Nintendo Absorbs Losses For Shipping Nintendo Switch Restocks Via Air

By Michael Augustin , Updated May 03, 2017 09:51 PM EDT
Close
Super Mario Odyssey gameplay trailer | Nintendo Switch

While consumers and retailers have expressed their struggles with the restocks of Nintendo Switch consoles, reports have also noted that Nintendo is also encountering challenges of its own when it comes to these shipments. A report confirmed that restocks of the new game console are selling out within hours and the demand continues to grow. Sources have discovered that the Japanese gaming company has even paid extra to ship the consoles by air from China.

According to The Wall Street Journal, Nintendo has opted to move Nintendo Switch console shipments from China via air to the US and Europe. It has been confirmed that the company has been doing this since initial stocks sold out in March after its successful launch. However, Nintendo has gone back to the more traditional sea freight method for the month of April. Analysts have also estimated that it cost the company an estimated $45 for each unit shipped by air.

Despite the reports of consumers being upset with Nintendo for the insufficient stocks of the Nintendo Switch, The company appears to have gone the extra mile to get some more units available for retail at their expense. Several fans have criticized Nintendo for its poor handling of their inventory, which started last year with their NES Classic Edition. Reports have noted that gamers got upset after Nintendo revealed their plans to cancel the retro console's manufacturing soon. Their decision to ship restocks via air barely made a difference due to the great demand for the Switch.

Gamenguide reported that Nintendo has already sold close to three million Nintendo Switch units since its launch. It is obvious that the new game system is planning to surpass the sales of the Nintendo Wii and hopefully catch up with other platforms. Analysts have also noted that the Japanese gaming giant should work to improve their supply chain and manufacturing. Otherwise, shipping the restocks via air might affect their profits even more.

The upcoming release of "Splatoon 2" and "ARMS" is expected to drive consumers to grab the Nintendo Switch. But as long as their supply chain continues to have a problem, Nintendo might have to consider shipping some more units via air all over again.

© 2017 Game & Guide All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics