Perrin Kaplan expects Wii shortages to 'last for some time'

by Ludwig Kietzmann { Apr 11th 2007 at 10:32PM }

Well, so much for "supply flowing" this April. "There is a lot going on behind the scenes in terms of working on what we are producing and the numbers continue to rise but the product is so very popular that we may see a supply / demand situation last for some time," says Perrin Kaplan, Nintendo's VP of marketing and corporate affairs. Further comments originating from a recent Game Theory Podcast basically amount to Nintendo doing the best they can against the ravenous and seemingly unstoppable Wii-wanting hordes.

Perrin provides assurances that Nintendo is aware of the problem (though she doesn't directly label it as such) and politely asks fans to "to be patient and to know that we are working on this as fast as we can." While the buzz and news generated by continued scarcity (see: this article) continues to be a valuable marketing asset, truly resolving production problems almost 6 months into a console's lifetime will be greatly beneficial to both Nintendo and clamoring fans. In other words -- come on!

[Via Wii Fanboy, Next-Generation]

Tags: Nintendo, Perrin Kaplan, PerrinKaplan, Wii shortage, WiiShortage

Reader Comments (Page 1 of 1)

thebiggameover @ Apr 11th 2007 10:38PM

i love that pic....

Raynre @ Apr 11th 2007 10:52PM

5.5 million sold in the last six months with lines still forming every Sunday, it doesnt take a genious to see that there are going to be shortages for a long time.

Rubang B @ Apr 11th 2007 10:49PM

Even with these supply issues, let's count the days until the Wii sales pass the total 360 sales, since apparently Microsoft hasn't sold a single 360 since Christmas. Either that or they never hit 10 million. I can't tell which happened.

SickNic @ Apr 11th 2007 10:53PM

I just can't comprehend how the Wii, which is made with current technology that is mass produced, can't make enough units to put on shelves. It doesn't make sense. If a PS3 (with blu-ray lasers), or an xbox360 (with a tripple core processor that isn't availible for anything else), can be stockpiled on store shelves, why can't something that uses the same components as a gamecube be put on shelves? Something just doesn't add up...

And before people jump down my throat and tell me the demand for Wii is higher, I want to mention that there were shortages for the 360 for a while too, but they finally got stores stocked after 5 months on the market...

john @ Apr 11th 2007 10:55PM

the GameTheory podcast (formerly NextGen.biz podcast) is one of my favorite video game podcasts. It lacks the sophmoric humor of most of them, and concentrates a bit more on the business side of things. Plus they've got British accents, so they sound smart.

tmmoore_nc @ Apr 11th 2007 10:56PM

How can this not be seen as a good thing? Whenver Kaplan speaks, she is quickly contradicted, and I don't expect this to be any different.

Avinash_Tyagi @ Apr 11th 2007 11:01PM

@Raynre:

Actually its at 6.5 million Wiis sold

Revo @ Apr 11th 2007 11:01PM

The Wii has sold 6.5 million in its first 5 months, so it's not as though Nintendo has exactly been slacking off.

Yes, you read that right: 6.5 million. 2 million in Japan, 2 million in Europe, and 2.5 million in North America. Don't believe me? See for yourself:

http://www.next-gen.biz/index.php?option=com_content&task=view&id=5183&Itemid=2

http://www.neogaf.com/forum/showpost.php?p=6011371&postcount=251

Rubang B @ Apr 11th 2007 11:05PM

@SickNic, 360 had shortages, but that was a year ago, so now they're all over the place, especially with the channel stuffing. PS3s are everywhere because nobody buys them. There, we've covered all 3 consoles.

john @ Apr 11th 2007 11:06PM

SickNic,

Because the Wii is selling way more, way faster than the PS3 or the 360. MS got Supply under control because demand died down, and the PS3 hasn't had a strong lasting demand. The Wii, however is still going strong. Now there may be a manufactured shortage, I don't know. But just look at the numbers:
-Wii has sold almost half of what the Xbox has sold (12 million vs 6 million) in about 1/3 of the time (18 months vs 6 months).
-The Wii has sold about twice what the PS3 has (6 million vs 3 million) in the same amount of time.

elopez75249 @ Apr 11th 2007 11:08PM

@4

Yes we know there were shortages but unlike the wii the demand went down! so thats why you see SO SO SO many PS3s and 360s in store shelves.

dsub @ Apr 11th 2007 11:09PM

SickNic-

I totally agree with you. Something just doesn't add up. Part of me just wants to say all this stuff that Perrin Kaplan is saying is all just part of Nintendo's plan. Notice that they keep reiterating the phrase "it's because the product is so popular".

