Nintendo: Wii shortage causing planning problems
by Kyle Orland 
{ Dec 20th 2007 at 7:30PM }
When Reggie Fils-Aime talked to Reuters a few days ago, we were so focused on the Nintendo of America president's displeasure with unofficial Wii bundles that we didn't even notice the Reggginator acknowledging the business problems Wii shortages are causing his company. "The level of demand we are facing complicates all of our future business planning," Fils-Aime told Reuters. "All of that becomes a much tougher exercise until we have supply and demand curves that intersect."The hard-to-predict hardware supply complicates other company decisions, Fils-Aime said, such as how many units of Wii Fit to produce. "We at Nintendo America are focused on getting to the point when any consumer can walk into any of our retailers and find a Wii," he said. "Then we can plan, on an ongoing basis, the rest of the business."
It might seem a little ridiculous for Fils-Aime to be complaining about the problems the shortages are causing Nintendo. After all, if this was really a concern, couldn't they just spend whatever it takes to turbo-boost the supply chain? Then again, that added expense could become a liability down the road if and when the current Wii mania eventually starts its downturn. Whatever the case, we're pretty sure that any supply problem so dire that it forces a company to pull advertising is less than ideal. We're just saying, is all.
Reader Comments (Page 1 of 2)
vidGuy @ Dec 20th 2007 7:38PM
Here's the thing: to have that many Wii's on hand now, Nintendo would have had to make twice the investment in production facilities before (or very shortly after) launch. If the Wii tanked, we'd be talking about how stupid it was for Nintendo to produce 1.8 - 3 million more consoles a month than they could sell. Hindsight's 20-20, right?
As you've said, Nintendo can't really up production facilities now. Most likely, by the time those consoles would hit store shelves, demand would be lower than it is now, making the extra investment a costly error. Unless, of course, demand DOES stay high, in which case Nintendo SHOULD have invested in more facilities
Catch-22s all around, huh?
jovin6 @ Dec 20th 2007 8:31PM
No. Not really. It would be a Catch-22 if building new production facilities directly caused demand to fall.
Perhaps you should reread that passage. :P
hvnlysoldr @ Dec 20th 2007 11:18PM
Err that was the point. Don't build more but can't sell them losing potential business. Or build them but can't sell them resulting in losses.
Brucie B @ Dec 21st 2007 5:10AM
Forget this Crap!! I'm Picking up a Vii!!! Take that Nintendo!!!
a ham sandwich @ Dec 20th 2007 7:41PM
im glad to see this, actually, because to me this shows that they are genuinely concerned about the shortage, and are not using it as an "excitement builder" as is often criticized.
jovin6 @ Dec 20th 2007 8:38PM
*Shrug* They have a fair amount of monopoly power and would be stupid to waste it by not under-producing.
But this does show that even they did not intend to generate a shortage this extensive.
jovin6 @ Dec 21st 2007 8:22PM
Why did this comment get voted down? Does no one here legitimately understand that this is how all rational companies function?
pantera6 @ Dec 20th 2007 7:46PM
anybody remember the days of limited discs being supplied to stores and actually needing to pre-order games?!
im just thankfull that nintendo wasn't in charge of selling Turkeys for christman. "we find it pointless to increase the amount of Turkeys we supply for this christmas... just incase not enough people buy our Turkey and get veel instead (insert PS3 joke which amuses you the most)
tmacairjordan87 @ Dec 20th 2007 8:04PM
oh god i remember those days. It was so bad for some games, like ocarina of time in my case, that even with a preorder they sold out and I had to wait 2 weeks until a shipment came in that i was able to get to >.
roxxxo @ Dec 20th 2007 8:16PM
oh snap 2 weeks
Howl @ Dec 20th 2007 8:07PM
Yeah it must be hard for Nintendo, I'd hate to be at a company thats selling a million consoles a month.
John Watts NDF- Ring of Link @ Dec 20th 2007 8:16PM
The only thing gay is PS3
Big Ed @ Dec 20th 2007 8:40PM
Easy gentlemen, let's tone down the gay-bashing.
plyx @ Dec 20th 2007 11:09PM
Howl, proasps3, nickersox, and John Watts are all the same person. Click the profiles.
