http://kotaku.com/gaming/midway/midway-having-some-wii-problems-318039.php

"The upcoming holidays and impressive Wii sales have "put a pretty big strain on Nintendo's production capacity" and may result in some older Midway titles being understocked. Look, as long as we get our copies of Cruis'n in the US of A, we're cool. Otherwise, I'm heading to the Nintendo factory myself and stamping out a disc for my own use."

 I seriously thought in this day and age, nintendo would have ramped up their capacity, or atleast outsourced a part of it to meet demand.

This was more like an excuse from Midway to explain dropping revenues. Why wouldn't have any other 3rd party mentioned this. Midway doesn't have any high selling Wii games. If this was really the case Capcom should have made some complaints.

Wth, if I can't get a copy of Midway's Cruis'n then I just wont get a Wii at all.

BengaBenga - Unless Capcom was a higher priority to Midway for Nintendo.

If (and I emphasise the 'if) Nintendo is having problems manufacturing the Wii disks, I'd imagine they'd rather ration them out to developers who made more, and higher quality, games (Okami + Resident Evil + Zack & Wiki >>>> Happy Feet + Ant Bully + Blitz).

The problem of being too successful.

IF nintendo has a manufacturing problem (which I kinda doubt because DVD production is so widespread that they could easily get someone else to do it/borrow someone elses stamping machine lol), then Nintendo will choose to only print the good games. Sorry midway.

@ z64 : exactly, I dont see why Nintendo cannot ramp up its production of wii discs in time for its holiday season. heck they could just rent/borrow a few dvd pressing machines.
lets hope nintendo's stubborn cartridge rationing during the days of NES and SNES days does not rear its ugly head again.
Unlike the Wii, Nintendo can indeed do something to correct this shortage.

Most likely this is what has happened:

Nintendo was offering cheap disk and packaging to third parties while their facilities weren't being overly used. Now that Nintendo is ramping up games like Mario Galaxy, Wii Sports, Wii fit, Smash Bros etc. Nintendo has upped the cost to cover extra expenses such as building another production line or borrowing the use of one. Midway most likely did not want to pay the higher fee's so they started complaining about Nintendo's production issue's.

Nintendo has a highly efficient facility. They are very automated, Nintendo had issue's last year getting enough copies of Zelda out the door to retailers and some 3rd party software was delayed to make enough copies of Zelda. These facilities would offer extremely cheap production costs to third parties. If you're used to paying 2$ per disk + package and Nintendo ups that cost to 4$, you are going to be a little miffed, especially if your software doesn't justify the printing costs such as these crappy Midway games.