Analysts have already pointed out that Nintendo's console sales, despite being record-breaking, could have been stronger had there been more Wii to go around. What makes this situation even stranger is the report from early December that Nintendo actually reduced Wii production going into the holiday. For the astounding amount of success the Wii has brought Nintendo, there appears to be some serious cognitive dissonance between how much the company thinks it should produce of the console and the actual demand.
Nintendo: Replenishing Wii supply will be a 'challenge'
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Analysts have already pointed out that Nintendo's console sales, despite being record-breaking, could have been stronger had there been more Wii to go around. What makes this situation even stranger is the report from early December that Nintendo actually reduced Wii production going into the holiday. For the astounding amount of success the Wii has brought Nintendo, there appears to be some serious cognitive dissonance between how much the company thinks it should produce of the console and the actual demand.
Reader Comments (78)
Posted: Feb 10th 2010 7:47PM (Unverified) said
oh, I got it. by saying "Replenishing Wii supply will be a 'challenge'" will actually provoke Wii sell, so they keep saying the same thing for years.
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Posted: Feb 10th 2010 8:28PM DerickDBrown said
I've always felt like they were facilitating this continued shortage.
Maybe they ran out of white plastic...
Somebody should tell them to load up the black pellets!
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Maybe they ran out of white plastic...
Somebody should tell them to load up the black pellets!
Posted: Feb 11th 2010 1:15PM rahmenxnoodles69 said
Taking 3 1/2 years to replenish supply of something definitely doesn't sound challenging to me..
Microsoft had arguably worse shortages but at least they worked to ship more units quickly after launch and never had to deal with shortages again.
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Microsoft had arguably worse shortages but at least they worked to ship more units quickly after launch and never had to deal with shortages again.
Posted: Feb 10th 2010 10:52PM PN04 said
It's a common strategy. Create an artificial shortage of product to drive up demand, play up the shortage in the press and everyone will take notice thinking that the shortage is due to awesome sales and think they have to get one or be left out. They did it with cabage patch Kids in the 80's and nintendo has been doing it with consoles for years.
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Posted: Feb 10th 2010 7:46PM CaramelZappa said
Does Nintendo even know what they're doing anymore?
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Posted: Feb 10th 2010 8:19PM Mmmmz said
When you tell the factories to scale down manufacturing, yes it is. Factories don't change up on a dime and neither to supply chains. So, by the time they get back to ramped up production the Wii supply would have balanced anyway and it was just a waste of money and time.
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Posted: Feb 10th 2010 8:22PM Stevetrop Man of Mystery said
Well I'm sure Nintendo can tell you what wont be a challenge.
Printing money *Cha-Ching*
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Printing money *Cha-Ching*
Posted: Feb 10th 2010 8:23PM Alan Smithee said
I know that, but Nintendo's been around for a while. They should know how to meet demand. You don't see DS shortages.
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Posted: Feb 10th 2010 8:47PM Johnnynumber5 is powered by cell said
It's very shady to take them at face value on this one. They're the oldest console hardware manufacturer still in the game and they can't straighten out supply four years into the life cycle? I just have a really hard time believing 1. The demand is still that high and/or 2. Nintendo is incompetent. If the demand is real and they can't keep up with it they're doing it so completely wrong.
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Posted: Feb 10th 2010 9:25PM Mr Khan said
Very much so. It's not like they have the ability to just flip a switch to ramp up production, these things take months and months to work their way into the consumer system, and by then, conditions could have changed to the point of making a hasty move meaningless.
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Posted: Feb 11th 2010 12:28AM samfish said
Pretty much what massmass said. It's eye-rollingly embarrassing when people think companies do this stuff on purpose. Having your product be "in demand" doesn't mean anything to a company if they aren't friggin' SELLING IT.
Unlike our fanboy mindsets, Nintendo doesn't see this as some sort of pecker waving PR war. PR doesn't make money and having their product be out of stock for what will amount to nearly an entire quarter DOESN'T look good in your financial reports.
In manufacturing, it's a lot easier to slow production than it is to ramp it back up again. For whatever reason, Nintendo saw fit to slow Wii production at some point around the middle or so of 2009 (probably because the Wii had been slumping for a while). If you slow manufacturing down like that, that means your suppliers slow down, too. It's comparatively easy to do, though... just give the suppliers of the individual parts the order to slow down and not ship as much.