Negativecool @ Dec 20th 2007 11:53PM
BigEd, U R MR GAY.
plyx @ Dec 20th 2007 8:08PM
I wish a videogame journalist with some integrity would perform a serious investigation into the Wii's production (or lack thereof).
plyx @ Dec 20th 2007 8:11PM
Also, concerning that "pulled advertising", I've seen plenty of Mario Galaxy commercials and a few others since that announcement was made. I think Mr. Fils-Aime is a marketing genius, but extremely full of shit.
Nick the Hero of Canton @ Dec 20th 2007 8:21PM
Hmmm...odd, I haven't seen a single ad since the announcement for any first party title. I've seen a few for some Naruto game though
whatever @ Dec 20th 2007 8:49PM
People forget that these mega companies don't make a turn on a dime. A lot of their decision were made months or even years ahead. They probably planned the advertisement budget way in advance and signed contracts.
It's unfortunate that Nintendo couldn't maximize on the demand. But let's not forget that their business is not in an industry that they can forecast easily. What's hot today might not be next quarter or year.
FK @ Dec 20th 2007 9:04PM
Plyx : Marketing genius and extremely full of shit are one and the same.
plyx @ Dec 20th 2007 9:54PM
@FK:
Bingo.
Tatticus @ Dec 20th 2007 8:41PM
could it be possible to be too successful?
Zoesch @ Dec 21st 2007 11:13AM
It is possible, look at Commodore for example, MASSIVE success with the C64, moderate success with the Amiga and bankruptcy soon afterwards, why? Because they kept trying to pull a second hit and it drained their finances in the process.
LaughingTarget @ Dec 20th 2007 8:47PM
Nintendo is fine. It isn't like someone that can't find a Wii will go, "Oh well, may as well buy a 360 or PS3". They'll just hold off until one is available to buy. The supply will eventually catch up as demand inevitably drops and production efficiencies boost production in existing plants. It will slow down, the question is when. Nintendo isn't in any dire straights, the Wii is selling fast enough to make it appealing for software manufacturers. It isn't like they're saying, "Damn, Wiis aren't on the shelves, but the other consoles are and even though they sell fewer units, we should focus our efforts there, just because there are units on the shelves."
Geist @ Dec 21st 2007 3:45AM
The people that call in everyday to Gamespots and EBs and Walmarts for a Wii agree with your statement.
NoHitHair @ Dec 20th 2007 9:09PM
"After all, if this was really a concern, couldn't they just spend whatever it takes to turbo-boost the supply chain?"
You can't possibly be serious. Companies can't simply pull manufacturing plants from the depths of their asses to comply with public demand. There's much evidence to suggest Nintendo has been bending over backwards to help accomodate the Wii craze (such as employing manufacturers that normally have nothing to do with the industry).
Oversimplifying something as complex as business and manufacturing into "just spending whatever it takes" is a little ridiculous.
silverfox @ Dec 20th 2007 9:15PM
i have a question, if there wasn't a wii shortage would that decrease the hype/demand and as a result decrease the sales?
vidGuy @ Dec 20th 2007 11:30PM
The short answer is no. The long answer is maybe, followed by about six paragraphs of explanation. Basic econ would suggest that there's no real incentive to purposely restrict supply, causing a shortage. A more in-depth analysis would show that the extra media attention and similar factors do spur sales.
But, the kicker is that Nintendo is producing and selling more units per month than the others. You can't really claim they are holding back supply when they are outpacing the competition.
Wales @ Dec 20th 2007 9:28PM
I am not trying to rattle any fanboy cages here but i still don't get it. I own a Wii and have since the beginning. I don't buy games for it because they are ugly and terrifyingly innacurate. I just rented Transformers for the Wii for my kid and what a mistake again. Shoud have got the thing for the 360 - it would have looked and controlled a lot better.
Paviel @ Dec 20th 2007 10:05PM
Not trying to rattle your cage either, but I suspect you wouldn't be averse to selling your Wii since it isn't working for you.
If you think that all of the Wii games are ugly and terrifyingly inaccurate, though, I'll venture a guess that you've just been picking up the wrong games. (That certainly hasn't been my experience with Metroid Prime 3 or Mr. Gay.
roxxxo @ Dec 20th 2007 11:31PM
try zak and wiki, i played a couple hours today and it's great
vidGuy @ Dec 20th 2007 11:32PM
"Transformers"... hmm?
I own a 360 and a Wii and have had Nintendo's gift since launch day. Own 9 games for it, and suffice it to say I'm very happy that Transformers is not in that bunch.
hegemonyhog @ Dec 21st 2007 7:43AM
You rented a licensed movie game...and it's bad?
