According to reports, Nintendo Switch will start to reduce the size of the battery version box by 20% from August. The company claims that it is doing this to improve transportation efficiency and to increase supply. However, this new change to the box size will not affect the OLED version. Nintendo officially stated that the purpose of this is to plan for commercial competition at the end of the year. Shrinking the box can increase transportation efficiency and increase supply. At the same time, due to the shortage of parts such as semiconductors, we can only increase the utilization of air transportation space, reduce logistics costs, and minimize the loss of sales costs.
Nintendo Switch price hike to reflect costs?
Nintendo President Shuntaro Furukawa said that he would not consider raising the price of the flagship game console Switch to help ease the gap in the increasing production and transportation costs, so as not to scare away consumers. “We are competing in a global multi-entertainment environment, and we always think about pricing in terms of the entertainment value we provide,” Furukawa said.
He said that Nintendo Switch has sold 100 million units so far, which is not conducive to maintaining the company’s overall business momentum. At the beginning of August this year, Nintendo confirmed that it does not plan to increase the price of the Nintendo Switch in Japan. Bloomberg recently asked the publisher and other console makers Microsoft and Sony about the possibility. Nintendo responded that there are currently “no plans” to increase prices.
Currently, the yen is depreciating, down 21% over the past year. As a result, electronics manufacturers have been raising electronics prices slightly to compensate. Game consoles are currently $100 cheaper around the world except in Japan. The big three console developers all have reason to worry that raising console prices will make players and developers uncompetitive.
Fire breaks out at Nintendo’s Japan headquarters
According to NHK reports, at 1 pm local time in Japan on August 15th, a fire broke out on the third floor of the development building of Nintendo’s headquarters in Kyoto, Japan. The table and chairs in the room were partially burned in the fire but there were no casualties. After the fire broke out, eight fire trucks rushed to the Nintendo headquarters. However, the fire was put out by employees before they arrived at the scene. Police and the fire department are investigating the cause of the fire. The fire may have been caused by an electronic device that was charging.
Just a few weeks ago, Nintendo made a contingency plan for its Japanese headquarters in case a disaster such as a major earthquake affects the operation of the headquarters.
In a shareholder Q&A, Nintendo President Shuntaro Furukawa claims the company has a strong plan in such situations. Thus, even if there is an earthquake or fire outbreak, it will still continue operations. “Even if our business continuity faces natural disasters such as earthquakes we will continue to operate. Even in cases of dangerous infectious diseases that are highly contagious and can lead to serious medical conditions, we have response plans. There are also various proactive measures so that we can resume operations as soon as possible.”
“In the event of a disaster, we will convene a disaster response committee which the president leads. The committee will take action to confirm the safety of employees and protect the integrity of company property. It will also ensure the safety of personnel and communications systems for recovery efforts.”
Shuntaro Furukawa also claims that Nintendo has taken other steps. These steps include creating data backups and using multiple manufacturing partners to ensure any disruption is minimal.