WSJ: Nintendo Shipped Switch Consoles by Plane to Quickly Meet High Demand

Status
Not open for further replies.

ggx2ac

Member
Apr 5, 2016
7,164
0
370
Credit to Passose for bringing it up.

Link: https://www.wsj.com/articles/nintendo-shipped-switch-consoles-by-plane-to-quickly-meet-high-demand-1493619178

TOKYO— Nintendo Co. NTDOY 5.62% said it used aircraft to ship its new Switch videogame machine in its first month on the market, an unusual and costly logistics measure responding to unexpectedly high demand.

Earlier, Nintendo said it shipped 2.74 million units of the Switch in the month after it went on sale March 3, up from an initial plan of two million.

“We carried some of the Switches by plane in March to serve our customers more promptly,” a company spokesman said.
He said Nintendo switched back in April to less-expensive sea freight to replenish store shelves.

Nintendo didn’t say where the planes were used, but analysts and others briefed on the logistics said the flights took Switch machines to the U.S. and Europe from factories in China.

Ace Research Institute analyst Hideki Yasuda said further use of airfreight was possible because the item remains hard to find at retailers globally. “Air is a big profit-squeezer because it could cost additional ¥5,000 per unit,” or about $45, he said.

Waseda Business School professor Atsushi Osanai said it was worth the price to get the product off to a good start.

“It is important that companies sell as many units as possible, as quickly as possible, while customer interest is high,” he said. The initial months are critical for a game machine, because strong hardware sales drive interest from software creators, and a wealth of software titles in turn generates interest in the hardware.
 

Neoleo2143

Member
Dec 21, 2015
6,692
0
310
Yeah, it's pretty damn important that they get those units out now, it's crazy to see so much demand for a console that's not even for the Holiday Season. Just imagine when the machine gets a pokemon game and a Mario title in addition to Mario Kart and Splatoon 2 AND it's Black Friday.
 

L~A

Member
Jan 19, 2013
12,188
0
0
Wow, shipping stuff via air is extremely costly (well, that's already explained in the article), and generally only used for fragile stuff like flowers and the likes. Crazy they had to resort to it to ship the Nintendo Switch.

Sea freight is so dead cheap in comparison, it's not even funny (I don't remember the exact cost, but it's extremely low... there's a reason sea freight is the favored shipping method by far, not just for video game consoles but pretty much everything not persihable). Hopefully they don't need to resort to it again in the future.
 

Zedark

Member
Feb 22, 2016
5,220
0
290
That's some commitment to bringing the Switch to stores alright. Props to Nintendo I'd say.
 
Apr 10, 2007
15,235
0
0
There were major restocks into the days leading to and the day of Mario Kart launch. Won't be surprised if they sell close to 900k in the USA again for April.
 
Status
Not open for further replies.