Nintendo Using Costly Air Freight To Meet Demand For Switch Faster

Well that blows the air out of the artificial scarcity conspiracy.

Damn. That is expensive

wow wonder if they lose money per unit after that extra shipping

A welcome change (although short lived).

Nintendo often give the impression of being a bit tight with their wallet, opting to maximise their profits at the expense of the customer's experience.

Now, I'm hoping they will "express deliver" all the Zelda Amiibo to the UK to restock before I finish the game... okay, I'm hoping too much...

Thats handy. Sounds like they've enough of a margin in there to drop the price by around 50 quid if demand ever drops off.

So did they just not plan for it being successful then?

About $45 is not an amount so take no notice.

They would be paying shipping costs anyway, so the extra cost would be the difference.

While I'm still up high in the comment string...

~=● ARTIFICIAL SCARCITY IS A MYTH ●=~

That goes for both the Switch and the NES Mini. Good on Nintendo for taking the L on shipping to meet demand, and I hope they produce sufficient stock for the holidays!

They should have used Pilotwings.

@zool
No, the article says an additional 5000 yen, so that's on top of however much it costs to ship regularly.

@Kienda you too huh? I've been Eagle eyed for a while now and can't find reasonably priced Zelda amiibos anywhere for love nor money

They should have called Starfox.. It would arive faster with that extra security lol.

@SLIGEACH_EIRE Pilotwings for Nintendo Switch confirmed? 🤔

@shaneoh and it also says "it could cost additional ¥5,000".
'Could' is not a precise amount. 'Does' is precise.😉

@Dezzy they planned on 2 million for March. Because of demand they added almost 800,000 more. They had to be more conservative with Switch at first due to the sales failure of Wii U.

Some of us gamers don't understand that you just can't make 5-7 mil systems so quickly and it costs money to have them sitting in warehouses unsold.
So far I think they have done a great job getting systems in stores to meet demand. My local Best buy had 60 systems at launch

Getting them to their customers by Planes, Trains and Automobiles.

@zool Ya, Nintendo are a notoriously tight company. There's no way they're losing ¥5,000 on each console. It's dramatic PR speak and gathers some extra headlines on sites like here and a few other places I seen.

And some are still wanting Nintendo to make more NES Minis instead.

How does transporting a batch of Switches by plane in March help meeting demand during the launch of Mario Kart 8 DX in any way? That by air shipment was over a month ago... :/

The spokesperson was speaking in past tense, not talking about current batches. Kinda misleading reporting going on here. Or am I missing something?

$45 per unit does seem a a bit steep tbh. . .

@WKE normally freight shipping time by sea form China can be weeks - Air freight can be 24 hours

@Freek
Don't forget boats

@zool
You said:
"They would be paying shipping costs anyway, so the extra cost would be the difference."
However they are saying that it's on top of the cost standard road (boat inclusive) freight. So the extra cost isn't the difference between the ~$45 and the standard road freight, it's the ~$45 on top of the cost of road freight. I'm aware that freight costs between countries change.

@cfgk24
Freight is expensive, companies charge by volume or weight, which ever is higher

From the original WSJ article (just the title and subtitle, I don't have a subscription to WSJ):

"Nintendo Shipped Switch Consoles by Plane to Quickly Meet High Demand

Company moved back in April to using less-expensive sea freight "

Did the writer of this NL article actually read his source? :/

@shaneoh Nintendo have made a killing on the price of boxed games, the extortionate price of downloads, the mind blowing price of controller's and the rip off price of Aminos; so a bit extra cost on freight charges is just a drop in the ocean for Nintendo.

@zool
And? That doesn't really relate to the point I was making.

Hm... interesting.

Would be great if they would just take preorders and send them out first come first served instead of this ridiculous system of hide-and-seek with retailers. Also how does a company that loves to control all aspects of supply allow retailers to sell marked-up bundles?!

@bluesdance preorders would make it easy to get in the scalpers hands

Which retailer is selling above MSRP?

Very surprised to read this.

Gotta deliver those Mofo Switch on time.

@jaymacx
Should've sent them by plumbing pipes tbh.

https://www.youtube.com/watch?v=GGU1P6lBW6Q

Lol, and people still think Nintendo is creating a false demand by limiting supply.

@jaymacx my Bestbuy had a little over 200 , granted This Orlando store is an International store so they sell so much product the amount of units were justified . But being​ there on launch nite it was nothing but locals and of course all the systems were bought.

@HeroOfTime32
Rule #1 of Nintendo critics, assume everything is always the most nefarious and anti-consumer immediately until proven otherwise...then just insinuate it again later.

@Action51
You're forgetting that everything that would indicate otherwise is of course a downright lie...

You could use a nuclear powered catapult.

More reliable than Royal Mail?

@zool
Not per shipping container. It is per system.

They probably bribed some people on the airline's payroll with a couple Switches to secure free shipping for a few thousand units /s

Unfortunately this is something Nintendo HAS to do. Everyone knows that people like to spend money without thinking at the spur of a moment. Having the product available without second thought is a must while the console is still hot.

