Wii shortages leave $1.3B on the table this holiday season

If you read our comments or those from any gamer forum you're bound to stumble upon this flaming Wii, discussion nugget:

WiiGuy: The Wii rocks, Nintendo can't produce enough!
H8r: They're artificially limiting supply to drive up demand
WiiGuy: No they're not
H8r: You're a fanboi
WiiGuy: No you are!

Last month, Reg himself lamented, "A shortage benefits no one, we're disappointed. This was all about how we didn't accurately estimate demand." Indeed, Reggie. According to analysts, Nintendo is leaving about $1.3 billion on the table during this holiday season alone. A figure which doesn't include additional losses from game sales. Of course, this comes as a delight to Microsoft and Sony who are there to pick up the slack.

[Via I4U]

[Ryan @ Dec 14th 2007 5:00AM]

The Wii rocks, Nintendo can't produce enough!

[Mark @ Dec 14th 2007 5:09AM]

They're artificially limiting supply to drive up demand

[Chebwa @ Dec 14th 2007 5:20AM]

No they're not

[Jonathan @ Dec 14th 2007 5:29AM]

You're a fanboi!

[Rynth @ Dec 14th 2007 5:34AM]

No, you are.

[Fizzl @ Dec 14th 2007 7:55AM]

You're a towel!

[Dale @ Dec 14th 2007 10:14AM]

I'm a banana!

[Zak @ Dec 14th 2007 11:37AM]

My spoon is too big!

[ekwmin @ Dec 14th 2007 12:11PM]

LMAO! you're funny. I'm not directing this at you because I know you're being sarcastic, but for everyone else who really thinks that Nintendo is doing this on purpose doesn't understand the gaming industry. Besides all the money they are not making by the shortage, it is in Nintendo's best interest to get as many consoles in people's home because that will dictate how many games they can sell. As more people own their console, the more games they can sell, the more attractive it is for developers and license owners. That's the reason why the other guys are willing to sell their console at a loss. This totally caught Nintendo by surprise, and no it is not that easy to ramp up production at the 12th hour (someone mentions supply constraints). Being a Japanese company they're less likely to sacrifice quality so that they can get a few more systems out. If anything like the Xbox 360 fiasco was to happen to the Wii, they'll probably go all Seppuku on themselves. Ok, maybe that was a bit too much.

[Mark @ Dec 14th 2007 5:12AM]

btw, just so people know, I'm not against the wii, I have one and love it, just wanted to further the joke of Ryan there. In all honesty I think it's a stupid argument that they're witholding stock to drive up demand. It just doesn't make sense when you look at how many they're selling. It honestly seems like no console could keep up with that kind of demand, especially since it's been at that level since it came out over a year ago.

[James @ Dec 14th 2007 8:34AM]

Yeah, they can't make anywhere near enough to meet demand. That's why they keep running a massive global advertising effort on TV, in print, on the net, in cinemas, on billboards etc etc.

Smell the coffee people.

[david @ Dec 14th 2007 9:29AM]

I think I read here that they are cutting back significantly on their advertising because of the shortage. I haven't seen more than one ad in weeks.

[pk386 @ Dec 14th 2007 7:04PM]

I find it funny that no one has thought,
Maybe Nintendo is under a contract with the current manufacturer and it would cost them too much to get out of that contract.

The manufacture may have the manufacturing rights for 2 or 3 years or something with X units/Month that they have to produce once they meet X/month they no longer have to produce any more.

My 2 cents

[Mark @ Dec 14th 2007 7:29PM]

@James: yes, because advertising a product means that they're witholding stock. Obviously they want to still be able to sell wiis and for people to know what they are and want them. It's a business and businesses advertise.

[Andrew @ Dec 14th 2007 5:13AM]

Early problems with supply, and the problems at Christmas with a popular device, are understandable; but the continued shortage with no real explanation indicates to me that there are problems at Nintendo. It may just be that they can't find factories in China which are up to snuff, but there again, it may indicate something more fundamentally wrong.

[BigD145 @ Dec 14th 2007 5:17AM]

The Wii sells itself. There is no need to force demand by limiting supply.

How much money is Nintendo saving by not advertising this holiday season? What are the rates for advertising on a big network during the holiday season vs any other season?

[chris @ Dec 14th 2007 6:15AM]

They ARE advertising. That's what angers so many of the people I know wanting to buy one. Kinda like T-Mobile ads on TV here... there is NO T-Mobile service in this area.
I probably see 1-2 Wii TV ads a day over the last month. They are pretty good ads too. Fun. Not aggressive in your face like the PS3 ads - which is likely doing well in convincing families that it IS (as it is) an excellent family console.
I got lucky when stumbling into mine around a year ago at a Best Buy.

