Following Nintendo's recent financial report, which confirmed what we already knew about the Nintendo Switch's incredible success, there was a question and answer segment for which we've been awaiting a respectable translation. That translation has finally come through, and there are some really interesting bits in there that Nintendo fans will likely want to hear. The answers, though slightly ambiguous, are still quite lengthy, so let's get right to it.
First, for all of you who are worried that you won't be able to get your hands on a Nintendo Switch due to shortages, know that Nintendo is fully committed to producing as many Switches as it can in order to meet demand.
"We are planning to ship 10 million units of Nintendo Switch this fiscal year, so we are preparing to produce that quantity or more. We shipped 2.74 million units last fiscal year, but this quantity was not produced solely during the fourth quarter of the previous fiscal year. We started production for Nintendo Switch in and after summer of last year and were preparing for launch over the course of several months.
"Since the demand for the hardware is significantly high right now, and we cannot build up inventory over a long period of time (as we did before launch), we have greatly increased the quantity we can produce in a single month. We cannot provide any specific numbers, but we are boosting our production capacity to enable us to ship 10 million units this fiscal year and handle the season of high demand."
When asked about projections for the Nintendo Switch and its success, President Kimishima reiterates his expectation that the Nintendo Switch will reach Wii levels of success, and even concludes by assuming that household will want to purchase multiple units:
"The truth is we want to raise the installed base of Nintendo Switch up to the same level as Wii. As we mentioned during our presentation, Nintendo Switch in America had the fastest start of any Nintendo hardware, despite launching in March. In the video game business, it’s important for consumers to feel that a sales momentum is going to grow, and we are setting a standard with Nintendo Switch to release a continuous string of major software titles from now on. And if our sales go according to our plan this fiscal year, we will be able to see Nintendo Switch gaining the momentum in which it can approach relative parity with Wii afterwards.
"Plus, considering that Nintendo Switch is a home console video game system that you can take with you on the go so you can play anytime, anywhere, with anyone, we think there will be households that feel as though one is not really enough. This is another point that drives us to match the scale of Wii's popularity with Nintendo Switch. "
Finally, for all of you handheld gaming fans, Nintendo is still very much dedicated to its 3DS line of hardware -- especially with the release of the New Nintendo 2DS Xl:
"Our expectation is that if we are able to continue to provide enjoyable software, we will always meet the needs of consumers who want to continue playing on the existing Nintendo 3DS series. To that end, we are always thinking about what kinds of software consumers are going to want, and evaluating our hardware cycles to make sure that we are meeting that need.
"This means that our product lifecycles are not going to last for a set number of years, but will be flexible enough to change when required by changing consumer needs.
"In general, this is the sort of thinking we want to adopt for all our hardware development. We want to have flexible hardware cycles where the launch of new hardware sets off the development of the next hardware that will respond to consumer trends. "