I even called Nintendo themselves, and they actually have a line setup through there customer service to aid people in finding a Wii. In the end though, I really wasn't aided in finding a Wii at all. I was just told over and over again that Wii's are SO hard to find right now because they are just SO SO SO popular and Nintendo just can't keep up with the demand. I agree. Something just doesn't add up.

While the Wii is outselling the 360, it isn't outselling it my THAT much. The past two months it's been around 100,000 units more here in the US. Last month I actually think it was less than 100,000. Something to the tune of 280,000 to 330,000 or something like that. Anyways, the 360 is an easy find. It's made up of new(er) technology than the Wii, so it's more difficult to produce. Yet the 360 is an easy find and the Wii is near-impossible to find? Your right. Something just doesn't add up.

Please don't attack me as if I'm some Wii hating fanboy either. I'm not, but as someone who deals with the Wii shortage on a daily basis, I just have to question Nintendo.

reppy @ Apr 11th 2007 11:09PM

Yeah. All those Xbox 360s are really working out well for the people who bought 'em, huh? Doesn't seem like maybe Microsoft should have spent more time on quality assurance or anything, right?

oGMo @ Apr 11th 2007 11:12PM

6.5 million sold---big deal. This is not big demand. The original PS2 sold a million on the *first day* both in the US and in Japan. Yet within 6 months, they had sufficient supply and it was not hard to find.

What happened to "enough units for everyone who wants one"? This is, again, *essentially the same technology* the GameCube had, just with a few more MHz and another chip or so. DVD players are not hard to make. PPC isn't hard to make. They've cut GameCube production, GBA production, and DS Lite production is suffering.

What's the problem?

Mike @ Apr 11th 2007 11:16PM

Personally, I think they're picking and choosing where to resupply. My local Meijer hasn't had a single one restocked in a couple months.

This is simply a big ploy to imply demand when there isn't any. The PS3 and 360 are not "flying off the shelves," certainly not the PS3. For the Wii to not be available by now is definitely either faked popularity or covering up a failure to manufacture enough.

The problem is by the time the system is widely available, less people are going to rush out and buy it. They're simply forget about it and get it much, much later as an impulse buy.

ChewyDogg @ Apr 11th 2007 11:18PM

I have still never seen a Wii on any store's shelves. Crazy.

Ian Von Porter @ Apr 11th 2007 11:22PM

Meh, the way i see it. The spike in Wii sales are making up for the past 10+ years of N64 and GameCube mediocrity.

PS2 + PS3 still own 40% of the console market with only a handful of good games out for PS3. PS2! 7 years old! PS2! Same price as GC and XBOX... where are they?

arrrgh @ Apr 11th 2007 11:38PM

It really is HILLARIOUS that people still say that it's a purposefully manufactured shortage, dispite the fact that it is OUTSELLING the 360 (had a YEAR headstart on supply infrastructure) and the PS3 (but at half the cost this seems reasonable)

And don't tell me that PS2 didn't have the same problems, it's a much more congested industry right now, and many of the assembly plants are shared. When PS2 came out there was....Dreamcast...that's it. Xbox and GC came later. This is the same type of slander that was saying xbox DESTROYED GC last gen...when it was actually pretty close, the PS2 DESTROYED everything. The difference is that Nintendo has never lost money on a console. Can't say the same for Sony and MS

Anonymous @ Apr 12th 2007 12:01AM

The Wii is outselling the Xbox 360 and the PS3 because it's CHEAP, not because it's better (it's absolutely not) deal with it Nintendo fanboys.

And Nintendo IS purposefully (in a sense) holding back production on the Wii. Why? Because as the weeks and months go on, the console gets cheaper and cheaper, and their margins keep going up. And it costs alot of money to get new manufacturing partners with new factors etc. Why pay more, when people are going to buy your console whether it's on shelves now or in 3 or 4 months from now? It just makes economic sense. Also you get constant news stories (like the one this comment is addressing) that make people think "Wow, there is a shortage? This thing must be good!" (normal people, not us gamers that already know about the Wii). For example, my dad wants a wii, and he doesn't exactly know why. The news stories have put it in his head that the thing has got to be great.

Me? I'm sticking with my 360. Bring on that Halo 3 Beta!

Anonymous @ Apr 12th 2007 12:05AM

Lag for the lose ;_;

Revo @ Apr 12th 2007 12:12AM

"14. 6.5 million sold---big deal. This is not big demand. The original PS2 sold a million on the *first day* both in the US and in Japan. Yet within 6 months, they had sufficient supply and it was not hard to find."

