The latest report on the Switch’s stellar success comes from the Financial Times. The console is still in short supply worldwide with many fans continuing to struggle to find devices for sale.
Although it may seem a while away, Nintendo is getting concerned that it won’t have enough consoles to go around this holiday. After doubling production in March, the company is taking it up another level to make sure every store is well stocked by December.
The Switch is still selling out within hours of reaching shelves. Analysts are comparing the console to the original Wii, Nintendo’s last device to suffer from holiday shortages right back in 2006. The Switch is aiming to win over the family customers who were convinced by the Wii, implying demand should be very strong this holiday.
In recognition of this, Nintendo has reportedly ordered 18 million Switch consoles to be supplied for the 12 months ending in March 2018. This reflects optimism from analysts, executives and the media that it could on to be a chart topper in December, boosted by the launch of anticipated games coming in the later stages of the year.
Nintendo is apparently concerned that there might be “customer tantrums” after the launch of [i]Super Mario Odyssey[/i] in November. For the first time in years, it’s facing long-running stock shortages that could see players able to buy the game but not the console to play it with.
Nintendo itself is refusing to confirm reports speculating on its plans for Switch production. The company denied it has revised its shipment guidelines to 18 million. It told the Financial Times that it’s still using its official target of 10 million devices. Despite this claim, the company has failed to convince analysts that it’s not looking at a substantially higher number. Some have predicted that shipments could end up reaching as high as 20 million consoles in the timeframe.
It isn’t clear whether Nintendo’s manufacturing partners will be able to shift their production to meet the new schedules. Suppliers will be under intense pressure to build and deliver critical components, some of which are already in short supply globally. Problems in sourcing memory modules, storage drives and LCD displays could ultimately prevent Nintendo from producing as many Switch units as it would like to.
With demand still high worldwide, there’s clear motivation for the company to tell its supply chain to prepare for full capacity though. It looks as though stock will be in short supply throughout the summer months, allowing new side markets to appear in key market regions like Japan.
Switch customers who have reserved a “guaranteed” delivery in the next shipment to physical retailers are selling their confirmations online. Desperate fans are eager to “buy” a reservation at prices of up to $125, creating a lucrative market. With Nintendo still a long way from obtaining a well-stocked supply of consoles, these online trades are likely to continue flourishing throughout the year.
