Nintendo World Report Forums

NWR Interactive => TalkBack => Topic started by: Crimm on March 18, 2011, 08:28:12 PM

Title: Earthquake and Tsunami Will Not Affect 3DS Release Plans
Post by: Crimm on March 18, 2011, 08:28:12 PM

The natural disasters in Japan have not impacted Western launch deliveries of the new handheld.

http://www.nintendoworldreport.com/news/25746

Nintendo Co. Ltd. has confirmed that the earthquake and tsunami that struck Japan last week will not affect their plans to release the Nintendo 3DS later this month, nor do they see it impacting future shipments.

In a statement, the company confirmed that the ongoing effects of the natural disasters have not "significantly affected" business operations "so far." The company would not state if a continuation of the ongoing blackouts and fuel shortages would affect 3DS manufacturing going forward.

While the 3DS itself is assembled at factories in China, it is unclear if manufacturing or transportation of the component hardware has been impacted by either the devastation or the after effects.

Title: Re: Earthquake and Tsunami Will Not Affect 3DS Release Plans
Post by: Bman87301 on March 18, 2011, 08:55:52 PM

Umm, isn't this just overstating the obvious? Since the hardware is neither manufactured nor warehoused in Japan why would it be effected? Especially, since the marketing outside of Japan is all handled by local subsidiaries there's no reason I can see to assume it would affect anything in foreign markets. Besides, unless I'm mistaken, with the launch just weeks away, shouldn't the initial hardware shipments already be manufactured by now and shipped to local warehouses?

Title: Re: Earthquake and Tsunami Will Not Affect 3DS Release Plans
Post by: oohhboy on March 18, 2011, 08:59:06 PM

The fuel shortages will eventually hit Nintendo too as I have no doubt many of the components are manufactured in Japan that must be shipped to china for assembly. This will most likely entail a cost rise in day to day operations as many of Japans refineries remain damaged, offline or reduced in capability (http://www.tcetoday.com/latest%20news/2011/march/japanese%20industries%20badly%20damaged.aspx). However, I would not rule out stoppages or some form of temporary rationing or import/export restrictions due to damaged ports.

Unlike car manufactures which have much longer and complex supply chains, Nintendo's are relatively quite short, which means even given expected power shortages which are planned well in advance means that the effect on production should be relatively small as power usage are a fraction of that needed to make a car. In particular this will affect the 3D screens which are made in japan.

I expect in the long term to be some hiccups and some reduced capacity which will only be noticeable to Nintendo themselves. Launch will of course not be affected as the units are already in the pipe.

Title: Re: Earthquake and Tsunami Will Not Affect 3DS Release Plans
Post by: Bman87301 on March 18, 2011, 09:15:55 PM

Quote from: oohhboy on March 18, 2011, 08:59:06 PM

The fuel shortages will eventually hit Nintendo too as I have no doubt many of the components are manufactured in Japan that must be shipped to china for assembly. This will most likely entail a cost rise in day to day operations as many of Japans refineries remain damaged, offline or reduced in capability (http://www.tcetoday.com/latest%20news/2011/march/japanese%20industries%20badly%20damaged.aspx). However, I would not rule out stoppages or some form of temporary rationing or import/export restrictions due to damaged ports.

Unlike car manufactures which have much longer and complex supply chains, Nintendo's are relatively quite short, which means even given expected power shortages which are planned well in advance means that the effect on production should be relatively small as power usage are a fraction of that needed to make a car. In particular this will affect the 3D screens which are made in japan.

I expect in the long term to be some hiccups and some reduced capacity which will only be noticeable to Nintendo themselves. Launch will of course not be affected as the units are already in the pipe.

I'm sure there will definitely be some effects on future production, but there's no reason to think it would affect the launches in outside territories. The initial shipments should already be stockpiled in local warehouses so the launches should already be prepared, that's my point.

Title: Re: Earthquake and Tsunami Will Not Affect 3DS Release Plans
Post by: oohhboy on March 18, 2011, 10:39:54 PM

The quake will eventually catch up on Nintendo. Warehousing costs money and most production to retail supply chains are designed to be "Just in time" in order to minimize costs. While you might want to warehouse a given amount of finished product so you can feed it to retail, warehousing components is not something you do. There is local factory storage, but that amount is always based on the assumption that every X day more will arrive. So if one part runs out, the whole production schedule goes out the window. You either stop work, or you slow down. This increases cost either way.

Most of the real technology found in the 3DS is made in Japan and cannot be sourced else where. Things like the iPads, mobile phones (http://www.bbc.co.uk/news/business-12782566), are already affected. This is done for a good reason. Japan and it's companies don't want their industrial technology copied by China, so only gives them the grunt work like plastic molding and assembly.

Until infrastructure is back up to speed, disruptions will continue. Remember that Nintendo isn't the only one using those port facilities. Japan has to import more fossil fuels to make up for lost nuclear power and the ports are one of the things that took a lot of damage especially the ones that handle oil.

I would say that Nintendo is understating their position as they just don't know what is going to happen as they don't own the supply chain or any part of it. I have no doubt even their suppliers are sure how many of anything they can make.

Their statement is actually contradictory, in the first sentence, they reassure that future shipments will continue. Then in the third sentence.

Quote

The company would not state if a continuation of the ongoing blackouts and fuel shortages would affect 3DS manufacturing going forward.

In fact your second sentence is wrong.

Quote

Umm, isn't this just overstating the obvious? Since the hardware is neither manufactured nor warehoused in Japan why would it be effected?

Everything of value is in Japan. You can't just get China to make plastic clam shells to sell off promising to fill in the parts in later.

Title: Re: Earthquake and Tsunami Will Not Affect 3DS Release Plans
Post by: NintendoFanboy on March 19, 2011, 08:31:07 AM

i thought the whole thing was made in china. interesting info.
 i was  thinking its made in china and the u.s. office could cordinate
 shipping, but it sounds as though its more tied to Japan
 then i thought.  Thanks for the info.
 
 While shortagages and delays would be annoying
 lets remember that thousands are dead or missing.
 in the long run, our petty hardware concerns arent that important.