O noes!!!1!
Jerk Face @ Dec 20th 2007 9:29PM
Reggie can cry his tears with all of that money they've made.
soul4sale @ Dec 20th 2007 9:54PM
"Then again, that added expense could become a liability down the road if and when the current Wii mania eventually starts its downturn."
Ha. Haha. HAHAHAHAHAHAHAHAHAHAHAHAHA! Oh, keep on wishing, you hardcore twats. It's deja vu all over again. I can't wait until next year when you're still trying to call the top speed of this train. "I swear, any day now, people are going to stop buying Wiis like they are made of solid crank! It HAS to stop!"
Sorry, kiddies. Despite desperate claims from Sony that it will pull its head out of its ass eventually and save hardcore gaming, the writing is on the wall. It's old people and casual time from here on out.
Word to Sony and Microsoft - get cracking on a FPS/MMORPG that can be played with a beer in one hand and special controller in the other. Cuz that's the only way you'll ever make money on your mammoth investment in those two waffle irons you call systems.
Jess Q. @ Dec 20th 2007 11:13PM
Ahahha, are you serious? I think Microsoft is doing just fine.
I previously loved Nintendo and Sony, but not this generation:
I got a 360 before any other next gen system. I love it. I specifically avoided getting the first Xbox, but I was dying to get this after I saw it in action. I have never been disappointed with it.
I've never paid extra for online features before and didn't think I ever would, but I have paid for a year's worth of Xbox live and I find it's totally worth the $50.
I have a Wii and I literally never use it. No games are that entertaining, they look awful on the big tv, the internet connection is shotty, and nothing works very fast or well. It's also frustrating to be accurate with the remote. I've owned every Nintendo console since the NES. This is the first one I regret getting.
I'm not saying the Wii isn't immensely popular. I just think it's sad that it's basically popular because it's marketed to idiots who can't be bothered with pressing buttons or, god forbid, high definition, in a time where even the cost-cutting SciFi channel is broadcasting in HD now.
It's popular because it's cheap and you can like, move around a lot. You know, like monkeys do. It was a nice novelty for the first week. Then no games really came out for it. I moved on.
And no, I don't particularly play FPS's, so don't bring up that argument. I'm not good at them, anyway, and don't find them to be that fun. I like the sort of stuff that was mostly on the PS2, and it seems to have moved itself over to the 360, so that's where I went. If it wasn't for Kingdom Hearts and Final Fantasy, I would never buy another Sony game system.
Sony is determined to make mistakes whenever possible now, but in the past they had a lot of great games so I thought for sure I'd be getting a PS3. Then the price was announced, which is just ridiculous, and then I realized all the sorts of games I wanted to play were gonna be on/look better on the 360. And that apparently everyone who works for Sony has to be a pretentious asshole who completely looks down upon their customers, which just rubs me the wrong way. Hence, I love Microsoft this time around. It just seems like they actually paid attention to what people wanted last generation and made something to satisfy that.
Maybe it's because they're new to consoles so they aren't snobbish yet. I think Nintendo and Sony were so sure they can't make a mistake that they weren't careful and made a lot of mistakes.
Tom @ Dec 20th 2007 11:19PM
"Sony and Microsoft - get cracking on a FPS/MMORPG that can be played with a beer in one hand [...] that's the only way you'll ever make money on [...] those two waffle irons you call systems"
Hehehe nice! +1 for you, sir!
Theoretically, Activison could publish Blizzard's next MMORPG for the Wii, thus causing demand for the system to skyrocket to epic proportions!
Sidepocket @ Dec 21st 2007 12:44AM
@ Jess Q
"Ahahha, are you serious? I think Microsoft is doing just fine."
True but the next part is were you go to shit.
"I've never paid extra for online features before and didn't think I ever would, but I have paid for a year's worth of Xbox live and I find it's totally worth the $50."
I love how Microsoft have duped the entirety of America in thinking that paying more for online outside of your ISP is good. The only reason why you pay for online is because Microsoft has the access codes to the network and thus to make a quick buck charges you for it. If there was some way to connect it to the internet by itself, nobody would pay for LIVE Gold just like how nobody pays to play COD4 online for the PC.
"I have a Wii and I literally never use it. No games are that entertaining, they look awful on the big tv, the internet connection is shotty, and nothing works very fast or well. It's also frustrating to be accurate with the remote. I've owned every Nintendo console since the NES. This is the first one I regret getting."
