Nintendo Cranks Up Switch Production On Surging Demand As Stock Hits 8 Year High
One analyst, Hirotoshi Murakami of Mitsubishi UFJ Morgan Stanley, predicts that Nintendo may even push past that elevated figure and produce 20 million units during the current fiscal quarter. The hope is that Nintendo will be able to stabilize console supplies as customer demand is very healthy.
Brick and mortar retailers that advertise when they will have Switch consoles in stock usually sell out within minutes. Even online stores can’t escape ferocious demand, as customers flock to online inventory checkers to alert them when new stock is available (those units also usually sell out within minutes).
Switch sales have been so brisk that Nintendo shares are at their highest level since way back in 2008. If you recall, 2008 was near the height of Wii mania across the globe. GameStop has witnessed a 24.6 percent increase in hardware sales during its recently completed Q1, citing strong Switch demand.
“Literally we have the product sold before they hit our warehouse. But we haven’t seen supply even come close to catching demand at this point,” said GameStop CFO Rob Lloyd.
In the end, Nintendo wants to avoid setting off “customer tantrums”, according to sources close to the company — especially as the holiday season fast approaches.
