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Forums - Sales Discussion - Why Nintendo has been "slow" to increase production.

__XBrawlX__ on 27 January 2008

*Haven't read all of the posts*
Nintendo is too conservative to up production by large amounts. However I can see them upping production around april to just above 2 million.



 

 

 

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Punisher on 27 January 2008

It is pretty obvious that Nintendo doesn't want to be left with surplus Wii's in warehouses and they might be a little conservative in their increases, because they got burned pretty bad with GameCube.



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Entroper on 28 January 2008

Apparently XBrawlX and Punisher haven't read the OP.



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Oyvoyvoyv on 28 January 2008

Just a quick question, sorry for off-topic. What does OP mean?



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Entroper on 28 January 2008

Original post. The first post of the thread.



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Branko2166 on 28 January 2008

So could someone please enlighten me on the current availability of the wii? If Nintendo has upped its production as indicated here and is selling out then shouldn't the weekly sales numbers be in the 400K range?? Unless the wii picks up sales in the next week or two then its obviously not a case of supply shortages unless Nintendo is purposely keeping it that way.
I don't mean to sound negative but I would appreciate it if someone could provide some info about this.



 

 

TWRoO on 28 January 2008

Well many people think Nintendo started shipping Wiis by plane to get to America/Europe before Christmas, those Wiis would normally have been shipped by boat and got into stores in early-mid January.

I think ioi is expecting American Wii numbers to rise for this week, and European numbers have already risen.



Ninjabread Man on 28 January 2008
Stever89 said:

I'd also like to point out, which has been said multiple times in various threads, that increasing production is not as easy as flipping a switch. And much harder than flipping a REALLY big switch. It takes time, they have to make sure enough parts (CPU, GPU, etc) are made, and somethings that means those who make those parts have to increase production, which might take some time (if not more). They have to have the extra plants, and if needed, have to buy plants, and I doubt there are many empty manufacturing plants out there waiting to be used. Those plants have to be set up, at any rate. Contracts have to be made. It's a very time consuming, and costly, process, which one doesn't simply run into blind folded.

This.
Nintendo have to liase with ATI and IBM as they manufacture the GPU and CPU respectively.
On factories, quite a lot of them are specialised (for instances sweets, clothes) and so perhaps Nintendo has to build them themselves due to this.
At 1.8/month lets have a look at how much Nintendo will be making over the coming years taking 20m as the amount sold by year end 2007.

 

 Year End

 Amount Produced

 Lifetime to Date Produced

 2008

 21.6

41.6m

 2009

 21.6

63.2m

 2010

 21.6

84.8m

 2011

 21.6

106.4m

 2012

 21.6

128.0m

That's a lot of units, but the true problem is whether or not demand will continue to outstrip supply, and how long it will do so. Should Nintendo up production now in order to take advantage of the crazy demand - building new factories and having to shut them down if demand dives (a costly procedure)? Will demand remain at whatever incredible rate it is at the moment, or even increase, making the numbers in the table above look conservative?

There are so many factors Nintendo need to take into consideration, and they will be deliberating them right now.



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gebx on 28 January 2008
TWRoO said:
Well many people think Nintendo started shipping Wiis by plane to get to America/Europe before Christmas, those Wiis would normally have been shipped by boat and got into stores in early-mid January.

I think ioi is expecting American Wii numbers to rise for this week, and European numbers have already risen.

Oh... that explains why Wii's dissappeared for the first 2-3 weeks of January.

I couldn't understand why suddenly Wii shipments had stopped.



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Branko2166 on 28 January 2008

Well I guess in that case it will be interesting to see how the numbers hold up for the next couple of weeks because by then the new shipments will definitely be in.