Nintendo Promises To Double Switch Production

The Wall Street Journal reports that Nintendo will double their Switch production to meet consumer demand. This raises their planned shipments for FY 2018 from 8 million to 16 million units. This comes on the heels of a successful Switch launch, whereupon it sold 1.5 million units worldwide in its first week on market.

Nintendo has shipped a limited amount of Switch units for the Fiscal Year 2017 ending on March 31st, at 2 million tops. With 75% of their shipment last reported to have shipped to retailers, and the system hard to come by. This comes in slight contrast to the Wii U, which both failed to meet its initial shipment for FY 2013, but also the incredible sales projection of 9 million units for the following fiscal year (the Wii U shipped 6.17 million to that point).

In response to the news that production of the Switch would be doubling, the company’s stock price rose by 1.69% to 25,580 yen. This brought the stock to a level above where it was prior to the January 12th Switch presentation. Analyst Daniel Ahmad observed that this stock jump and push to double Switch production puts Nintendo in a good position for the next fiscal year.

Nintendo has seen strong demand for the Switch at launch with record-breaking sales for the company in both the U.S. and Europe. This has given Nintendo the confidence to increase production of Switch for the upcoming fiscal year. If Nintendo is able to produce and sell the amount claimed then this would be a complete turnaround from the Wii U and would position the Switch as a serious competitor to PS4 and put annual sales of the console on a similar trajectory to the Wii.

 

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A man with a plan. My favorite video game franchise is Pokemon, but his favorite video game is Resident Evil 4. I can also tell you trivial cartoon factoids.