Nintendo Switch Latest Stock News: The Hybrid Console Is Selling Like Crazy
Nintendo has been on the dilemma of supply and demand issue of their latest consoles, first the NES Classic Edition and then the Nintendo Switch. In order to meet up the higher demand, the Japanese company is trying to supply their customers through various ways.
A spokesperson from Nintendo said to Wall Street Journal, that the company promptly carried out the Switch to customers through plane last March and in April they went back on sea freight to deliver to retail stores, which is a lot less expensive than the air shipment. However, the company did not make it clear where the planes were heading to, though some analyst expressed that these were flights that carried Switch to the US and Europe from the factory in China.
In a typical manner, Nintendo ships their products around the world by sea but to respond quickly to the after launch's high demand, they resort to another option, Kotaku reported. According to Haideki Yasuda, an analyst at Ace Research Institute, Nintendo has to pay an extra ¥5,000 or $45 for each unit shipped through the airplane. Atsushi Osanai, a professor from Washeda Business School, supported this by saying that it is very vital for companies to sell their products as many units and as quickly as possible, getting an advantage on the customers' high interest.
There were speculations that Nintendo is creating an "artificial scarcity" in order to increase the demand for their console, as what Forbes has reported. It said that the company has been under the terrible managing on their supply not only once, as it also happened recently to NES Classic Edition. Rumors say that in order to create an illusion of high demand, Nintendo is producing fewer units purposely.
This marketing strategy is a reality and the tech giant is accused of it not only once. Despite all of these accusations, there are some reasonable points that explain why Nintendo has been encountering this, such as the inability of the company to predict the demand before they produce the consoles they don't have the foreknowledge if what will they manufacture will be a hit. Nintendo estimated that they would sell 10 million units of Switch in the current fiscal year, while analyst from Macquarie Capital Securities, David Gibson, stated that it will even reach up to 14.5 million units and the figure gave by Nintendo is a starting point only.