If you want to speed it back up, it's harder to do. Suddenly you have to tell you suppliers that they need more, which means THEY potentially need to add more lines (back) to their production or any number of things.
So it's not that they're "incompetent". They're just EXTREMELY conservative. It keeps biting them in the ass, but they don't have much of a choice in the matter. They don't have anything else to fall back on like Sony and MS do; it's safe to say that they don't want to find themselves in another situation like they did with the Gamecube where they had a huge glut of supply a few years in because they over produced units and then eventually had to sell them at rock bottom prices.
On an unrelated note... WTF did Joystiq do to it's word filters? Apparently we can't say either 'd-ck', 'f-cuk' or both anymore without getting the Congratulations! email notice thing. I've had that happen with other random words lately, too.
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Unlike our fanboy mindsets, Nintendo doesn't see this as some sort of pecker waving PR war. PR doesn't make money and having their product be out of stock for what will amount to nearly an entire quarter DOESN'T look good in your financial reports.
In manufacturing, it's a lot easier to slow production than it is to ramp it back up again. For whatever reason, Nintendo saw fit to slow Wii production at some point around the middle or so of 2009 (probably because the Wii had been slumping for a while). If you slow manufacturing down like that, that means your suppliers slow down, too. It's comparatively easy to do, though... just give the suppliers of the individual parts the order to slow down and not ship as much.
If you want to speed it back up, it's harder to do. Suddenly you have to tell you suppliers that they need more, which means THEY potentially need to add more lines (back) to their production or any number of things.
So it's not that they're "incompetent". They're just EXTREMELY conservative. It keeps biting them in the ass, but they don't have much of a choice in the matter. They don't have anything else to fall back on like Sony and MS do; it's safe to say that they don't want to find themselves in another situation like they did with the Gamecube where they had a huge glut of supply a few years in because they over produced units and then eventually had to sell them at rock bottom prices.
On an unrelated note... WTF did Joystiq do to it's word filters? Apparently we can't say either 'd-ck', 'f-cuk' or both anymore without getting the Congratulations! email notice thing. I've had that happen with other random words lately, too.
Posted: Feb 11th 2010 11:01AM Alan Smithee said
We're talking about Nintendo, and their legendary 'inventory management' techniques.
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Posted: Feb 10th 2010 7:47PM Chilly P slapperonlyblogspotcom said
I was such a huge Nintendo fanboy before the Wii...
At least I've been able to maintain my previously-irrational-but-now-totally-validated hatred of the Playstation brand.
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At least I've been able to maintain my previously-irrational-but-now-totally-validated hatred of the Playstation brand.
Posted: Feb 10th 2010 7:52PM Special Agent Steve said
Yeah, Playstation killed my mom as well.
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Posted: Feb 10th 2010 8:05PM Funkmaster General said
Playstation killed my father and raped my mother.
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Posted: Feb 10th 2010 8:08PM sonicspike41 said
So then what does that make you now? A 360 gamer, or a Wii gamer, or what?
Also, spread the love a little. I've had nothing but good times with my PS3... well except for that one night she had to "work late", and didn't come home until 2am in the morning. Not to mention the lipstick on the inside of her collar!
Reply
Also, spread the love a little. I've had nothing but good times with my PS3... well except for that one night she had to "work late", and didn't come home until 2am in the morning. Not to mention the lipstick on the inside of her collar!
Posted: Feb 10th 2010 8:21PM Mmmmz said
The PS3 may not have the greatest exclusives, no one does this gen really, except Nintendo but that's all they have.
The PS1 and PS2 helped boost the gaming industry and mature it as well. Before then they were just kids toys. So, you have to give them credit where it's due, not to mention the best games ever came out on the PS1 and PS2...
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The PS1 and PS2 helped boost the gaming industry and mature it as well. Before then they were just kids toys. So, you have to give them credit where it's due, not to mention the best games ever came out on the PS1 and PS2...
Posted: Feb 10th 2010 8:44PM Johnnynumber5 is powered by cell said
"The PS3 may not have the greatest exclusives, no one does this gen really, except Nintendo but that's all they have."
You really think Nintendo has the "greatest" exclusives this generation? Thats ... interesting.
