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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

 

I've looked everywhere for a wii even calling relatives in ks and washington to try and get me one. And yes i'm a woman who is normally not a gamer but there's something about the wii but not this christmas.

My 17 year old son and I have been staring at Wiis' in stores during the summer and I put off buying one. Now I had to go to an overseas sight to order a US type system. I  am not about to stand in the cold Chicagoland cold at 7am to buy a system, or call  20 stores every day to see if they have 1 game system or none. When I told a friend about the site, she found the price had been increased $60!!  And the company needs to stop showing the commercial it's making people angry. This is worse than the cabbage patch doll run in the early 80s'.

I am 57. Heard that WI was fun. Can't get one anywhere. Bought a XBOX 3 instead.

I can't believe that Nintendo didn't see this coming.  I searched and searched for months trying to buy my husband a Wii, and to no avail.  Most places only get a select amount in on a certain day of the month, and if you don't stand in line, you just aren't going to get on.  I finally went online to a gaming store web site and ended up buying one of the Wii packages, paying a little more then I expected, but getting more items than I would have thought to get if I would have bought it at a store.  The only bad thing about the Wii was that it broke three days after we bought it, but Nintendo made it easy for us to have it replaced/repaired.  I honestly think it's a shame that Nintendo is still going through the "supply and demand" issue, still, and can't help but wonder if it is a marketing ploy.  

As a 60-year old, the first I heard of a WII was at work.  What really made me look for it was the TV commerical.  I have no idea what to look for from Sony or Microsoft.  I didn't know there was any kind of alternative. Sony CEO Howard Stringer should stop gloating and get the word out to non-techy people like me there is something else to purchase.

Very true.  This is one mom who doesn't have time to stay in line overnight.  My kids would love a wii under the tree, but my dollars will be going elsewhere this year.  And, of course, I won't be buying any wii games either.

We were recently travelling in Colombia. There are many to choose from there ranging from 500-1000 USD.

I hope that the Wii producers will smarten up and have the product available before play station and xbox take avantage

I am 52 years old and I bought WII as a gift for my son last year, his request and he is on top of all the latest hot electronics. I never would have spent more than two seconds looking at a game if it weren't in my own house but I am so impressed!  I can't wait now for the Wii Fit console (as I have lost motivation to get back into the gym but playing at getting fit in my own home is something I can see myself doing, at least to get started).  Anyway, only wish I'd bought more Wii's so I could be selling them on eBay ;-) too!  It is a totally cool system.

I don't think there is a shortage of any of these games.  I am the fifty year old target group that Nintendo says it wants to focus on.  The problem is these so called shortages at Christmas EVERY year must be in their plans.  One could understand it happening one year but not every single year that comes around.  After six years of shopping for items that end up being no where to be found, I am disappointed in Nintendo.  I thought they were different but I guess not.  I think they are just hiding their stacks a little better than what the guys in picture are.   I will probably end up spending my $500 on something more practical for my child.

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