Production Concerns Determined 3DS Timing, Nintendo Slashes Fo

[DiscostewSM]

Production Concerns Determined 3DS Timing, Nintendo Slashes Forcasts

When Nintendo outlined some of its 3DS launch plans today at a Tokyo press briefing, it came as a surprise to some analysts that the company's February 26 rollout in Japan will miss the holiday window.

The later launch led the company to make drastic cuts to its profit forecast -- and may also portend supply constraints for the U.S. launch, one analyst says.

"Given the later launch of the 3DS in Japan, we note that shipment quantities to the U.S. next spring might be more constrained than originally anticipated," says Lazard Capital Markets analyst Colin Sebastian.

MF Global FXA Securities analyst Jay Defibaugh wasn't as temperate, telling the Wall Street Journal that the announcement was a "worst-case scenario." Defibaugh had also hoped for a 2010 launch, a 3G wireless connection, and a ¥20,000 ($240) price point versus the ¥25,000 ($299) Nintendo revealed.

According to the report, Nintendo president Satoru Iwata told analysts the company had in fact been shooting for a year-end release for the 3DS, but delayed the launch due to concerns it wouldn't be able produce enough units to meet the season's demand.

Nintendo says it's expecting four million 3DS units sold by the end of its 2011 fiscal year -- which since the company's year ends in March 2011, translates to a prediction of first-month sales.

The company expects the device's Western launch to occur in March, as well. In the same window, the company's predicting 15 million software units sold specifically for the 3DS, excluding units on other DS platforms.

Nintendo has already been somewhat challenged by declining software sales and a strong yen -- the latter factor in particular has been a significant challenge to the coffers of most Japanese companies -- but the forward movement of the 3DS means the company must reduce its profit forecasts even more drastically, as the device's launch was expected to provide a much needed antidote to lags in the DS and Wii market.

It now expects a fiscal year profit of ¥90 billion ($1.08 billion) -- a drastic reduction on May's ¥200 billion ($2.4 billion) forecast. It also reduced expectations for both hardware and software unit sales for Wii and DS: instead of the previously-forecast 30 million, Nintendo now plans to ship 23.5 million DS hardware units (including the 3DS), while Wii forecasts came down only slightly from 18 million to 17.5 million.

For software, Nintendo reduced DS software sales expectations from 150 million units to 125 million, and Wii software from 165 million to 135 million.

Source

Seems that they wanted to launch this this year, but they'd end up having a shortage like they did with the Wii. Even with the delay, that may still happen if the demand is high.

 

[KingVamp]

What they release the wii didn't they , matter well release the 3DS too.

So people well get it early then other people,so what...

 

[injected11]

... So why don't they go ahead with the year-end release and just have a shortage... you know, like the Wii? Which constantly caused it to be hyped in media sources because they literally couldn't keep them on the shelves?

 

[Warrior522]

... So why don't they go ahead with the year-end release and just have a shortage... you know, like the Wii? Which constantly caused it to be hyped in media sources because they literally couldn't keep them on the shelves?

Someone needs to email this to Nintendo, seriously...

 

[SPH73]

So all those people saying it would come out this year were partially right. They at least had their finger on the pulse of Nintendo. Too bad it didn't happen. I don't want to spend my money on Kinect, but now it seems like that's what I'm going to do.

 

[trumpet-205]

To me, "delayed the launch due to concerns it wouldn't be able produce enough units to meet the season's demand" is like excuse to me. My guess would be that they run into production problems that can only be corrected by delaying the launch.

 

[DiscostewSM]

To me, "delayed the launch due to concerns it wouldn't be able produce enough units to meet the season's demand" is like excuse to me. My guess would be that they run into production problems that can only be corrected by delaying the launch.

Just a thought, but aren't there other companies using "3D" screens in their devices soon? Nintendo doesn't make everything themselves. For what they don't have, they buy (in bulk) from someone else, and them assemble the final product themselves. If the demand for an item is much greater than it's supply (in a case like this, a bunch of companies are purchasing the same item, but the manufacturer can't produce them fast enough for all the buyers in a specified amount of time), then the production of the final assembled devices is slow.

It may be a problem on Nintendo's end, but then again, it may be a problem on the end of where they are getting their stuff from.

 

[Warrior522]

To me, "delayed the launch due to concerns it wouldn't be able produce enough units to meet the season's demand" is like excuse to me. My guess would be that they run into production problems that can only be corrected by delaying the launch.

My dad and I call bullshit for the same reason.

 

[SPH73]

To me, "delayed the launch due to concerns it wouldn't be able produce enough units to meet the season's demand" is like excuse to me. My guess would be that they run into production problems that can only be corrected by delaying the launch.

Actually considering the intense demand for hardware during such a narrow, global launch window I'd say you are wrong. No offense , but launching in Japan in February and then in the US and EU in march is no small feat. I've seen the 3DS in person more than once. They had their shit together months ago. They're just building stock now.

 

[manobon]

Since I already have to wait until March (and for a new job =^\), I think I'll wait for the 3DS/3G model that will come out the year after.

 

[DiscostewSM]

Since I already have to wait until March (and for a new job =^\), I think I'll wait for the 3DS/3G model that will come out the year after.

You have no proof of them saying they'll make a new version of the 3DS a year later, let alone including 3G.

 

[Fluto]

they did this because the dsi got hacked in 3 days or something then cards came out
for other countries had to wait but the good thing was they made a flashcard already
but this time the release dates are closer Japan-rest of world
so people who buy the 3ds will need to wait longer

 

[injected11]

they did this because the dsi got hacked in 3 days or something then cards came out
for other countries had to wait but the good thing was they made a flashcard already
but this time the release dates are closer Japan-rest of world
so people who buy the 3ds will need to wait longer

You mean to tell me you really think they're giving up nearly $1.5 billion in projected sales because of the possibility of piracy? wut

 

[FireGrey]

Well they want to get as much stock as they can so noone is left unhappy.
Wouldn't it be bad if you got really hyped up, went to the shops and couldn't find the 3DS anywhere?

 

[Rydian]

It's clear how many people here don't remember the Wii launch time, when shelves were literally empty.

 

[donelwero]

I don't think it is because of a shortage. A lot of money is involved and launching 3ds in february will make them lose a lot of that money. A year-end release having shortages would be a much better choice, so no one would cancel their preorders and stuff.

Like someone said before, lots of people will buy kinect instead of a 3DS now that it has been delayed.

 

[chartube12]

ugh! It took 3.5 years in part of PA for the Wii shortage to end. Many of my friends ended buy a 360 instead and to this day never bothered with the wii. The 3DS is smaller than the wii. You think they have more room to store parts for one. If a 3.5 years shortage happens with the 3DS nintendo, will lose a costumer.

 

[thebigboss14]

It doesn't really affects me because I will have more time to enjoy it in the summer. I just wanted to experienced first before buy it but seems we still have to wait more. More time to save and to enjoy my Wii for now.

 

[abel009]

does anyone know if the 3DS has some form of friend comunication? or what is the internal memory amount?

 

[Rydian]

does anyone know if the 3DS has some form of friend comunication? or what is the internal memory amount?

Check the release details thread in the official news.