WTF with your internet connection being shoddy? That is your connection, it has nothing to do with the Wii. You know why? Because I have a T1 line and a good router and my Wii is lightning fast online. Web sties take barely a second to load, I never had a drop out and online has the exact lag as single player...meaning none.
And what do you mean fast or well? Maybe you have a defective Wii, because accessing everything on my Wii is flawless and smooth. WTF?
Lastly, what do you mean by accurate? Sounds like you either have a bad set up for IR, your system sucks, or ...here is a though...you only buy the crappy programmed Wii games and not the good ones.
"I'm not saying the Wii isn't immensely popular. I just think it's sad that it's basically popular because it's marketed to idiots who can't be bothered with pressing buttons or, god forbid, high definition, in a time where even the cost-cutting SciFi channel is broadcasting in HD now."
Yea and they were broadcasting TV in color since the 60's. You know when everyone in America had color TVs? The late 90's.
Also, thanks for lumping all users into a category. More on that later.
"It's popular because it's cheap and you can like, move around a lot. You know, like monkeys do. It was a nice novelty for the first week. Then no games really came out for it. I moved on."
First off, you either have a very bad taste in games or are just jaded as fuck. I have 10 Wii games, and 6 of them are 3rd party. I fucking love them to death and they are so much fun. In fact, when I am done typing this I will go play them down instead of arguing with a dumb shit like you.
Also, like monkeys do. You are a Human, you are related to fucking monkeys! We all are! We also need to move to survive. You must be one lazy son of a bitch to not be able to rotate your wrist every now and then. How the fuck do you open doors then?
"Gotta open this door...errr! Too hard! That is it, I give up!"
Pathetic.
Not to mention, oh so all Wii owners are monkeys. Right well I played a 360 at my friend's houses and all I seem to see are 14 year old boys or worse....35 year old men acting like 14 year old boys yelling bullshit online with no skill and cry at everything they own. Ommature little fucktards who have no concept of a good game if they saw one, unless it involves a chain saw and tits. This is also coming from someone who owned an X-Box last gen and loved it to pieces, so I know what the fuck I am talking about with the 360's audience.
"And no, I don't particularly play FPS's, so don't bring up that argument. I'm not good at them, anyway, and don't find them to be that fun. I like the sort of stuff that was mostly on the PS2, and it seems to have moved itself over to the 360, so that's where I went. If it wasn't for Kingdom Hearts and Final Fantasy, I would never buy another Sony game system."
So you liked casual sports games, boring racers and generic RPGs. Hmmmm.
"Maybe it's because they're new to consoles so they aren't snobbish yet. I think Nintendo and Sony were so sure they can't make a mistake that they weren't careful and made a lot of mistakes."
Dude...its Microsoft. They were dicks going into this and are still dicks now. Its Microsoft. They are the dick capitol of the world. You see how long it took them to fix broke ones, fuck it took them billions of years to even admit they had a problem. They also hyped many of there games to impossible levels and then they failed...just like Sony and Nintendo has.
Stop with the fucking rose color glasses. Now if you excuse me, I am going to find more of the hidden treasures in Zack & Wiki, one of my 10 Wii games that I own so far. If I had more money, I would be up to 20 of them by now. By the way, pick up that game, if you are not a pussy then you will have fun.
That is, if you are not one...I have doubts about that...
Slaziman (B-B-BRUSHED WITH FAAAAME) @ Dec 21st 2007 8:43AM
Hahaha wow, 6 third party games? Last time I checked only Zack & Wiki and RE4 Wii Edition were worth playing, but I guess my standards are higher than yours. Hey, if you love them "to pieces", then good for you, but most people would gladly disagree. Motion controls (accelerometers, not the IR pointer) are hit&miss even in high-budget titles like Metroid Prime 3, or do you want to tell me that you never had to flick the remote twice to jump with the Morph Ball?
Cyro @ Dec 21st 2007 9:16AM
@Sidepocket:
You sir are a freaking Fan Boy! I just bought a Wii on monday with Mario Galaxy and Metroid Prime 3 and to be honest this was the worst decision ever. After playing SMG for a couple of hours I realized that Miyamoto is a Genious! I mean the guy convinced half the world that his cheap ass port of Mario 64 with a new gimmick was awsome again. The fact that the graphics are even worse than Mario 64 is jaw dropping to say the least. I bet miyamoto came up with this crap like in 2 weeks and took him 2 more weeks to make it. I felt like 10 years had never really passed. I think Miyamoto is a poor old senil man, who's mind is way bye gone.
