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Customers, retailers agree: Wii drought done on purpose to build demand

It's been months since we reported on the Nintendo Wii drought that happened last year during the holidays. Today, surprisingly, there's still an apparent shortage of the console. Infendo, for example, was able to find out that people were still lining up 'til late at night in Wal-Mart just so they could get their hands on the ever so popular Wii.

This is one prolonged nightmare to those who still have yet to acquire the console. Imagine this happening to you on a normal day, at midnight, in the middle of March. People who were in the line were asked about their opinion regarding this matter.

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wiizy3415d ago

nonsense. the wii is just selling alot more then anticipated.

thedude176553415d ago

what the demand of your console by now then they are run by a bunch of idiots. they are intention with holding wiis or not producing enough to increase demand

crck3415d ago

or they have no confidence in their product. They expect the fad to die out so don't want to invest in starting more production lines. Take your pick its one or the other. But to still say they can't anticipate sales 16 months later? Sorry that dog won't hunt.

Voiceofreason3415d ago

Very true and Nintendo is after all a much smaller company then say MS or Sony. They have already admitted that it takes them 6 months to go from deciding to increase production to actually seeing those units rolling off the assembly line. They are at the point where the only thing they can do to increase production is build a new plant. They dont really want to build a new plant just to have Wii demand fade in a year or so and instead of 5 plants running at 100% they have 6 running at 80%. Nintendo has already said they are not sure how long this level of demand will stay. They are trying to play it safe and I think it is the right move. I'm sorry but when you sell every unit you make I don't think that builds false demand.

ItsDubC3415d ago (Edited 3415d ago )

I think the false demand is a result of Nintendo not having been able to meet real demand given the company's production capability. No one, not even Nintendo, thought the Wii would be in such high demand and given the fact that Nintendo overproduced the Gamecube, the company leaned toward more conservative production goals for the Wii from the beginning.

As we have seen, Nintendo quickly sells every unit it produces, which piques consumer interest because ppl know that product demand doesn't outstrip supply for no reason. There are enough Wiis to go around for consumers to know that demand for the Wii isn't exceeding supply simply because Nintendo is severely limiting its availability. A lot of ppl that want a Wii know ppl that already have one, so obviously Wiis can be found on the shelves somewhere.

So I think that Nintendo very wisely does not want to sign additional contracts for a predefined period of time to ramp up production for the Wii and risk a repeat of what happened w/ the Gamecube (ie overproducing while demand dwindles). A very nice side effect of this is that since Wiis are not being made available to consumers as fast as consumers want them, it magnifies demand even more. This magnification is made more significant by the fact that the Wii has more mass appeal than its competitors.

So if you consider Nintendo's logical reluctance to increase Wii production because of the unnecessary risk and fund expenditure involved as creating a purposeful drought, then I suppose I'd agree with you.

EDIT:

I notice a lot of ppl assuming that the Wii should be easy to produce given its hardware capability, and I'd be inclined to agree were it not for the hardware required to process motion control signals from the Wii remotes. I can't think of a time when such processors were in such high demand, but if someone can give an example of a household consumer electronic that requires this hardware and has met similar demand as the Wii, by all means feel free to point it out to me.

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Ricdog3415d ago

If Nintendo is doing this on perpose than let them. This is all about money guys and if this is the why the wii is outselling the ps3 and 360, than they're going to continue to do it.

meepmoopmeep3415d ago

conspiracy theories... lol... i'll get one soon. my friend works at EBGames now so he said he can hold one for me whenever i want. i just don't know if it's worth $300.

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