Wii shortage over by 2009?

March 30, 2008 at 1:21 pm 4 comments

So according to the clip below, North American gamers can expect more Wii’s in stores by the end of the year. The shortage was due to Nintendo allocating more units to Europe because of the strength of the Euro over the U.S. dollar. Makes sense to me.There’s been a lot of speculation as to what caused the shortage, or if Nintendo purposely held back shipments in order to increase demand.After reading article after article, and listening to the enthusiast press via various podcasts, I think that the shortage is legit. Meaning, Nintendo is not holding back shipments of the Wii in order to create demand. While it would make sense for them to do so, say the 6 months post-launch (what I’ve dubbed Wii Day), it wouldn’t make much business sense for them to continue nearly a year and a half after.Link VS Link

It’s no question that the Wii and the DS have become the kings of the industry, from a profit standpoint. Nintendo is the only console maker of the 3 that continuously makes a profit from each unit sold. Prior to Wii Day, the public was split on whether or not Nintendo’s new motion-sensing control scheme was going to make up for last-gen graphics and processing power. While the jury is still out on that ruling, it’s obvious that Nintendo has struck a chord with the Average Joe consumer.

If Nintendo really was holding back shipments, I’m sure it wouldn’t sit well with stockholders, who would see an opportunity for the company to make more money if they can ship more product. Since there hasn’t been a regime change at Nintendo or some massive flight of shareholders from the company’s ranks, I’m going to assume that the system drought was real and Iwata, Fils-Aime, and all the Nintendo higher-ups have done everything they can to assure their shareholders that they really are shipping systems as fast as they can produce them.

Anyway, I think it will still be hard for the average consumer to find a Wii this year, considering Smash Bros. just launched (I posted a blog earlier in the month about my experience at a Best Buy that got a shipment of Wii’s the same day as Brawl went on sale), and both Mario Kart and Wii Fit hit North America in April. By the way, while I’m still up in the air about getting Wii Fit, I know that game will be an absolute monster and destroy the sales charts as the year continues, possibly outselling GTA IV in the long run.

Click on the link below to read the entire article.

(Mario Kart Wii image from 1up.com, Smash Bros. image taken by myself using in-game tools)

clipped from www.dallasnews.com
During the course of the interview, the analyst, Michael Pachter at Wedbush Morgan, said the real culprit for the Wii shortage in the U.S. is the weak dollar.
With a weak dollar, foreign companies that sell their goods in the U.S. for dollars and then convert those dollars to their native currencies get a smaller profit than if they sell their products in countries with strong currencies of their own (such as Europe with the euro). In other words, Nintendo makes a bigger profit on Wiis sold in Europe than on Wiis sold in the U.S.
So Nintendo, Mr. Pachter said, has been behaving perfectly rationally by sending excess Wii consoles to Europe to satisfy the more profitable consumers there.
But now that demand in Europe is subsiding to normal levels, those surplus consoles will be redirected to American gamers, Mr. Pachter said, and the Wii should finally become more plentiful in the States later this year.
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Entry filed under: Technology, Video Games. Tags: , , , , , , , , , , .

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4 Comments Add your own

  • 1. Chris Moran  |  March 30, 2008 at 1:36 pm

    Nice writing style. Looking forward to reading more from you.

    Chris Moran

    Reply
  • 2. lady  |  March 30, 2008 at 5:09 pm

    it will be silly of them if they hold back the Wii. Probably they weren’t able to produce as much as the demands that keep rolling in. And yeah, don’t forget about the ebayers who bought tonnes of Wii to be sold at a greater price. That makes it hard for real people who really want a Wii.

    Reply
  • 3. littleman00  |  March 30, 2008 at 5:47 pm

    I agree. While I was tempted to sell my Wii right after launch, I’m glad I didn’t because trying to buy a replacement one would have been near-impossible.

    Reply
  • 4. wii fit  |  April 21, 2008 at 8:14 pm

    Good product I like wii.
    http://www.usbuystore.com
    http://www.unlimit-game.com

    Reply

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