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CaviarMeths

Avenger
Oct 25, 2017
10,655
Western Canada
With those kind of attach ratios and that many first party 10+ million sellers, why in the flying fuck would they still insist on pricing their hardware to profit?
I guess because when they're outpacing almost every console in history, the market is telling them there's no need for a price drop quite yet.

Can probably expect one later this year though.
 

LinkStrikesBack

One Winged Slayer
Member
Oct 27, 2017
16,362
With those kind of attach ratios and that many first party 10+ million sellers, why in the flying fuck would they still insist on pricing their hardware to profit?

This is why



With 22 months on the market, Nintendo Switch has shipped 32.27 million units of hardware. Here is how it compares to other console hardware, when launch aligned. At the moment it's tracking above PS4 and inline with Wii (Although will likely not keep up with Wii next year)


They'll price drop when sales begin to slow, or they have a new model, and not before.
 

McScroggz

The Fallen
Jan 11, 2018
5,973
This is a revision of the initial 20mil projection that has caused at least a dozen threads, correct? If so, a three million downgrade is pretty drastic, right? I wonder what fell short for Nintendo or what the cause is? Smash killed it. Pokemon Let's Go seems to be doing somewhere between good and great per expectations, and those two games were the main driving force of sales this year.
 
Oct 26, 2017
7,981
Sell 17 million at $299 and profit $100 on hardware once, or sell 25-30 million units at $199, but sell 30+ million additional pieces of software this year alone.

As long as retail software is still a thing, your first option is going to bring in more profit.
Better to introduce a second model alongside the first so you can keep HW profits and sell more software.
 
OP
OP
Noobie

Noobie

Banned
Oct 28, 2017
755
This is a revision of the initial 20mil projection that has caused at least a dozen threads, correct? If so, a three million downgrade is pretty drastic, right? I wonder what fell short for Nintendo or what the cause is? Smash killed it. Pokemon Let's Go seems to be doing somewhere between good and great per expectations, and those two games were the main driving force of sales this year.

I agree that the smash and pokemon probably did more than expected in software but may be Nintendo was expecting more hardware boast from these titles which they failed to give.
Or i think Apr-Sep hardware results a bit lower (~2m) than their expectations. So i think its the sum of both over-optimism in hardware boast and under-performance during earlier quarters.
 
OP
OP
Noobie

Noobie

Banned
Oct 28, 2017
755
Japan's Nintendo slashes Switch hardware forecast after bumper third quarter
"We didn't work hard enough to convince customers of the Switch's appeal," Chief Executive Shuntaro Furukawa said at an earnings briefing.

At the same time, Nintendo smashed profit estimates for its October-December quarter and upgraded its Switch software forecast to 110 million units from 100 million previously, announcing that hit titles "Super Smash Bros. Ultimate" and "Pokemon: Let's Go" have shifted over 10 million copies each.
 

Gibordep

Member
Nov 1, 2017
1,282
Yeah, there were so many ridiculous posts telling everyone to eat crow for not voting 20m, etc.

Would think Nintendo makes at least ~18m pretty easily, but who knows. Q4 seems super empty software-wise.

I am not a Nintendo fan, always had sony consoles, but I try not to enter in console wars, but sometimes for me (although that persons dont't represent the majority of Nintendo fans) its difficult to stay Neutral in relation to Nintendo. That thread, and that goal, was used against other members in a unnecessary way.
 

aisback

Member
Oct 27, 2017
8,740
I'm surprised they even got this close to 20 so far.

Never say never. Nintendo could announce something big and more people may flock towards it.

Also those sales numbers for software is crazy.
 

Vyrance

Member
Oct 25, 2017
1,223
Florida
Seems like too large of a reduction on their part. I didnt think they'd hit 20 but I still thought they'd do around 19
 

lost7

Member
Feb 20, 2018
2,750
At the end of the day, profits is what it's all about and thanks to amazing software sales, they're doing great. Still, would have been nice to hit 20 mil
 

justiceiro

Banned
Oct 30, 2017
6,664
Man, Zelda going from a +100% attach rate to barely one third is depressing.

But yeah, Nintendo always knew that they couldn't really achieve that number when most of last year was down yoy. Even last quarter it was basically the only console that didn't had a price cut. The bundle offering where not compelling at all and that Mario kart 8 bundle was simply too little too late.

