Nintendo's Growth Restrained by Wii Production Shortages

Nintendo's failure to anticipate the demand for the Wii and its inability to ramp-up production are seriously restraining its growth. Furthermore, Wii console shortages have encouraged Microsoft and Sony to slash Xbox and PS3 prices and capture many would be Wii buyers.

The Wii shortage is best evidenced by the continuous sales of vast numbers of Wii consoles on eBay at substantial premiums above MSRP. Meg Whitman, the CEO of eBay, needs to send a special Christmas present to Satoru Iwata, Nintendo's CEO, thanking him for all the business the Wii shortage has brought to eBay. She might even suggest that Iwata invest some of Nintendo's abundant cash, which totals about $8 billion, in eBay stock while the Wii console shortage persists.

It is understandable when a manufacturer misses one Holiday selling season because of insufficient product. It is unacceptable to miss two in a row.

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bym051d4876d ago

I don't know that I buy it. I think there's just about as many Wii around as there needs to be.

Seems there's always 1 or 2 available. Any more and the perceived supply pressures don't exist and the demand for a desired object goes down.

Nintendo's done a great job keeping the supply and demand balanced well.

jackdoe4876d ago

I don't actively look for Wiis, not really interested in one, but I do think that Nintendo has hit a sweet spot in the supply for Wiis, selling enough, but not too much to keep them on top and to generate a sort of mystique with Wii ownership. Like an OMG you've got a Wii kind of feeling.

alaaji4876d ago

If you really want a Wii, you can find one. All I did was find a website that tracks supplies in all of the major stores and I got one within a day. Analysts talk about the shortage but if you are determined enough, you can get what you want.