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Due to demand, Nintendo used unusual and costly air freight to ship Switches faster

Frodo

Member
So that is how they managed to re-stock for Mario Kart 8 Deluxe. The price per unit sounds too high, though.

I hope this ends the artificial shortages narrative.
 

The Lamp

Member
They're making a killing on these things if accurate, since there's no way Nintendo would sell the Switch at a loss.

edit: I actually had entirely forgotten the Wii U was sold at a loss. Either way, if they are able to take a momentary $45 hit, they must be making a tidy profit out of this one-time air freight.

I thought it was proven that the margins on switch are small. It costs like $250 to manufacture.
 

Shiggy

Member
They're making a killing on these things if accurate, since there's no way Nintendo would sell the Switch at a loss.

edit: I actually had entirely forgotten the Wii U was sold at a loss. Either way, if they are able to take a momentary $45 hit, they must be making a tidy profit out of this one-time air freight.

Are those numbers really accurate? I can send a package from Germany to China via air freight at about the same price. Businesses should be able to get better deals.
 
airplane-departing.jpeg

you mean they flew NS' into the Sun? i wouldnt be surprised!
 
Are those numbers really accurate? I can send a package from Germany to China via air freight at about the same price. Businesses should be able to get better deals.

In fairness, it's an analyst making that estimate. So it might be lower, but Nintendo is still likely paying a heftier cost than usual shipping.
 
That more than 1:1 attach rate for Breath of the Wild almost certainly helped them pull the trigger on this. Also, I'm glad I bought my extra controllers when the system launched, even though I didn't need them then. I remembered how scarce Wii remotes got with the Wii.

They maintained momentum, and probably ended up making more money even with the extra shipping costs by selling those extra systems while you've got Zelda and Mario Kart 8 Deluxe on shelves selling copies (and in MK8D's instance peripherals).

I figured this thing would be a Gamecube level success... but that's looking like an overly conservative estimate now. This thing going out into the wild where other people are going to see them, that's going to help the system a lot I think. And I'm with Arlo on the whole 'doing away with Miiverse was a masterstroke' thing. My Switch image shares on Facebook get loads of reactions.
 

Tomeru

Member
The headline of this thread made me think tbey used some new type of air delivery. Turns out they just used a plane.
 

GaimeGuy

Volunteer Deputy Campaign Director, Obama for America '16
They're making a killing on these things if accurate, since there's no way Nintendo would sell the Switch at a loss.

edit: I actually had entirely forgotten the Wii U was sold at a loss. Either way, if they are able to take a momentary $45 hit, they must be making a tidy profit out of this one-time air freight.

Most modern 600 dollar smartphones actually have only 200-250 dollars worth of materials in them.

The switch is, to my knowledge, top 2 or 3 powerful devices in tablet form on the market right now. But the switch also has redundancies in hardware due to the nature of the joycons. Extra batteries, bluetooth receivers, accelerometers, motors, etc.
 

tkscz

Member
Most modern 600 dollar smartphones actually have only 200-250 dollars worth of materials in them.

The switch is, to my knowledge, top 2 or 3 powerful devices in tablet form on the market right now. But the switch also has redundancies in hardware due to the nature of the joycons. Extra batteries, bluetooth receivers, accelerometers, motors, etc.

I could've sworn I read somewhere that the Switch was actually not selling at a loss like the WiiU did. Also read that WiiU stayed selling at a loss which was the reason it's price never dropped.
 

Kyzer

Banned
wake up, you naive sheep. Nintendo clearly put on this dog and pony show to hide their extremely profitable artificial scarcity technique.

4dchesss.JPG
 

Oresama

Member
they probably used fake planes since demand for the Switch is all fake anyway.
/s

I heard on Infowars that the planes released chem-trails that artificially increased demand for ZBOTW, which explains why the game sold more than the switch itself.
/s
 

bill0527

Member
Now the system is hard to find again.

Thanks Mario Kart 8.

Not sure where you are at in the world but in southern Indiana GameStop seemed to get a big shipment this past weekend as most every one in my region had them in stock. I wasnt expecting to find one but I walked into a GameStop Friday night and they had 5 on the back shelf. 4 after I walked out and they told me the other stores had them as well.
 

oSoLucky

Member
Money isn't made off hardware anymore. Didn't we go round and round on this topic enough during Wii U/PS4/XB1 launch? They'll make it up in the software and services. Getting units to consumers during the huge momentum is absolutely the right move.
 

phanphare

Banned
that seems weird considering the limited stock is all a part of Nintendo's master plan

/s


OT: good for them, seems they're trying to get as many Switches out there as possible to meet demand
 
If anything, it's a good sign that the narrative has moved from "let's wait a year to see if this launch is actually successful!" to "they should have manufactured 5 million units for launch!" We've advanced from denial to anger. Can't wait for the bargaining phase.

