Wed 17 Sep 2008
Wii Shortage For Christmas
Posted by Matt under Business , Games , Hobbies , Products , Technology , TrendsNo Comments
I caught an article the other day on how Nintendo is expecting shortages in it’s Wii production through the holidays. This has been a problem for the last three years.
Historically, Nintendo tends to be a little conservative in it’s production, no doubt due to it’s smaller size, it can’t afford over production like many of the big companies such as Sony or Microsoft; still, Nintendo has years of experience in the industry, and it’s a little surprising that they are having difficulty meeting demand after three years of sales. It just goes to show however that the innovative nature of the Wii is a great selling point, and shouldn’t be underestimated. Sales for this system just keep going up and up.
The thing about retail and the seasonal shopping season is this, most retailers do not turn a profit until after the holiday season. Without adequate and in demand products on the shelves, sales numbers go down because retailers don’t have anything to sell. Retailers don’t like this, and may give you less favorable shelf space in favor of products they can sell more of…reducing your marketability.
Further, Nintendo in their infinite wisdom has lost the sale of the Wii’s it couldn’t produce, which is less money for them initially, and more on the back end since they’ve failed to sell any periphreals or games for those systems. Also, if a customer decides to buy a X-Box or Playstation instead, then the entry cost for that customer has just gone up…because it’s going to take a lot more marketing dollars to get them back.
Near as I can figure, that’s why X-Box 360 is the number one system right now, since the system is cheaper and more available than the rest.
Honestly though, I think I’d rather have a Wii…they make it look fun.
Wii shortages expected through holidays…again