Nintendo President warns of Wii shortages

[Shadrack]

I think they are over-hyping as well.

[HTF]

yeah, there def trying to hype it up for the holiday season.

[afusion]

Eh people will wait for the Wii HD :laugh:

[PiracyX]

I have been saying the same thing since the thing released. I let it off for the first Christmas since it launched in December in the UK, but coming on a 3rd Christmas and still shortages?

They are creating hype and holding back stock and have been since 6 months after it launched.

That's all there is to it. You know, We know, Even Nintendo know it.

[Joel]

yeah, there def trying to hype it up for the holiday season.

For 3 Xmas seasons?

[Mathachew Veteran]

For 3 Xmas seasons?

Well it makes sense. Christmas time is when people go nuts buying things. What's one Christmas compared to another? It happens every year.

[freeza]

love the wii 8-)

[Joel]

Well it makes sense. Christmas time is when people go nuts buying things. What's one Christmas compared to another? It happens every year.

Yes, but it's like that in all of the other months of the year also. What's the explanation for that?

[The Teej]

Yes, but it's like that in all of the other months of the year also. What's the explanation for that?

Their wish for it to be christmas every day came true? :p

[peacemf]

im suprised ppl have money!!

most ppl are loosing their homes, but happy to buy a wii by the looks of things

[Mathachew Veteran]

Yes, but it's like that in all of the other months of the year also. What's the explanation for that?

That's true, Christmas is just another time of the year, but for some buyers it may be the time they finally go to get the product (as opposed to getting it at any given time), which is not unheard of (making a special or big purchase because it's Christmas time).

The explanation, or speculation, is that Nintendo won't increase production to meet the demand, thus inflating the shortages. People could have the expectation that because it's Christmas, stores may have extras in stock, and the warning here is that shortages should be expected (since Nintendo is showing no signs of putting more out).

I'm no conspiracy theorists, but what's being speculated about the Wii shortages makes a lot of sense, especially since most of the technology in the Wii has been around for over seven years.

[Joel]

... especially since most of the technology in the Wii has been around for over seven years.

This isn't about a component shortage. No one said there aren't enough widgits to make Wiis, just that they can't physically assemble them fast enough. That's why people keep saying Nintendo should build more fabrication facilities.

[The Teej]

And considering they have more money then god right now, building a couple of extra facilities should hardly break the bank now.

[Scorbing]

This is absolutely ridiculous. Didn't they learn anything from last year? You would think that after last year, they would double or maybe triple their Wii production for this year's Christmas.

[DELTETHISACCOUNT]

This is absolutely ridiculous. Didn't they learn anything from last year? You would think that after last year, they would double or maybe triple their Wii production for this year's Christmas.

Purposely limit supplies in order to keep demands high, it's been their strategy from the get-go.

"If it works, why change?"

That's probably the way they see it.

[MMaster23]

Indeed .. if you keep supply limited, demand will (for some psychological reason) remain high.

I'm guessing low stock would make it seem like it's still in high demand and therefor there actually is more demand.

You see it more often in de banking business .. if a lot of people think something is going to happen, it will.

Due to the small actions people undertake after thinking about it.

The effect has a name .. just can't remember it right now...

[MasterSasuke]

HA!

I would love to see SONY or MICROSOFT keep up

demand "if" thier consoles EVER sold as meny as NINTENDO'S.

[The Teej]

HA!

I would love to see SONY or MICROSOFT keep up

demand "if" thier consoles EVER sold as meny as NINTENDO'S.

Uhh, but Sony's demand for the PS2 was this high only last generation, and they kept up fine :unsure:

[MasterSasuke]

PS2's demand was never as high as the Wii's

[Razorwing]

I haven't touched my Wii in a while.. lol. The thing is no really good games have come out. The last game I purchased for the Wii was Brawl. lol

[Coldgunner]

Stuff like this starts to make me believe Nintendo are creating artificial demand instead of true demand. I mean they really should be thinking ahead with regards to manufacturing, they failed on it the last two Christmas'.

[Joel]

And considering they have more money then god right now, building a couple of extra facilities should hardly break the bank now.

It WOULD ruin their profit margin on the Wii, though. If you paid x dollars to build one plant, and based your cost per console on that figure, building more raises your cost. Let's say they could put out double the number of Wii's if they had 2 identical plants, but they couldn't SELL double the number that would make that plant a going venture. Now what? Lost money on each Wii sold?

[gunnerhkjp]

I think all the production for Wiis are outsourced.

I'm not even sure if nintendo owns any factories.

[The Teej]

It WOULD ruin their profit margin on the Wii, though. If you paid x dollars to build one plant, and based your cost per console on that figure, building more raises your cost. Let's say they could put out double the number of Wii's if they had 2 identical plants, but they couldn't SELL double the number that would make that plant a going venture. Now what? Lost money on each Wii sold?

They're ruining their profit margins by not producing enough Wiis to meet demand. Methinks they could easily sell double if they produced double but kept up the illusion there's some sort of stock shortage.

[Joel]

They're ruining their profit margins by not producing enough Wiis to meet demand.

What's the logic on that? A console wouldn't start costing them money until they made it and it sat unsold.