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Nintendo says that not everyone will be able to find a Wii

Even a year after launch, the Nintendo Wii still remains a hot item that rarely ever stays in retail stock –and comments from Nintendo of America president Reggie Fils-Aime indicate that demand will once again outstrip supply this holiday season.

“We have been sold out worldwide since we launched,” said Fils-Aime to the Mercury News. “Every time we put more into the marketplace, we sell more, which says that we are not even close to understanding where the threshold is between supply and demand.”

Fils-Aime adds that Nintendo is doing everything it can to meet the demand for Wii, and that “The issue is not a lack of production.”

“The issue is we went in with a curve that was aggressive, but the demand has been substantially more than that. And the ability to ramp up production and to sustain it is not a switch that you flick on. We're working very hard to make sure that consumers are satisfied this holiday, but I can't guarantee that we're going to meet demand. As a matter of fact, I can tell you on the record we won't,” said Fils-Aime.

In a previous story, the Nintendo president said that holiday supplies of the Wii will be “substantially more than the launch, substantially more than has been seen to date ... given the level of demand and given the fact that the more we put in, the more we sell, it is still going to be difficult to get your hands on the Wii.” 

Since launch, the Wii has topped the sales charts. NPD sales data from August showed the Wii selling 403,600 units, while the Xbox 360 sold 276,000 and the PS3 130,600. The Wii also became the fastest selling console in history in the UK, and according to several sources, Nintendo’s latest machine is now the worldwide leader for the generation.

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Reminds me of AMD
By clovell on 10/1/2007 2:17:07 PM , Rating: -1
Just a bit - a good, competitive product stifled by overwhelming demand and an inability to keep up with it.

To a degree, it makes sense. Nintendo does just video games - they can't afford to take on losses like Sony or Microsoft. It's understandable that they wouldn't want to over-invest in production capacity prematurely.

RE: Reminds me of AMD
By mdogs444 on 10/1/2007 2:48:51 PM , Rating: 2
a good, competitive product stifled by overwhelming demand and an inability to keep up with it.

A little bit different.

Nintendo cannot keep up with the consumer demand for their product.

AMD cannot keep up wiht the product demand from its consumers.

RE: Reminds me of AMD
By clovell on 10/1/2007 3:00:06 PM , Rating: 2
Sorry, I guess that didn't make much sense, but I was speaking from more of a historical perspective (AMD's past manufacturing woes) rather than a 'at this moment' perspective.

RE: Reminds me of AMD
By augiem on 10/1/2007 2:49:10 PM , Rating: 2
Well, so far microsoft has yet to make a profit on it's Xbox division which has been around since Nov 2001 (original Xbox release date). Nintendo's business model has always been to make profit on the hardware and the software. MS is still betting their strategy will pay off in the future, whereas N has been making $$$ every year a couple of decades.

RE: Reminds me of AMD
By brownzilla786 on 10/1/2007 2:49:55 PM , Rating: 3
Nintendo surpassed Sony in company value, so yes they can take the loss but choose not to. It seems their strategy has worked.

RE: Reminds me of AMD
By clovell on 10/1/2007 2:57:25 PM , Rating: 2
Oh I wasn't passing any kind of judgement on their strategy - it obviously works very well. Still the fact remains they can't take the billions in losses like Microsoft or Sony and that has impacted their business strategy. But, they've handled it remarkably well.

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