The Wii is the biggest joke ever made in the gamming industry. It is an insult to all those other developers trying to make awsome realistic games to compete with hollywood and other entertainment forms.
I sold my Wii 3 days after I bought it. This is when I realized this is just a Fad and soon people will see its just the hype.
You can hate me all you want, but the Wii is a POS. The only competition the 360 has is the PS3. This will be very clear in a couple of years.
Ryan P. @ Dec 20th 2007 10:03PM
If you recall nintendo went to all the trouble of relocating their PR firms to San Fran and NYC and at the expense of some of their main people. And then to have to pull all the new adds....I doubt they think thats a good thing for they sake of few headlines.
@ propasps3, nickersoxs, Johnwatts: I'm a gay gaymer,
this isn't your territory, there are plenty of us on here, lick it up. There are also allot of adults on this site. Your gay bashing makes it obvious your dorky snot-rags. Grow up.
Ryan
plyx @ Dec 20th 2007 11:12PM
They're all the same kid. Don't worry about it, I'm sure that IP is gonna get banned.
dbot @ Dec 20th 2007 10:19PM
The Wii shortages are a joke. Do any of you have any experience in production line environments? Demand changes for products all the time, but companies don't have to shut down plants or start up new ones. If you *need* to increase output, you increase the line speed, add additional shifts, explore temporary line solutions, etc...These machines are hardly state of the art and could be cranked out if desired. Nintendo has a long history of making some really brilliant decisions and some really stupid ones. Count this one as the latter.
Whoever said the press is not grilling Nintendo enough about the shortages is right. The big N is getting a free pass because old people like the gimmicky console and the "Sold Out" story plays.
hvnlysoldr @ Dec 20th 2007 11:29PM
From 1 million a month to 1.8 million a month. Yeah they haven't tried every trick besides building factories.
Scooby Doo @ Dec 20th 2007 10:34PM
I think something that always needs to be remembered in these discussions is what those of us that have used Nintendo systems since the NES days know. Nintendo has very stringent standards when it comes to manufacturing. It's not so simple to just add another factory, because Nintendo systems have a certain quality about them.
Yes, I know a few of you have had a system break, but the majority of us still have a working NES and SNES. They have very strict quality standards (look it up if you don't believe me), and I don't want their good name smeared by lowering those standards to meet demand. They don't need an XBOX 360 fiasco.
Yes, it sucks they can't keep up. However I don't think this will hurt them in the long term. Eventually, the supply and demand curves WILL intersect. I expect they will make a determination at around the end of January as to whether this was all a X-mas push or if they need ramp up production. (It's what Reggie REALLY meant when he said they're not sure how to handle things right now.)
Although I do have to laugh from someone that keeps an eye on Joystiq regularly. First it was...the Wii is a gimmick and will die. Then it was, there's not enough quality software to sustain the system. Now you're complaining that they should meet the demand. I have to wonder, what the heck can Nintendo do to make you happy? And more importantly, should Nintendo even CARE about you at this stage?
This feels so much like when they came out with the NES. For some of us, it's nice to see our old friend finally being successful again. We're not bashing other systems, it's just good to see them on top again. Perhaps their disruptive strategy will help our favorite hobby. Just a thought.
hvnlysoldr @ Dec 20th 2007 11:31PM
Wii is the second coming of the NES. Rejoice.
plyx @ Dec 21st 2007 12:15AM
I seriously doubt the Wii will have the staying power of the NES.
lawrence @ Dec 20th 2007 10:52PM
just got my wii today and the guy in game stop said they weren't too many people asking him for wiis although he said that they bought allot ps3 today he still had more wiis in stock than ps3 or 360 but i am very happy with the wii i got only thing i have to open it on x mas cause its a gift someone got me today but on the other hand there not selling out any thing the manager said.
vidGuy @ Dec 20th 2007 11:37PM
Wow, where do you live? Here in the midwest, I have seen a Wii on store shelves yet, and they're in the back room only waiting for a Sunday when at least 50 people line up to buy the 20 Wiis a store has. PS3s, though, are sitting in the aisles of the Best Buy in stacks of 30 or more. People walk buy them and hardly blink.
vidGuy @ Dec 20th 2007 11:39PM
haven't* ;)