[Ike Skelton @ Dec 14th 2007 8:54AM]

Yeah, Nintendo is definitely advertising. They've got those two little Japanese guys who drive around in some super-compact car going around saying "wii would like to play" then they show people enjoying the wii with friends and having an all around good time.

[NG @ Dec 14th 2007 5:35AM]

I rather see limited supply for the quality control.

[astute @ Dec 14th 2007 5:35AM]

Here in The Netherlands, every store has big piles of Wii's standing doing nothing. So I don't know if the PAL version is being supplied more, or that there is just less demand...

[Jonathan @ Dec 14th 2007 5:36AM]

"Shortage" is a relative term. The Wii has still managed to become the fastest selling console ever.

[Kragmose @ Dec 14th 2007 6:34AM]

That's the amazing part, that they've sold so many and still don't have enough

[Chris @ Dec 14th 2007 5:50AM]

Being an owner of a games shop I know only too well the unbeleivable demand for the Wii. Here in Ireland we get constant demands for them and there simply isn't enough. And the DS is the same. If we're lucky we get 1 delivery of each a week which will usually contain 100 units of each and they're all gone within 3 hours of going on sale...
Whats worse is Nintendo will not allow us to put up out of stock signs or remove or in store advertising, which means we have to deal with a constant bombardment of abuse from customers expecting us to have them.

[Herman Manfred @ Dec 14th 2007 6:21AM]

If I were a Doubting Thomas I'd doubt that Nintendo had this shortage due to being UNABLE to produce enough, but instead due to a decision to ramp down production so the NEXT version could be ramped up, then either having that new version delayed and/or having demand for the current version be so high they UNDID they're decision - too late.

If I were a Doubting Thomas...

[Nicholas FitzRoy-Dale @ Dec 14th 2007 6:34AM]

Good thing you're a Herman Manfred.

[Steve Cook @ Dec 14th 2007 6:32AM]

Plenty of Wiis here in Sweden as well. Bwahahaha!

Actually I've been wondering if the Swedish Wiis are compatible with the games sold in the UK and whether it's worth trying to eBay them.

[Addex @ Dec 14th 2007 7:41AM]

It's true! They even had a short term 20% off sale, here in Jönköping!

[NHAnimator @ Dec 14th 2007 8:01AM]

Swedish Wii's can only play Swedish games. Bwahahaha!

[Steve Cook @ Dec 14th 2007 8:07AM]

Those fiendish Nintendo gremlins have anticipated my evil plan. I'll have to go back to selling empty boxes instead!

[Scooter @ Dec 14th 2007 9:30AM]

@NHAnimator have you actually checked this?
To my knowledge there are only three systems: NTSC-J, NTSC-USA and PAL. This would mean that only thing holding back grey imports is the power supply (I haven't checked mine to see if it is only 220-240v. Most PAL countries are on the same voltage anyway.
There are enough in Germany though they do dry up on occasion.

This is also an issue for people (like me) with fried GPUs needing replacement machines (though you can't return a modded Wii). I reckon the modding capacity is helping drive sales.

[Bobbybobbob @ Dec 14th 2007 7:08AM]

I just sold my Wii for more than I payed for it!Had it about 3 months, not really for me. It's high times if you've had your conscience removed on the NHS..Milk those desperate parent's keen to please little whoever for all they're worth I say!
Made enough to buy a PS3. Which is what i wanted in the first place. Appy days!

[Boss @ Dec 14th 2007 7:30AM]

Well what can i say. Most of the Wii's sold end up on ebay for twice what they are worth and it seems the only reason people are buying them up is because they think it's the must have gift for christmas and they must have one because of the shortage. Shortage must mean that it's the number one gift to have!!!
Far from the truth. The hype for the console for me and many others i know who have owned it has been short lived. It was great fun for the first month but after that it sat on the shelf and didnt do anything. Done as some others did and sold it and made a lot of money and bought a PS3. There's no comparision between the 2. The PS3 just blows it away in every aspect. Just shame GT5 aint out yet.

If i was you people i would wait until after christmas to buy this console. It will def drop down to normal prices after nintendo start releaseing the amounts they should do. If Microsoft can do it and so can Sony then theres no reason as to why nintendo cant. People are paying more money for a Wii than you can buy a XB360 or PS3 for?????

[Herman Manfred @ Dec 14th 2007 7:41AM]

The appeal of the WII to THIS reader is the user interface that allows (demands?) the player(s) to get off their butts and MOVE.

However, I decided to NOT (try to) get a WII for my kid (and myself? No no no!) because (1) I think Nintendo has its replacement ready to roll and (2) I think the competition has THEIR MOVE-demanding interfaces ready to roll.