Even for q1, the biggest news so far is how Metroid is not coming anytime soon. To hit anything beyond 17 million, they would need to get q1 sales bigger yoy, and this obviously isn't happening at this point.
 

Deleted member 9584

User requested account closure
Banned
Oct 26, 2017
7,132
After December I was confident they would hit the 20 million. After mid-January, when they announced the Kirby release date, I was certain they wouldn't hit it anymore. Their Q4 fiscal year offering is extremely poor.
 

Nostradamus

Member
Oct 28, 2017
2,280
That's a pretty big revision. Also, I don't agree with people saying that 17m is easy to pass. January to March is a pretty slow time of the year and Nintendo tends to do the majority of their sales during the holidays. The report basically says that Switch "only" sold 5m in 6 months and then did an impressive 9.4m during the holidays, so we shouldn't expect more than 2.5-3m sales for Q4.

In any case, I think launch aligned the Switch is the best selling console ever.

Edit: Judging by Nintendo's initial estimations, they were probably expecting even higher sales during the holidays which implies that they rely 100% on their first party lineup. That's a bit worrying though regarding their effort in creating a platform that's also heavily supported by third parties. The Wii was badly hurt due to the absence of third party titles to support the occasional draughts from Nintendo's studios, especially during Wii's final years.
 
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Tarot Deck

Avenger
Oct 27, 2017
4,233
Maybe the Metroid game was supposed to launch in Q1 2019, so that's why they shot they projection dowm.
 
Jan 10, 2018
7,207
Tokyo
Nintendo needs more than trickled-down third party support, because they obviously do not have the resources to maintain a constant stream of high quality releases. Not having Sekiro, Code Vein or Resident Evil 2 while the console is entering its second year is a big miss for example.
 

Peleo

Member
Nov 2, 2017
2,656
Man, Zelda going from a +100% attach rate to barely one third is depressing.

But yeah, Nintendo always knew that they couldn't really achieve that number when most of last year was down yoy. Even last quarter it was basically the only console that didn't had a price cut. The bundle offering where not compelling at all and that Mario kart 8 bundle was simply too little too late.

Even for q1, the biggest news so far is how Metroid is not coming anytime soon. To hit anything beyond 17 million, they would need to get q1 sales bigger yoy, and this obviously isn't happening at this point.

Barely one-third is an attach rate pretty much every single game launched in a sucessfull console would die for.

Metroid has much less impact in sales than expected. On top of that, Q4 should be up YoY based on NSMBUDX and Ultimate alone.
 

UltraMagnus

Banned
Oct 27, 2017
15,670
This is why



With 22 months on the market, Nintendo Switch has shipped 32.27 million units of hardware. Here is how it compares to other console hardware, when launch aligned. At the moment it's tracking above PS4 and inline with Wii (Although will likely not keep up with Wii next year)


They'll price drop when sales begin to slow, or they have a new model, and not before.


I think they'll drop the price by $50 in the back half of this year. It's selling very well, but it's not selling like Wii "we can't keep this thing stocked!". It's due for a $50 price as it will almost be 3 years old come this holiday.

PS4 got a $50 cut right before its 2nd birthday, Wii got one before its 3rd birthday. Switch getting one around October of this year would be about right.
 

Mafro

Member
Oct 25, 2017
8,365
10million for Let's Go in 2 months. Crazy that there was so many people on here convinced it wouldn't even do 5million
 

UltraMagnus

Banned
Oct 27, 2017
15,670
Man, Zelda going from a +100% attach rate to barely one third is depressing.

But yeah, Nintendo always knew that they couldn't really achieve that number when most of last year was down yoy. Even last quarter it was basically the only console that didn't had a price cut. The bundle offering where not compelling at all and that Mario kart 8 bundle was simply too little too late.

Even for q1, the biggest news so far is how Metroid is not coming anytime soon. To hit anything beyond 17 million, they would need to get q1 sales bigger yoy, and this obviously isn't happening at this point.

Those Zelda sales are still crazy, lol. It's higher than any 2 Zelda games combined from any other Nintendo system, even the Wii, and the game still has years of sales ahead of it.
 

Andri

Member
Mar 20, 2018
6,017
Switzerland
What if they reduce Q4 HW shipments this much so retailers wont have to sit on old NSW HW for when they announce the revision for release in April.

please dont dogpile me with "i dont want a revision, so there wont be one"
 
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