Wednesday, November 14, 2007

Nintendo facing some Wii hurdles this holiday season


Globeandmail.com: Wii are the champions

Retailers report they are selling out Wii units almost as quickly as they can get them, and Nintendo acknowledges it just can't keep up with demand.
...
Nintendo is trying to make the units faster, but can't keep up. It has already sold more than nine million Wiis around the globe, and is now churning out 1.8 million a month.
Twice in the past six months Nintendo has boosted its sales forecast, and it now says it will ship 17.5 million Wii units in the current fiscal year that ends in March.
Ron Bertram, general manager of Nintendo of Canada Ltd., said the company is making more hardware than ever before. “We're shipping boatloads of product [but] the demand has just been extraordinary.”

BBC.com: Nintendo warns of Wii shortages


"The demand for Wii hardware globally has been unprecedented and higher than Nintendo could ever have anticipated," said a spokeswoman. "Nintendo is now in a position in which seasonality demand trends are being broken, therefore the demand for Wii hardware is constant throughout the whole year globally. Due to this phenomenon it is possible that the demand for Wii hardware may outstrip supply," she said.


Sometimes, a bigger hazard than not enough business is too much business.



However, I think that no matter how you slice it, this holiday selling season will see Nintendo as the big winner. Either Sony or Microsoft would really have to have something BIG up their sleeves to take the wiind* out of Nintendo's sails (sales?), and so far, there's been no sign that they have anything like that kind of firepower.



*sorry.

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1 comment:

Anonymous said...

The interesting thing is that in a classic supply/demand situation, if the supply can't be met, one of the options is for the customer to seek out a suitable substitute. Seeing none (read: people still won't buy a PS3), the consumer decides to wait.

A good Nintendo pricing analyst would recommend that they raise the price a Wii-bit since the market appears to be rather inelastic.