Um... the PS2 released in Japan in March of 2000, and in the US in October. Sony only had to handle meeting demand one region for the first seven months of the PS2's life. During that time, Sony was obviously able to amass sufficient stock for its releases in other regions.

GJM @ Apr 12th 2007 12:23AM

"PS2 + PS3 still own 40% of the console market with only a handful of good games out for PS3?"

Your comment is like when Wilt Chamberlain scored 100 points in a single NBA basketball game and York Larese went around telling people that he and Wilt combined for 109 points in a single game.

notlwonk @ Apr 12th 2007 12:32AM

I don't want to rain on the fanboy parade, but the Wii is inexpensive to produce- they could easily ramp up to meet demand, but that would cut into their profit margins. Since they really don't see the 360 and PS3 as competitors at current prices (percentage-wise, not too many people buy the 360 core, so they are midway between the premium Xbox 360 and the PS2 in terms of price point). They have a nice niche, and they have no need from their point of view to spend lots of cash adding manufacturing partners. They are maximizing profit. Remember that Nintendo is the only one of the big three that refused to air ship consoles to improve launch numbers. Nintendo essentially made and sold exactly as many consoles in their fiscal year as they anticipated, because they did not make a lot of extra effort to ramp up supplies beyond their initial projections.

Some analysts thought they were holding back to improve their finances in the new fiscal year, but that apparently turned out not to be true. It doesn't make me happy, but none of the console makers are in business to make me happy, unless it makes them money in the long run. Nintendo is just a little more up front about it. I am guessing that they will add capacity for the fall in anticipation of a Microsoft price cut (I can't imagine a PS3 price cut that would matter, with the 20GB unit vanishing). We might even see the price drop to $199 when that happens, they really wouldn't want the core to cost much less than their unit.

Frankie @ Apr 12th 2007 12:34AM

I don't get this. why the meme of a "problem"? Nintendo is raking cash like they've never raked cash before!

6.5 MILLION WII SYSTEMS have been sold in the last 4.5 months. They have incredible supply. Only the dmand is actually more incredible. It's not a supply problem, it's a demand "problem". A problem both Sony and Microsoft would kill to have.

Ian Von Porter @ Apr 12th 2007 12:34AM

@23 .. do you realise that the PS2 is 7 freakin years old? Its ancient.. yet it still sells 300k units a month. .. in 7 years, is the wii gonna sell 300k units a month?

Anyways, using your analogy, it would be like if Wilt Chamberland were a 100 year old and the that guy was a noob.

Frankie @ Apr 12th 2007 12:35AM

@24

No, no they can't. Commissioning a factory is in the hundreds of millions of dollars, if not billions.

slacker164 @ Apr 12th 2007 12:53AM

Why do so many people think less complicated technology can be produced faster? That makes no sense. The bottle neck is not IBM pumping out chips; it’s Foxconn actually soldering PCBs. No matter how simple or easy to produce the chips are, you still need the capacity to turn them into an actual product. Assembling a Wii compared to a PS3 or 360 is not significantly different. The only difference is that Wii assemblers aren’t going to be twiddling their thumbs while waiting for poor yields to improve. Chip yields are not the problem here though; it’s how fast they can solder PCBs and stuff boxes. Nintendo didn’t expect this level of demand and therefore did not line up sufficient manufacturing capacity (not on the chip level, but the assembly level).

orange.micro @ Apr 12th 2007 1:18AM

what kind of idiots r standing in line for a wii? just wait till there r actually good games for the system. if ur itching for zelda get the gamecube version if u wanna play wii sports just go out and play the real thing. other than that there really is no good reason to get a wii until metroid comes out. ur falling prey to the wolves at nintendo who want u to believe that the intentional shortages mean that the wii is oh so much fun. well its not. the gimmick wears off quickly.

mooo @ Apr 12th 2007 1:24AM

@14 Ogmo

Check your numbers again. It took PS2 10 months to ship their first 6 million consoles, Wii has done that in half the time.

Terrak @ Apr 12th 2007 1:36AM

#20 "The Wii is outselling the Xbox 360 and the PS3 because it's CHEAP, not because it's better (it's absolutely not) deal with it Nintendo fanboys."

If price is the only reason the Wii is selling so well then why isn't the ps2 out selling the Wii? COnsidering that the Wii (currently) has mostly ps2 ports with slight graphical enhancements, why is the ps2 being almost half the price of the Wii not selling more? Also the core 360 is only US$50 more for HD graphics, so not much more expensive and yet it can't even match Wii's WW sales performance. I think you need a healthy dose of reality fella.