@shaneoh it relates directly. You said it was an additional cost. This cost Nintendo will absorb, so this won't affect the consumer and my point was that the cost will be peanuts to Nintendo since their cost of software and perennials are over priced and so Nintendo is not the loser, just a little less profit on a small number Switches.

I can see myself finally getting a Switch when there's a packed in game and I can just order one on Amazon without a price gouge.... so probably around 2019 lol

so they intended 1-2 switch to make up for this all along

It's a shame that I still can't afford one anyway

Next Nintendo will start sending out mini Miyamotos in shining armour to deliver switches to each and every house

Am I missing something? The headline says "Nintendo using air freight to meet demand" (present tense.) The article body, postulates that it is to "make the most of the MK8D launch."

The quoted sections state that they used air freight in MARCH (initial launch/first restock) to meet and that they switched back to sea freight after that initial demand was met (as though demand has slowed?) Without a WSJ subscription I can't verify with the original article.

Is Nintendo CURRENTLY accelerating deliveries via air freight, at a big loss, to meet demand during the MK8D release, or is this entirely about how Nintendo handled the initial hardware launch, and has nothing to do with anything they're doing now?

@WKE Not likely. NL is comprised of gamers who can write, not journalists who cover gaming.

Should debunk the "artificial scarcity" theory...

Could've used Lakitu...

Well, at least they're trying.

Good on them for making the effort and to NL for bringing this to light. This method costs quite a lot of money, but hopefully it helps buy back more customer faith.

Interest in Switch is high right now. If they need to take a bit of a hit to the wallet in order to get more Switches out into the market I think it is worth it.

That means NOA failed to anticipate demand, Sometimes I wonder why Reggie is still in there...

@WKE I skimmed the comments to make sure nobody else had said that already and somehow missed yours before posting almost the same exact thing. Sorry about that! But at least there's two whole people who actually noticed that

This might make the profit value for each switch unit virtually non-existent. Hopefully, this pays off in the long run with software sales and increased popularity.

Switchhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh it's like the Wii all over again

@foodmetaphors I'd bet they probably are at this point but they will easily make it up with game sales and the extra support the system will see by increasing the install base. Definitely smart on Nintendo to roll them out as quickly as possible. My son and I played MARIO Kart on the go the other day using the 2 joy cons as separate controllers and leaving the screen set in table top mode. It was simply amazing. Nintendo definitely has a hit.

Good to know their trying.

@Hikingguy Precisely. Nintendo botching the distribution numbers of the Switch should surprise no one.
At this point, anyone should be able to walk into a major retailer and pick one off the shelf.
That level of incompetence usually gets people fired.

And people still think they do this to generate hype. No people Nintendo is really bad in predicting demand for their products is as simple as that no conspirancies just plain bad at predicting the market.

I have had it with these mofo Switches on this mofo plane!!!!

Can somebody photoshop mario's head (or luigi with the death stare) on to samuel l jackson's body?

5,000 Yen / 45 Dollars PER UNIT? That seems unreasonably high.

@Manjushri - Actually, you have to pay for the use of a jet and fuel(several thousand dollars), a pilot and people to load/unload, rental of the airstrip, and then trucks to hurry them to stores.

where did you learn to fly?

@foodmetaphors It states that "...it could cost up to 5,000 yen", not that it costs that.

I've had packages sent from Japan, almost every month, and it costs me around 3 bucks per pound, to Nintendo it should be something like a buck or something. I bet that it costs Nintendo like 20 dollars per Switch.

They are hoping to recap those costs by selling more and people buying games. Nothing to worry about.

This is interesting. So they really didn't expect it to sell that well? I can understand this, with the Wii U bombing the way it did. Wonder if they'll pull a similar, less costly trick to get more NES Minis out there (as it could be that this market won't cannibalize Switch sales, given the price and content difference).

@shaneoh But it also says :..it could cost.." meaning that maybe could cost as much as an additional 5,000 yens. Anyone using play-asia knows that the cost is way down, maybe 15-20 per unit for someone like you and me, for Nintendo maybe 7-10 bucks.

I am happy to hear that Nintendo is doing their best to get the Switch onto the hands of people that have yet to get one.

@stuie1234 I have one, but I care because this means my friends can all get one, too.

With the discontinuation of the NES Classic and this extra air freight, I'm expecting to get slapped upside the face from such an abundance of Switch stock when I walk into my nearest electronics department.

@bezerker99 Pls post video footage of you walking out of your house. Do it for science.

Outstanding! That is real customer support!

And in 6 months everywhere to find a Switch system. Just be patient guys. More games in 6 months will be also released. Save up money in the meanwhile!

@starcatcher77

They're.

@AhabSpampurse Yep, I'm in exactly the same boat. Checking every day to no avail. Also asked Nintendo and they have no news on the issue. So it is highly unlikely anything will change. I may have luck with the new Amiibo in June, but I will have finished the game by then.

loving the success story switch is turning into

This is why Nintendo is great, spending extra money to spread the love!