Bargaining: "The internal hardware is worth like $150 at MOST, I won't buy for one cent higher than that."

What would depression look like, I wonder?
 

Geg

Member
There's a bizarre amount of hostility towards Nintendo trying to meet demand from certain posters in this thread 🤔
 
Are those numbers really accurate? I can send a package from Germany to China via air freight at about the same price. Businesses should be able to get better deals.

I work in air freight.

We reem companies. It really depends on the weight of the shipment and the dimensions (actual weight vs dimensional (chargable) weight), but for something that is like 40 lbs, and 20x20x20 we charge about 1600 for picking up, flying, clearing through customs, and delivering. Not countering if there is additiona mileage (first 15 miles are free). That isn't including duties and taxes.
We're a two-three day "time sensitive" service though.
 
That's nice that they did that but it gives me the impression that they aren't super confident.

I don't blame them after WiiU.

Hopefully it all goes better than expected for Nintendo.

I get the opposite impression tbh. Nintendo is trying to strike while the iron is hot. It's smart and hopefully it translates into a good E3 too.
 

oSoLucky

Member
"All of the multiplats are going to get gimped by Switch, aren't they?"

Switch getting multiplats sounds more like the overarching concept of denial. I'm banking on the software support being more akin to 3DS than PS/XB. Anyway, if I were a betting man I'd bank on this level of demand keeping up throughout the rest of the year. Pokémon is probably going to destroy even Zelda and MK8D. If it actually comes this year, expect Switches to be very hard to find until 2018.
 

boiled goose

good with gravy
But artificial demand!

Undershipping means lost money and sales. People need to understand that. Nintendo is SPENDING MORE to ship more.
 
They may have to do this again in May, although by now their increased production should start making a difference in the amount they can ship.

In fairness, it's an analyst making that estimate. So it might be lower, but Nintendo is still likely paying a heftier cost than usual shipping.

I think the analyst is actually saying something like "it could be up to $45 per unit shipped" so yeah, I doubt that was the real number.
 

Hylian7

Member
Glad to see Switch is doing well. I hope some other games are ported to Switch.

we should just start calling it what it is, fucking salt.

It's either that or Nintendo is just boneheaded when it comes to shipping enough product. There's no excuse for the case with the NES Classic. There was clear and obvious demand for it, and yet they didn't produce more. I don't really buy "artificial scarcity", but Nintendo definitely fucked up big time in shipping it, and instead opted to discontinue it less than 6 months of being on the market.
 
It's either that or Nintendo is just boneheaded when it comes to shipping enough product. There's no excuse for the case with the NES Classic. There was clear and obvious demand for it, and yet they didn't produce more. I don't really buy "artificial scarcity", but Nintendo definitely fucked up big time in shipping it, and instead opted to discontinue it less than 6 months of being on the market.

Before it actually went on sale, I honestly saw absolutely no demand for the NES Classic, and had no reason to think it would sell well at all. Nintendo probably also saw very little potential demand for it, since plug-and-play consoles tend to sell very poorly overall. I don't think anyone could have predicted how massive the demand would be for that. So it would have been fairly irresponsible (business wise) to overproduce those without any clear indicators of demand.

What they did after it started selling is likely more due to how they want to capitalize on this software in the future, whether it's with a more expensive version (SNES Classic) or with Switch VC/Classics. It's definitely possible that they're leaving money on the table but it's also possible they are choosing to produce/sell Switches rather than NES Classics because the former gives them much, much more potential revenue per sale than the latter.
 

zelas

Member
So they failed to gauge market demand for yet another product? When is this going to stop being a thing with Nintendo?
 
If what we learned from that one poster in the GameStop thread is accurate, they probably delivered these directly to scalpers so they can say to third parties that they have sold a lot of consoles, so please develop for it.

After all, you have to come around to the truth.
 

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
So they failed to gauge market demand for yet another product? When is this going to stop being a thing with Nintendo?

Maybe they just read GAF.
 

spookyfish

Member
link this topic anytime someone mentions "artificial scarcity"

Pffft. You OBVIOUSLY don't understand how businesses work.

You actually make MORE money by not having product around to sell! What's so difficult about understanding that? Nintendo knows this and this is why they've maintained artificial scarcity since its playing card days!

1) Create an in-demand product.
2) Make it easy for scalpers to buy, but not customers.
3) Keep shipments small, so that no product is on the shelves.
4) Sit back and RAKE in the CASH!

It's as plain as the nose on my face, man!

Sarcasm, but I still don't know what they were thinking with the NES Classic.
 
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