stuff. It never fails it seems.

 

[JetSetRadio]

I'll trade for a real psx. Zelda and kart included.

 

[ggx2ac]

Then how did they do it for Wii U? They did not have supply issues regardless if the unit sold well or not. Same with 3DS.

They did not prepare for this just like NES classic.

Your daily reminder of what the consequences were for Wii U on the manufacturing side of things from being overstocked in retailers and not selling.

http://m.neogaf.com/showthread.php?t=1300559

While the original Wii, launched in 2006, became a huge hit with sales of 101 million units, its successor Wii U was a flop -- with mere 13 million units sold.

Nintendo did not suffer alone, though. Renesas Electronics, the manufacturer of Wii U's key semiconductors, also took a hit, and the Japanese chipmaker has continued to struggle with the negative legacy of this failure
The chipmaker had already made a fortune on the triumph of the original Wii, and management highly expected the Wii's successor to further benefit the company.

Hopes were high that production lines would be maxed out with the debut of Wii U. However, optimism quickly turned to disappointment after Wii U was launched in December 2012. Urged to raise the operating ratio of production lines at the Tsuruoka factory, the chipmaker "was obsessed with getting as many orders as possible, regardless of profitability," according to a former Renesas employee.
The manufacturer received large-lot orders for automotive semiconductors, which typically come with the burden of having to supply parts over the long term. These loss-making orders continued to affect the bottom line even after NEC Electronics was consolidated into Renesas Electronics in 2010, said the former employee.

As part of restructuring, in 2013 Renesas stopped supplying chips to the gaming and smartphone market, where demand is often volatile. The Tsuruoka plant, once the key production site for Nintendo consoles, was later sold to Japanese electronics makers Sony and TDK separately.

http://asia.nikkei.com/Business/Comp...f-failed-Wii-U

More in the article linked.

 

[LizardKing]

It's so weird that Switch is selling like hotcakes and basically sold out everywhere except Australia/NZ. Why is that Australia GAF? To expensive? Just over-shipped the market? Nintendo is niche? Just curious.

 

[DrDomVonDoom]

"...But we have plenty of the Switch's faithful side kick, the Wii U, in stock!"

"OHHHH these indies.....I gotta get the source code from the devs"

"What are you doing playing my indies? PUT THE INDIE DOWN! NOW"

 

[boltz]

I was one of the doubters regarding the Switch being a sales success, so it is crazy to see it still being hard to get in most places. A pleasant surprise for the gaming industry.

You can pretty easily get one in the US, you'll just have to go through scalpers on Amazon and EBay be willing to pay $400-$500, which I'd personally never do out of principal alone.

I wonder how much inventory is in the hands of scalpers alone.

 

[Etria]

It's so weird that Switch is selling like hotcakes and basically sold out everywhere except Australia/NZ. Why is that Australia GAF? To expensive? Just over-shipped the market? Nintendo is niche? Just curious.

From my understanding, it's primarily a combination of being priced relatively more expensively compared to PS4 (Pro) and XBox One, and Nintendo being less mainstream than the other two. To be fair, the Switch is priced lower than what the Wii and Wii U were initially sold for, but in today's market, it's tougher to convince people to purchase a more costly console rather than one of their competitors'. This might change once Pokemon ends up on the Switch, as 3DS was hugely popular once X & Y hit, but it will likely remain niche for the foreseeable future. I guess it's nice that we don't have to worry about fighting to get our hands on one, but it's the sad reality imo.

 

[Square2015]

They still haven't breached 1 million sold (/shipped) yet.

 

[Basslover]

Nintendo really needs to distribute in a better way the Switch stock. In my country (Chile, Latin America) there are Switch nearly everywhere, we even have some BoTW Special Editions scattered on some shops yet. I hope Japan gets to buy the console normally at some point.

Yep saw a couple inParis (for us gaf I mean a store not the city) today.

 

[Pepboy]

Still not sure if Nintendo does this on purpose to drive up demand or not, but man it sucks either way.

No company would intentionally restrict supply to the point where they have to airship quantities. They didn't know how big demand would be and didn't want to produce too many like with the WiiU.

 

[LizardKing]

From my understanding, it's primarily a combination of being priced relatively more expensively compared to PS4 (Pro) and XBox One, and Nintendo being less mainstream than the other two. To be fair, the Switch is priced lower than what the Wii and Wii U were initially sold for, but in today's market, it's tougher to convince people to purchase a more costly console rather than one of their competitors'. This might change once Pokemon ends up on the Switch, as 3DS was hugely popular once X & Y hit, but it will likely remain niche for the foreseeable future. I guess it's nice that we don't have to worry about fighting to get our hands on one, but it's the sad reality imo.

Thanks for the explanation!

 

[Technosteve]

i should sell my switch when i go to japan in july

 

[Skittzo0413]

Since we're talking about global supply constraints and sales do we have any unofficial numbers for sell through for the full 3 months? I know after 1 we had 2.74m, and after 2 I'd estimate 3.5-3.75m. Any ideas for the third month?

 

[electricpirate]

Had to come to Nintendo NYC before 10am to get one. I guess it is still pretty lucky than having to do lottery tickets.

I'm planning to do that, how early did you have to arrive?

 

[SolidChamp]

They can get some from Hong Kong.

You know this for a fact? Warehouses in HK have supply that's ready to ship here to Taiwan?

 

[Segnaro]

That's on them in not preparing, just like they did with NES classic.

I was always under the impression that the NES Classic was intended as a Limited Edition Holiday item.

 

[SolicitorPirate]

It's so weird that Switch is selling like hotcakes and basically sold out everywhere except Australia/NZ. Why is that Australia GAF? To expensive? Just over-shipped the market? Nintendo is niche? Just curious.

I'm not entirely sure that's the case. At least in Sydney, I still regularly see Switches and Switch Accessories out of stock. We have gotten stock of games in order; there was a time that it was basically impossible to find BotW in stock

 

[Tamanator]

I'm not entirely sure that's the case. At least in Sydney, I still regularly see Switches and Switch Accessories out of stock. We have gotten stock of games in order; there was a time that it was basically impossible to find BotW in stock

Pretty much. It's not impossible to find one to pick up if you really want to in Australia, but there's not shelves filled with either. I think it's a case of supply just managing to meet demand.

This isn't surprising. Aside from the Wii, Australia has always been a Sega and then a Sony country predominately.