@Foetoid
Games-wise this is the worst Nintendo console I've ever owned. I never had a virtual boy but I've had all the other ones, loved them all but the Wii just hasn't done it for me like the 'Cube, 64 or SNES.
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You really think Nintendo has the "greatest" exclusives this generation? Thats ... interesting.
@Foetoid
Games-wise this is the worst Nintendo console I've ever owned. I never had a virtual boy but I've had all the other ones, loved them all but the Wii just hasn't done it for me like the 'Cube, 64 or SNES.
Posted: Feb 11th 2010 11:51AM TwEE said
"Games-wise this is the worst Nintendo console I've ever owned. I never had a virtual boy but I've had all the other ones, loved them all"
Really? You had other Nintendo consoles and loved them all? I thought it wasn't until Little Big planet came out with its "whimsical childlike game play" that you could almost maybe relate to people who like Nintendo games.
If you always loved Nintendo's consoles why did it take you till 2008 and through a Sony lens to understand why people like Nintendo consoles? Did you forget about all the other Nintendo consoles you've owned and LOVED? I'm confused.
Anyway as somebody who loved Old school Nintendo I'm sure your pretty pleased with NSMB Wii, I am too!
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Really? You had other Nintendo consoles and loved them all? I thought it wasn't until Little Big planet came out with its "whimsical childlike game play" that you could almost maybe relate to people who like Nintendo games.
If you always loved Nintendo's consoles why did it take you till 2008 and through a Sony lens to understand why people like Nintendo consoles? Did you forget about all the other Nintendo consoles you've owned and LOVED? I'm confused.
Anyway as somebody who loved Old school Nintendo I'm sure your pretty pleased with NSMB Wii, I am too!
Posted: Feb 11th 2010 11:56AM Chilly P slapperonlyblogspotcom said
Note to self: don't partake in console debates
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Posted: Feb 10th 2010 7:47PM Killface was here said
Nintend what happened to you? You used to be cool.
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Posted: Feb 10th 2010 7:49PM Alan Smithee said
We still cool! We still cool! You pay later!
(did I do that right?)
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(did I do that right?)
Posted: Feb 10th 2010 7:54PM Killface was here said
Not really. Though I am fully aware of the Simpsons reference this is not a mimicking. We don't owe Nintendo money Brad, that's just silly. But the question still remains, "what happened to you Nintendo?"
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Posted: Feb 10th 2010 8:26PM Alan Smithee said
Stole their lunch money? They gave Nintendo the biggest asswhooping in history. Microsoft and Sega too.
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Posted: Feb 10th 2010 7:51PM (Unverified) said
I'm completely over Nintendo's excuses now. From constant peripheral pushes, no love for 3rd party's, and now a shortage? This is either a marketing ploy, or they employ the worst market analysts ever.
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Posted: Feb 10th 2010 7:51PM Ezio Auditore da Firenze said
I'm calling bullsnot.
You either make enough, or you don't. Stop dicking people around.
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You either make enough, or you don't. Stop dicking people around.
Posted: Feb 10th 2010 7:58PM Chilly P slapperonlyblogspotcom said
Well, you never know when a spontaneous Brawl tourney will break out. Plus, I bought all those damn Virtual Console games...can't sell those back.
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Posted: Feb 10th 2010 8:00PM (Unverified) said
Simple: most of the time, they're trolling. They probably never owned a Wii in the first place.
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Posted: Feb 10th 2010 8:34PM Johnnynumber5 is powered by cell said
It's hard for me to justify buying a good Wii game when there is a good PS3 game. I imagine if someone has a 360 & Wii they might feel similarly.
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Posted: Feb 10th 2010 7:55PM moominsean said
i see wiis all the time at frys and walmart... sound like a typical marketing ploy to make you think you better grab one when you see it because they are so rare.
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Posted: Feb 10th 2010 8:26PM (Unverified) said
I was thinking the shortage may be due to production/development of an upscaling Wii with fancy HD's. Ive been holding off buying one waiting for that to happen or for it to hit the $150.00 mark.
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Posted: Feb 11th 2010 11:37AM Korova Pamplona said
Most americans dont live in places with easily available dead cats.
or Wiis, for that matter.
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or Wiis, for that matter.
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