“We believe the proportion of Nintendo Switch – OLED Model sales will grow along with the increase in demand for multiple systems.”
As part of Nintendo’s Financial Results Briefing for the Fiscal Year ending March 2022, the Big N undertakes a Q&A session with their investors. With the English version now available, we get to see Representative Director and President, Shuntaro Furukawa and Executive Officer, Hajime Murakami, speak out on a number of subjects.
In this particular piece, Shuntaro Furukawa speaks out regarding Nintendo Switch’s OLED Model and the Nintendo Switch Lite:
Shuntaro Furukawa on the Nintendo Switch OLED:
We have been able to maintain high demand for Nintendo Switch – OLED Model so far, and because it will contribute to the entire fiscal term in this fiscal year, we believe this model will represent a larger portion of hardware sales. Out of sell-through figures for the previous fiscal year, about 25% of overall hardware purchases were made by those who already owned a Nintendo Switch system.
About 30% of Nintendo Switch Lite unit sales were repeat purchases (demand for additional Nintendo Switch systems after the first) and 40% of Nintendo Switch – OLED Model unit sales were repeat or replacement purchases. In order to achieve our forecasted sales of 21 million units, it will be essential to maximize demand among both firsttime and repeat purchasers.
Furthermore, we believe the proportion of Nintendo Switch – OLED Model sales will grow along with the increase in demand for multiple systems. You are correct in your assumption regarding railway transportation of products to Europe.
One of the challenges for the current fiscal year is that, when we take our current production environment into consideration, it is very difficult to plan the transportation of products not only to Europe but also to other regions. Normally, we would build up our inventory during the summer and transport our products by ship early, so they arrive in time for the peak holiday season. However, when looking at the current fiscal year, we believe that we need to utilize other means of transportation including air more than usual, and we are planning based on that assumption.