[mnemo @ Dec 14th 2007 7:32AM]

I don't know what the fuss is about. Just like the Netherlands mentioned above, stores in Germany also have stacks of Wiis. See here: http://img528.imageshack.us/img528/5876/wiishortageiz8.jpg

[tiuk @ Dec 14th 2007 7:52AM]

They couldn't estimate this demand? The past year of being sold out wasn't a clue?

[Scooter @ Dec 14th 2007 9:32AM]

Nintendo also continues to be short of DS Lites in some locations, including Japan, years after they were introduced. Naturally, they never get discounted.

[Michael @ Dec 14th 2007 9:33AM]

Yeah that's exactly what I was thinking. It's like everybody just forgot. I can't believe they are still so hard to find a year later. I kinda hope by next Christmas Nintendo makes a whole lot of them and not a single person buys one.

[DirtyC @ Dec 14th 2007 7:52AM]

I think they are limiting supplies to areas that are major players in terms of sales and market share so ppl will constantly buy them up asap everytime.
Im from the uk, but also reside in spain from time to time, and i can happily walk into any store and pick up 10 wii's for myself if i so wanted, they are just stocking up there. I know its the same in Greece as a family member reported the same news. I read here there are stocks just lying around in stores in Germany and many many other european countries, so why are there non in stock ANYWHERE in the UK????? they are all PAL systems after all.....

[Geir E @ Dec 14th 2007 10:57AM]

I was in a typical store yesterday. plenty of Wiis to go around. Enough for everybody here who wanted i would guess.

[apw76006 @ Dec 14th 2007 7:59AM]

The lack availability of the Wii(minus the bundles which I am not interested in)has left a bad taste in my mouth and I am no longer interested Mario. Upon further study of this bad taste in my mouth, it kind of taste like I a plate of Blu-ray - HD DVD - DRM poo salad. It's almost 2008 and we are the second most advanced planet that I know of and yet we have a wee Wii supply.

[Ruben @ Dec 14th 2007 9:01AM]

Those assholes in Jupiter always like to show off their prowess. We will catch up once all of us can fly at will.

[Josef @ Dec 14th 2007 10:37AM]

I hate Jupiter...

[Encoding @ Dec 14th 2007 12:01PM]

I know you are only hating on Mario because you have not yet experienced the joy that is Super Mario Galaxies.

It's so good.

[James @ Dec 14th 2007 8:37AM]

Sony never had a problem making 20 million PS2's every year for half a decade......

[TrentD @ Dec 14th 2007 9:16AM]

Yes they did. At launch, they basically missed Christmas due to component shortages.

[Silverfrog @ Dec 14th 2007 8:53AM]

With the demand the way it is, Nintendo would be a fool to artificially create a shortage. No, this is not artificial. PS2 had the same problem when it was first released...they couldn't make enough of them to meet demand for the first 9-12 months. I think pricing is a big reason why the demand is still so huge for the Wii. They undercut their competitors by $50-100.

[Viney @ Dec 14th 2007 10:57AM]

Right. And pricing isn't the only thing. The Wii's target market is much broader than the PS2's was during it's first few years of existence. The PS2 hardly had the casual or non-hardcore gamers lining up to buy one in the same way that the Wii currently is.

[Ike Skelton @ Dec 14th 2007 8:53AM]

I was all set to buy one last may or so, and I went to the store and they were all out so I said f''k it. I have no desire to ever purchase a wii anymore. Nintendo should have gotten their sh't together and supplied enough wii's to meet the demand.

[Bing @ Dec 14th 2007 8:57AM]

Some of you guys are less intelligent than you act.

Why would Nintendo NOT produce more Wiis if they could? Obviously people are still quite happy to pay $250 (USD) for them, while the production costs just keep falling. Even if they're focusing on a follow-up (which doesn't make sense, since the Wii is only 13 months old and still selling strong), why would they not try to produce more Wiis until then?

There are only two arguements for why they would intentionally produce less: (1) they're focusing on a Wii2 or (2) they want publicity of higher demand.

I already addressed (1) and publicity is only good when it brings in more profit, which it can't unless there are enough units to supply demand. Besides, Nintendo would get just as much publicity if it DID sell enough, since it would SHATTER all kinds of records. So (2) doesn't make sense either.

I think this is just as simple as it seems: Nintendo can't make enough.

[Frank @ Dec 14th 2007 9:26AM]

The longer Nintendo waits to make more Wiis, the cheaper it is to produce them. The cost of making a Wii at launch was $150, its probably $100 by now. Let's just say money for nothing.... chicks for free.