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Sparked by a thread on CS.
Many people have complained - some loudly and at length - about how Nintendo is utterly failing and/or abusing its customers with the ongoing Wii shortage. Pundits have declared that Nintendo should, "just start producing more."
Let's break down the facts.
Nintendo was caught completely flat-footed by the popularity of the Wii. It has been an unprecedented success - no console in the history of videogaming has sold more units in as short of a timespan. In its first year of production (just shy of its one-year birthday), it was announced that the Wii had passed the Xbox 360 in total units sold, despite the Xbox 360 having a year's lead. There was simply no way for them to anticipate to popularity of the console, especially considering the failure of the N64, and the lackluster performance of the GameCube.
To put it in a perspective that includes the world outside of video games: There has never been any item, in any category of entertainment, that has been a, "Hot Christmas List item," for two years in a row except the Wii. Let that sink in a bit.
Saying, "Just produce more," is a useless comment. It's impossible for Nintendo to make the factories that they already have running produce more. All factories run at 100% of capacity - doing anything else is lost money.
Saying, "Get more factories," is likewise useless. Most existing factories that are capable of producing solid-state electronics are already owned and operated, many by Nintendo's competitors. To get a slot in a factory and start production is estimated to take four to six months. To hear Nintendo naysayers speak, the Wii bubble will burst before then, so why budget to produce if there's an expectation of a reduced demand?
Nintendo has ramped up production twice, and they're debating a third production increase. At this time, they're producing 1.8 million units per month. In its first 15 months, it sold 20.13 million units. No console has ever performed that strongly.
Nintendo can be excused for not jumping to increase production further. They're wondering the same thing everyone else is - is this a fad that's going to fall off? Is the bubble going to burst? Nintendo went into this generation with the viewpoint that if they had another failure, Nintendo was going to consider abandoning console gaming completely.
So... lay off Nintendo. Just because you can't get a Wii, that doesn't represent some failing of Nintendo. Quite the opposite - it represents a resounding success.
Anyone want a Furby?
Many people have complained - some loudly and at length - about how Nintendo is utterly failing and/or abusing its customers with the ongoing Wii shortage. Pundits have declared that Nintendo should, "just start producing more."
Let's break down the facts.
Nintendo was caught completely flat-footed by the popularity of the Wii. It has been an unprecedented success - no console in the history of videogaming has sold more units in as short of a timespan. In its first year of production (just shy of its one-year birthday), it was announced that the Wii had passed the Xbox 360 in total units sold, despite the Xbox 360 having a year's lead. There was simply no way for them to anticipate to popularity of the console, especially considering the failure of the N64, and the lackluster performance of the GameCube.
To put it in a perspective that includes the world outside of video games: There has never been any item, in any category of entertainment, that has been a, "Hot Christmas List item," for two years in a row except the Wii. Let that sink in a bit.
Saying, "Just produce more," is a useless comment. It's impossible for Nintendo to make the factories that they already have running produce more. All factories run at 100% of capacity - doing anything else is lost money.
Saying, "Get more factories," is likewise useless. Most existing factories that are capable of producing solid-state electronics are already owned and operated, many by Nintendo's competitors. To get a slot in a factory and start production is estimated to take four to six months. To hear Nintendo naysayers speak, the Wii bubble will burst before then, so why budget to produce if there's an expectation of a reduced demand?
Nintendo has ramped up production twice, and they're debating a third production increase. At this time, they're producing 1.8 million units per month. In its first 15 months, it sold 20.13 million units. No console has ever performed that strongly.
Nintendo can be excused for not jumping to increase production further. They're wondering the same thing everyone else is - is this a fad that's going to fall off? Is the bubble going to burst? Nintendo went into this generation with the viewpoint that if they had another failure, Nintendo was going to consider abandoning console gaming completely.
So... lay off Nintendo. Just because you can't get a Wii, that doesn't represent some failing of Nintendo. Quite the opposite - it represents a resounding success.
Anyone want a Furby?
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