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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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By T3raYon on 10/1/2007 6:21:53 PM , Rating: 0
I had to do some digging. I'm not complete but a few points to mention.

Your math is right saying that Nintendo would need to deal with a significant increase in production. Question is do they really do that?

I checked their annual reports and it looks like to me (subject to some verification) that in the past years their capacity was to manufacture around 11million units worldwide. (I totaled the Wii + Game Boy Advance and GameCube since the later two got scaled down in production as the Wii emerged)
This 11million does not seem to be enough now. Apr-June 2007 alone was 4 million alone that brings the figure up to the 16million by the end of the year not even calculating with the holiday season extra demand. So your 44% growth looks like checking out.
What I also see at the same time though is, that the Nintendo DS managed to DOUBLE it's output (11million in 2006, 23million in 2007) so in terms of production flexibilities for me the possibilities are a bit better than 40%.
It appears to be that Nintendo was shifting resources to the DS side as probably couldn't afford an expansion in both areas?
All in all scaling up production is no miracle and DS is the proof it's possible...

Furthermore Nintendo never commented that it has supply problems from the parts manufacturers.

About the demand: I do not think not meeting the demand is leading to INCREASING the price (although in Canada despite the favorable exchange rate developments the Wii went UP by $10 (from $279 to $289)), but more KEEPING the price and not reducing it!

I commented on the theoretical "lost" sales somewhere else. (LOST vs. DELAYED)

"I modded down, down, down, and the flames went higher." -- Sven Olsen

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