@zool @maceng
The numbers are irrelevant, this is the point I'm arguing:
"the extra cost would be the difference."
When this was said:
"because it could cost additional"
The equation isn't: Air freight - Road freight = actual cost
it is: Air freight + Road freight = actual cost
Also the difference with us buying something from Play-asia is that we aren't buying a pallets worth of stuff. Nintendo are shipping something that (if they are using a standard pallet) is 1.2m*1.2m*1m (assuming they stack it one metre high, they could go higher or lower).

@shaneoh I do understand your point, I got it a few posts ago. And what ever the extra cost it will be nothing Nintendo can't absorb quite easily.
That said, the quote "it could cost additional ¥5,000 per unit (about) $45, is meaningless. It could, but it might not cost that. Nintendo could knock $50 off the price of a Switch but..........,

@zool $45 is not meaningless. It's variable cost. And you're trying to use software sales to insist that they will cushion Nintendo from that cost, but video games already need to cover their own development costs and variable costs before they make a profit, not to mention that they cost only $60 to begin with.

At any rate, this may be moot because Nintendo didn't make air freight an ongoing practice... specifically because $45/unit ISN'T meaningless.

I could tell Damien didn't write this because this wasn't controversial in nature.

Keep the shelves stocked Nintendo. Looks like you have a winner.

@Alucard83 yes sir. That's my strategy. I'm thinking of finally joining the 3ds crowd by way of the new 2DS. Some great games I need to catch up on In the meantime​.

BitLounger did this for their Kickstarter project on their SNES storage treys, rather than see weeks of delays. It was a huge squeeze and slashed the profits down to peanuts, but everyone got their stuff and saw zero delay complaints. Sometimes youve just got to bite the bullet.

@World a lot of it has more to do with supply constraints rather than miscalculating demand. They knew they were going to sell out, but they can only make so many.

@oatmealwarrior92 that's amazing.. but it does make sense. I thought it was a well organized launch overall. Best buy was probably the best retailer for customers trying to get a Switch.. Walmart being the worst organizer.

That's just stupid, get a bigger and faster ship.

@mainstream05 shipping a few hundred thousand units by air to meet the immediate needs for a few weeks, while thousands more are sent by the usual method and will not attract much additional cost. So this is a small amount of profit lost, nothing Nintendo can't handle.

If Amazon can sell a physical copy of Mario Kart 8 deluxe for £42 ($54) and a Nintendo download is £59 ($76) they can use some of that profit to off set the shipping cost.

Well, in all honesty. They have to or they will lose big momentum.
People will get frustrated, give up and move on and maybe go for a different console instead.

Better to take a temporary hit and get to console in the hands of customers, than not at all.

@zool They're saying "could" simply because currency often fluctuates between countries. One day it might be $45, another day it might only be $41. And then again not all of these are going to the US I am sure so there are conversions of yen to euro to dollar going on, or yen to pound to dollar, which will throw off the numbers as well. They only gave the number of $45 because they were speaking to an American publication. It is close enough to $45 for government work. And $45 per unit is a steep price. Bodes well for price drops and bundles in the future though.

@TheLobster Nintendo will not ship at a loss, I bit less profit yes.
I like many others bought Mario Kart 8 for the Wii u and the additional content.
I have Mario Kart 8 deluxe so I have paid twice for the same content plus a little extra.
Nintendo could have offered a discount to those who had purchased the original, they chose not to. They can use some of the profit they got out of me to help with shipping costs. 😁

They shipped in the original switches to meet demand, but the delivery out to customers was a complete shambles

@zool I'm not disputing that it's nothing Nintendo can't handle (as you noted, Nintendo still isn't selling at a loss, and it was a temporary measure), but your "I bought Mario Kart twice so they should be fine" logic is simply not how corporate accounting works.

Going the extra mile, I like! 👌

@mainstream05 I'm not referring to corporate accounting, I am talking about company profit. We all know accounting is just to balance figures in a way that enhances profit.

@zool No, it's not.

I wonder why Profit is so important to a company then. And why the shipping cost on a relatively small amount of Switches is such an issue.

@BitLounger Yeah, fair point. Seems like they've had demand outstrip production capacity a few times now. Amiibo, the Mini, and now this.

@World Yeah, it's a slippery slope. You can either push back launch/release and make people mad, or release to under-supply and make people made. It's a no-win situation.

@BitLounger Absolutely. Selling out all the time is great, but I wouldn't want to be the one to clean up afterward.

@zool I am not sure how your comment relates to my comment. But if you were upset over purchasing MK8 again, why do it when it was still full price?

It is not the cost, I can afford to purchase the game twice. I gave my Wii u away with Wii u games. But it shows how profit comes before the customer. And how Nintendo puts profit before gamer loyalty.
But I guess that is no different from most companies.