"And Nintendo IS purposefully (in a sense) holding back production on the Wii."

Please link us to conclusive evidence that they are doing this. If not please shovel your xbot nonsense elsewhere.

#17"Meh, the way i see it. The spike in Wii sales are making up for the past 10+ years of N64 and GameCube mediocrity."

PS2 + PS3 still own 40% of the console market with only a handful of good games out for PS3. PS2! 7 years old! PS2! Same price as GC and XBOX... where are they?"

So thats then, this is now, stop dwelling in the past. Wii is (currently) smashing all (but the DS) before it. Thats happening NOW. Time to wake up and stop dreaming.

Also i love those whiners who persist with the 'Nintendo is holding back Wiis to increase demand' nonsense. Let me spell it out for you

THEY PROMISED 6 MILLION SHIPPED/SOLD WORLDWIDE BY THE END OF MARCH 2007.

Guess what? They have done that, but Nintendo haters are looking for any excuse to rag on the Wii. What a joke. Hmm sony promised 6 million ps3s by end of March just like Nintendo, Have they done that? No, not even close. Any complaints? No?!? Oh isn't that interesting.
What about the 360. Didn't they promise 10 million 360s before the competition came out? What they also failed to deliver didn't they. Oh so Nintendo fulfils there promise and microsoft and sony fail and its Nintendo that gets the grilling? LOL hypocrites.

SickNic @ Apr 12th 2007 2:00AM

Ok, I read some of the replies, but I still think this whole thing is inflated. Wasn't there some confirmation before the Wii launch that nintendo had stock piled 4 million Wiis? That was before launch mind you.

WIth the 360 comment, I wasn't talking about now, after it's been out for a year. I'm talking about in March of 06, when the supply finally caught up with the demand. I still believe this shortage is artificial. I am not a doomsayer for Nintendo, I have a Wii and love it. I just think that with all the demand, it would behoove Nintendo to reach that demand...

driven2sin @ Apr 12th 2007 2:03AM

Wii & DS rulez - know this or hate

Sly @ Apr 12th 2007 2:14AM

The Wii is a $250 overprice ripoff of the $100 Gamecube! The so call sell outs are manifested lies by Nintendo! And that they can pad their numbers by exaggerating online sells. Bring it on.

VanGuardian1 @ Apr 12th 2007 3:48AM

Let's see, the Wii should be at just under 7 million by the 19th of the month, when North America's NPD data comes out. By that logic, between November and March, the wii has sold *almost* 1.4 million consoles per month worldwide. And it hasn't started slowing down overall in any region yet, with 1 confirmed 2.5 million in North America and 2 million in both Japan and Europe. Would anyone care to guess how long this will continue?

Btw, the 360 is finally going to be passing 10 million sold probably next moth.

http://www.vgchartz.com/

And at this rate, the Wii has a 50/50 chance of passing the 360's worldwide install base in July. How does that sound?

Ikitsumatatsu @ Apr 12th 2007 3:48AM

@ Sly:

Get off the computer. Daddy needs to do his important work now.

mattclarkie @ Apr 12th 2007 5:48AM

I look at it as the PS3 is outselling the Wii. It is over twice the price, so therefore people are buying it because they really want it and not because it is cheap. The Wii is selling out because morons are entranced by the 'Futuristic TV Remote' and not because it is a great multi-function gaming device.

Look at the safety hazard controllers, baby pineapple, they make gaming tiring, and it only costs £170.

Burnt Meatloaf @ Apr 12th 2007 5:51AM

The DS is also sold out in a LOT of stores. I suppose after having been on the market for several years, the demand has caught Nintendo totally by surprise.

Wise up, people. They just don't want to make too many so the novelty doesn't fizzle out too fast. Products are sold by their image, not quality.

*Slacker164: "Why do so many people think less complicated technology can be produced faster? That makes no sense. The bottle neck is not IBM pumping out chips; it’s Foxconn actually soldering PCBs."

Are you a moron? Why don't you go to a PCB manufacturer and ask that.

Hey, I've got a dual-layer board with 300 components on one side. It should take the same time to build as an 8-layer dual-sided board with 2,000 components, right?

