Nintendo bullish over shipments despite operating in false market
DS as void-filler concept remains untested – Restock plans announced
Following what has to be described as a rampantly successful launch for the Nintendo DS in two key territories, the firm has gone on record to make bullish claims regarding rollout phase two.
Specifically, the 2004 shipping figure has been lifted to an impressive 2.8 million units in Japan alone, an increase of 40%
Speaking to assembled foreign press, Nintendo president and financial staple Satoru Iwata said, “Due to increased demand, we're now making an effort to increase our Nintendo DS production by expediting the manufacturing schedule and making shipments by air so we can get more product into the U.S. and Japan by year-end.”
This move will no doubt have been triggered by the predicted PSP under-stock issues, expected to plague Sony’s debut gaming portable for the next three months at least. “During peak periods, it may be necessary to boost production to 2 million units per month on a temporary basis,” continued Iwata-san.
However, questions still remain as to when the Nintendo DS party will run dry. Right now, the Kyoto giant is running rampant in the handheld sector, posting record sales and ship-through rates and on the surface, it seems to be an unsinkable ship. But this is in an unchallenged and thus unrepresentative market place. The portable pond is still without what is undoubtedly the big fish, the PSP and therefore is wholly temporary.
The fact still remains, as Nintendo will be keen to point out, albeit off the record, that the DS will make a positive impact on its bottom line in FY2004, as well as buy itself some time to launch what will arguable be the first non-rushed portable in a new generation.
Specifically, the 2004 shipping figure has been lifted to an impressive 2.8 million units in Japan alone, an increase of 40%
Speaking to assembled foreign press, Nintendo president and financial staple Satoru Iwata said, “Due to increased demand, we're now making an effort to increase our Nintendo DS production by expediting the manufacturing schedule and making shipments by air so we can get more product into the U.S. and Japan by year-end.”
This move will no doubt have been triggered by the predicted PSP under-stock issues, expected to plague Sony’s debut gaming portable for the next three months at least. “During peak periods, it may be necessary to boost production to 2 million units per month on a temporary basis,” continued Iwata-san.
However, questions still remain as to when the Nintendo DS party will run dry. Right now, the Kyoto giant is running rampant in the handheld sector, posting record sales and ship-through rates and on the surface, it seems to be an unsinkable ship. But this is in an unchallenged and thus unrepresentative market place. The portable pond is still without what is undoubtedly the big fish, the PSP and therefore is wholly temporary.
The fact still remains, as Nintendo will be keen to point out, albeit off the record, that the DS will make a positive impact on its bottom line in FY2004, as well as buy itself some time to launch what will arguable be the first non-rushed portable in a new generation.
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Comments
Autobot 9 Dec 2004 15:51
1/5
I love how Spong words there news. I swear it sounds like someone is bitter. Its ok, everyone has the right to be.
I do agree, Nintendo will have one hell of a battle when the PSP comes out. I read some system reviews and they are pretty favorable to the system. It looks like Sony might succeed in the handheld market, but for how long? The Gameboy successor might trample it. Sony might lose the console race when the XBOX 2 comes out. So that would mean Sony might go extinct. If every company plays their cards might Sony may go down.
I feel this is a repeat of what happened to SEGA. So many projects on the way, but they strayed too far from there core business and fell off the hardware map.
*I still think the PSP is gonna rule the handheld world until possibly the Gameboy Evolution (made up name for new Gameboy).
I do agree, Nintendo will have one hell of a battle when the PSP comes out. I read some system reviews and they are pretty favorable to the system. It looks like Sony might succeed in the handheld market, but for how long? The Gameboy successor might trample it. Sony might lose the console race when the XBOX 2 comes out. So that would mean Sony might go extinct. If every company plays their cards might Sony may go down.
I feel this is a repeat of what happened to SEGA. So many projects on the way, but they strayed too far from there core business and fell off the hardware map.
*I still think the PSP is gonna rule the handheld world until possibly the Gameboy Evolution (made up name for new Gameboy).
Ditto 9 Dec 2004 16:42
2/5
If Nintendo lose the handheld market then Sony won't let them have it back. I don't think that the DS will capture the market, yet at the same time don't think the PSP will either.
I think that Nintendo will sell a good number of DS units, enough to keep it afloat, and Sony will sell shedloads of PSPs, especially in Japan and Europe.
The only advantage in market terms is that Sony seems to be having to choose between PSP and their home console line. As M$ pointed out, this could weaken their position in one of the markets - I'd go for the home.
Miyamoto's comment that the future of portables is a high-powered GBA seems to leave the DS cold and contradicts Iwata's comment in the other Spong article. Nintendo don't know what they're doing.
Should be an interesting time, just hope Ninty don't go under.
I think that Nintendo will sell a good number of DS units, enough to keep it afloat, and Sony will sell shedloads of PSPs, especially in Japan and Europe.
The only advantage in market terms is that Sony seems to be having to choose between PSP and their home console line. As M$ pointed out, this could weaken their position in one of the markets - I'd go for the home.
Miyamoto's comment that the future of portables is a high-powered GBA seems to leave the DS cold and contradicts Iwata's comment in the other Spong article. Nintendo don't know what they're doing.
Should be an interesting time, just hope Ninty don't go under.
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kid_77 9 Dec 2004 16:47
3/5
Adam M wrote:
I don't think that the DS will capture the market, yet at the same time don't think the PSP will either
Adam M wrote:
Sony will sell shedloads of PSPs
Contradiction?
Ditto 9 Dec 2004 17:02
4/5
kid_77 wrote:
Adam M wrote:
I don't think that the DS will capture the market, yet at the same time don't think the PSP will either
Adam M wrote:
Sony will sell shedloads of PSPs
Contradiction?
Nah. What I mean is that neither will capture the market, both will sell a lot but Sony will sell more.
kid_77 10 Dec 2004 10:29
5/5
Ok right. Apologies there. Sort of 60/40 in PSP favour then.