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Nintendo shortage Wii-lly hurts company

Posted Dec 03 2007, 08:13 AM by Kim Peterson
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I was shopping at a Best Buy in San Jose yesterday and here's what I found:

Stacks of PlayStation 3 and Xbox 360 consoles. When I asked where the Wiis were, a saleswoman gave a small snort and shook her head. The store was out.

It's a common scenario across the country, and in other parts of the world. A year after its release, the console that many expected would be in third place has become a hit of such proportions that people still line up overnight to buy one. I've had a Wii since its launch, and spent a good chunk of the weekend playing "Super Mario Galaxy." This console definitely holds up over time. [readmore]

Wii mania is in full swing right now, with the system selling for $400 or $500 on eBay. And while it's great to be making the must-have gift this year, Nintendo execs are rightfully bemoaning the missed opportunities the shortage is creating.

Nintendo of America president Reggie Fils-Aime recently said the high demand is keeping the company from its goal of selling the Wii to non-traditional gamers, such as women and 40- and 50-year olds who aren't video game fans.

"They aren't going to sleep outside of a store overnight or visit a retailer five or six times," he said. "It is literally a missed opportunity." 

Fils-Aime was more critical in another interview: "A shortage benefits no one," he said. "We're disappointed. This was all about how we didn't accurately estimate demand. We need to be more bullish about the potential for the Wii." 

So there it is. Nintendo didn't have enough faith in its own system, and is paying the price this holiday. The company is cranking out 1.8 million consoles per month and says it simply can't produce any faster. CEO Satoru Iwata has said that one bottleneck after another keeps popping up on the production line, and that slows everything down.

It's a huge misstep, with Microsoft and Sony happy to provide an alternative for frustrated parents who can't find a Wii. Sony CEO Howard Stringer is practically gloating these days. "It's a little fortuitous that the Wii is running out of hardware," he said recently.

If Nintendo is helping competitors sell consoles, something is seriously out of whack. Fils-Aime is right to be disappointed. The Wii is on a lot of Christmas lists, but this is not a holiday Nintendo should be proud of.

Comments

 

To all those that got "fed up" waiting to get a wii. Be patient, it is well worth the wait. Mario Galaxy is completely awesome.

When will Microsoft and Sony wake up and realize that XBox and PS3 are too niche.  Longevity in the game market starts with the pre-employed crowd.  I have had an XBox 360 since they launched, and the thing is never touched by my kids (or any of the adult household members for that matter).  Yet, we have every iteration of Nintendo device, many in multiples, including multiple game copies.  The kids NEVER leave the house without them.  I'm one of the lucky ones who has a WII and the kids would take that with them if they could as well.  

ok as one of the 50 yr olds who thought this might be a worthwhile game to get, the frustration of trying to find one is a real turn off.  on the bright side for nintendo, i am not in the least interested in ps1 , 2, 3 or the xbox. i like the active aspect that the game provides,  after trying the tennis at a friends house i was sore the next day from the effort required.   i am also not interested in fulfilling some scalpers demand for the exorbitant amount they ask for on e-bay or other similar sites.  so, i keep my eyes open but it's not a priority.

My grandsons wanted a Wii and I was helping my daughter by going to five local stores and/or calling every day for two weeks.  If the stores got any in, a lucky purchaser had to be waiting almost two hours before the store opened to get one of the small supply. (or what we told was a small supply at that time)

Best Buy told me they got their trucks Thursday night, so I was in line early Friday morning. A sales associate opened the door early,  just long enough to say that the Wii's they have "in the back" were all sold....and yet no stores were giving rain checks....  so, do the store clerks grab them up for their friends and family?  My grandsons are "settling" for an X-Box for this Christmas.

I looked at several places to buy a Wii for my kid and decided that i would not be a statistic going from store to store and waiting in lines.  If they want to sell them, they should have them available...so after four stores on various days...I bought my kid the big Playstation 3.  And I am done with Christmas shopping!!!

Has Nintendo not learned from last year when people were getting shot and beaten in lines/parking lots over these games and opportunists were profitting over reselling them for more then twice their value due to the shortage ?

Alos- let's consider the demand in general. I've heard that even  senior centers are using the Wii in their recreational areas as unlike all other sedimentary video game systems- the Wii can be health beneficial  in getting people of all ages active/moving. Thus people are purchasing these year round and even before the holidays they have been impossible to find.

As I refuse to wait in lines overnight or check back to the same stores over and over and also refuse to pay some price-gouger any more money then the system already costs...it appears once again my kids  will be disappointed as there will be no Wii under the tree at Christmas.  Perhaps Nintendo's production and sales analysts need to further their education before continuing on in their positions ?

I am one of those 50 year olds that thought it would be fun, but am not going to stand in line or try to chase one down, or even pay higher price.  It is sad that a company puts out a product that they can't even make available.  Maybe one of the other companies can put out something similar and take the market away.

I for one will agree with this article. I am a 41 year old father of 3. My kids have a PS2, an Xbox 360 and a PS3 that we bought as an alternative to a Blue Ray. My wife and I make a very good income and have pretty much left the gaming to the kids. Being from the Atari generation we can't get the hang of the multi button remotes of most systems. We were at my brothers over Thanksgiving and played his Wii. It was a very fun system with controls that were straightforward and simple to use. Since then we have been looking for a Wii thinking we could put it on the family room TV or on our houseboat and have some good family time instead of the kids playing the other systems in other rooms in the house. It has become so frustrating trying to find one that we are getting to the point that we won't purchase one even if we found one. They will lose my business because they can't prove that they can support the consumers needs.

No big deal.  I'll buy the wii next year for half the price when all the craziness is over.  In the meantime, we'll just spend the money on a ski vacation at Christmas.

I am a 34 yr old female and I would like the Wii for Crhistmas so please do whatever you can so we all can have a Happy Christmas (and yes I am getting it for me). I can understand that it was bad judgement on your part but Sony and Microsoft are excellent companies and should not have doubt themselves. Keep up the good work and PLEASE CATCH UP!

HAVE A HAPPY HOLIDAY

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