Nintendo suffering knock-on effects of Wii shortage

[malfunction]

Shortages do not create hype

It's free publicity surely? And being seen as selling out and winning the console war can't hurt can it? It does seem rather ridiculous for a 2nd year in a row. Either it's false or Nintendo are too cash strapped to ramp up production (surely someone like Asus is making these for them and surely someone like Asus would have capacity to spare?). Most odd of all is that some countries appear to have plenty while others have very little hence all the imports from mainland Europe... You'd think officially diverting between them would be a no brainer instead of encouraging 'grey' imports

[Stewart]

Ok, yes it can make Nintendo seem l33t.

But explain to me good sir, how seeming l33t can be better than making more money?

Nintendo are a company, not a kid in a school playground. The don't need kudos, or a good rep to get the slutty bird from year 10 to go out with them, they need cash in the bank.

You get this by selling units.

Unless I'm missing something, then the reason there are not enough Wii units to go around is because Nintendo can't make enough, ship enough, and get enough in stores.

Not because they are trying to look really cool and that guy.

And even if this was true, which it isn't, for every person who thought 'wow, the Wii is solded out everywhere, I better find out whats what and get one', there is a person who thinks 'hmmm, the Wii is sold out, I'll get a 360 \ PS3 \ other things then... cowboys, how hard can it be to get your stuff in the shops'.

[PenguinJim]

Also, ramping up production isn't as easy as one might think. If the "Wii Fad" ended tomorrow, and you've just bought factories to manufacture 3,000,000 Wiis per month, you'd lose a Hell of a lot of money.

They've increased production, but WITH HINDSIGHT we now know they could have safely increased production further.

[malfunction]

Ok, yes it can make Nintendo seem l33t.

But explain to me good sir, how seeming l33t can be better than making more money?

Nintendo are a company, not a kid in a school playground. The don't need kudos, or a good rep to get the slutty bird from year 10 to go out with them, they need cash in the bank.

You get this by selling units.

Unless I'm missing something, then the reason there are not enough Wii units to go around is because Nintendo can't make enough, ship enough, and get enough in stores.

Not because they are trying to look really cool and that guy.

Similarly can anyone explain why production cannot be ramped up sufficiently? The Wii, as much as I like it, is pretty much a 'gamecube++'... It should be relatively simple and cheap to make and big N say they make a profit on each machine. It's been selling well all year and it's selling like hot cakes again now. It is very likely made by a tier 1 OEM type company who ought to have plenty of manufacturing capability on demand. So if it's all so good why isn't supply being met? Surely even if big N had to take a hit on the profit margin of each machine and / or get another OEM involved (or the original OEM has to subcontract) more could have been made in the run up to xmas? It smells fishy to me and I wonder if it's due to some marketing, political or financial factor... Surely with the popularity of the Wii and DS Nintendo have enough money to get more product on the market regardless of how difficult it is to ramp up production? Surely they would have planned to stock pile some inventory for the run up to xmas and if / when they saw that this wasn't happening (i.e. everything they were making was still being sold) they would have increased production again?

(and anyway, I like a good conspiracy theory and am happy to see Nintendo doing well)

[PenguinJim]

Did you think, at the end of 2006, that the Wii would be the must-have item THIS Christmas, too?

It's quite easy and obvious to see why production cannot be ramped up sufficiently. There is no "make more Wiis" switch they throw in some factory somewhere.

[Stewart]

Demand is not being met because Nintendo can't make, ship and stock enough units.

The hype may help, but this is not some master plan to create hype, its a shortage of Wii units.

Not very interesting, but true.

[malfunction]

Did you think, at the end of 2006, that the Wii would be the must-have item THIS Christmas, too?

It's quite easy and obvious to see why production cannot be ramped up sufficiently. There is no "make more Wiis" switch they throw in some factory somewhere.

I'm not saying it's easy, just saying it's not so complicated. Smells of overly cautious predictions and a lack of confidence / lack of reactions at best, at worst it's a tactic to ensure demand is kept high to ensure a good foothold in the minds of the buying public and the supply chain... I'll admit I'm biased - I don't think Nintendo deserved the rough years they had with the N64 and Cube based upon the quality of the products they were putting out (thought the quantity of products may have had something to do with it)

[ScottY_]

One good thing came out of the shortage this yeat, i made a profit on my 1 year old Wii and crap, £89 profit ^_^

But they have had shortages almost constantly from release, maybe they need to get more factories.

[Stewart]

at worst it's a tactic to ensure demand is kept high to ensure a good foothold in the minds of the buying public and the supply chain... )

This is the buying public who are now pissed off because they can't just walk into a shop and buy a Wii when they want? That'll really help.

I think you are reading too much into it mate. Like all the 'ZOMG bush dided 9/11 so he could invade iraq' stuff.

Sometimes the boring truth is... well, the boring truth.

I just hope the $1billion dollar loss and hoards of annoyed customers was worth the foothold.

[Steve B]

my one question is how can they have lost something they never had in the first place?

[malfunction]

my one question is how can they have lost something they never had in the first place?

That (I think) was my original question - if they are selling everything they can make how are they making a loss?

[Karlos007]

i think its more a case of " if they had got it right, they could have made a futher £xxxx.......... "
maybe i bad choice of words onm hexus part, but u get the idea!