Slaziman @ Apr 12th 2007 7:15AM

The GameCube and Wii chips are NOT the same. SAME ARCHITECTURE doesn't mean SAME chip. Okay? They don't overclock GameCube chips and put them in the Wii, they have to make new ones, as easy as that. So the "it's essentialy a GameCube" bullshit doesn't hold up, sorry. The chips may be easier to manufacture than 360 or PS3 chips, but guess what? They *are* putting out more chips than those two!

Lou D @ Apr 12th 2007 9:19AM

Well I used to work in a SMT plant.

Basically Foxconn gets more money making more expensive PS3 boards than Wii boards.

It's simple economics. Who do they want to please? They are probably unwilling to expand their plant to make extra Wii's but are meeting the originally contracted amount of between 1.3-1.5 million Wiis a month. Meanwhile they are probably making 800k PS3's a month but probably make more than double in profit on them vs. Wii boards.

It's been posted on other sites that Nintendo is looking for a second manufacturer. It just takes time. Even @ 16 million a year, the Wii would easily be the leading console maker with 112million installed base in 6.5 years...

Personally, I think demand is bound to shrink as people slowly get consoles in there hands. I know people who are still looking, but it's just a matter of calling stores and finding out when the shipments arrive and then actually being there when they are put on the shelf. It's not magic, just a little effort.

Dolla Dolla @ Apr 12th 2007 10:51AM

Oh Nintendo!

Don't you try to woo us with your facts of selling so many Wiis! We see right through them! 360 and PS3 are superior and cost more, so even if you sell twice as many Wiis, our precious HD boxs pull in more revenue with more choices!

BOO-YA-KA-SHA!

Brooks Williams @ Apr 12th 2007 11:08AM

I read through all these comments, and I keep seeing the same pattern:

Xbox 360 Supporter: OH NINTENDO BLOWS THEY ARE PURPOSELY KEEPING STOCKS BACK IT'S JUST A NOVELTY IT'S CHEAP AND STUPID WOOT GO HALO 3

PS3 Supporter: Well, the PS2 is still clearly selling very well, and it's definately selling more then the gamecube and the Xbox. And besides, the PS3 doesn't suck, it just costs twice as much and people are thinking that the PS3 is too awesome to pick up yet, so they're keeping the millions they have on the shelves as a testiment to how great Sony is, that's all.

Wii supporter: Guys, the facts are all there, and you can assume what you want, but just shut up, if you support the other guys, this is clearly not your topic.

Crono @ Apr 12th 2007 11:50AM

"The so call sell outs are manifested lies by Nintendo! And that they can pad their numbers by exaggerating online sells."

Admit it, you deny the holocaust happened too, don't you?

Because what you said is about as idiotic.

LongshotX @ Apr 12th 2007 1:00PM

Correct me if I'm wrong, but wouldn't it be more significant if the Xbox 360 reached a certain number as opposed to the Wii, seeing as how the Xbox 360 costs almost $150 more than a Wii?

I also think its funny how you Wii Fanboys are riding this train for everything it's worth (or isn't). I almost sense desperation. I mean Nintendo got its ass thrashed the past two generations, both time by newcomers Sony and then Microsoft. Now that Wii sales are skyrocketing you guys are going CRAZY, defending this console to no end like it is PERFECTION. But in my opinion Nintendo is just winning little battles here and their but it has been losing the War for a very long time. Read your history...

ZeroCorpse @ Apr 12th 2007 2:44PM

It's OK with me now. I wanted a Wii, but after not being able to get one for a few months, I finally just spent the video game fund on a PSP after the markdown. I'm getting some use out of the PSP, and I don't think I want a Wii anymore.

If Nintendo can't get product to market in MARCH and APRIL, when people have their tax returns and can blow a little cash on the side, they clearly aren't interested in getting a Wii into every home.

Whereas before I saw the Wii as a fun accessory to my 360, for playing Nintendo exclusives, I now see it as a quirky, gimmicky waste of time and something I wouldn't bother with.

I felt the same about my DS. I loved it for a while, and then it became apparent that almost every game was going to be a port of some other game with touch-screen controls as a gimmick, or a gimmicky touch-screen original game that, when you boil it down, isn't any different than the last touch-screen game in terms of control or gameplay elements.

I'm not a Sony fan-- I think Sony makes a lot of stupid mistakes and they're too damn arrogant-- but I have been getting more use out of my new PSP than I have gotten out of any Nintendo console or handheld since I owned a GameBoy Advance Micro (which was handy because it was small enough to keep on me all the time).

What I want to know is when someone's going to realize that the "candy bar" style of cell phones are super popular because people don't like having bulky objects in their pocket, and make a full-featured game system that is thin, light, and easy to pop into your jeans pocket and forget about.