Nitendo Increasing Wii production, again.

[DarkNight_DS]

Biggerboat said:

Caey said:
Hmmz, it seems to me that someone who buys a Wii in mid-summer will likely consider to buy it in november if it was out of stock.
Around christmas many people buy consoles, not for themselves, but for other people. So if those people don't find a Wii they'll buy another gift.

So sales lost by end-consumers will end up in delayed sales, sales lost as presents are lost forever. So Nintendo better takes care every consumer has finds a Wii in december, certainly because it will help broadening the consumer base. Just imagine adults buying a Wii for their parents. They would not have bought it themselves, they'll probably like it, and tell their surroundings about how great the system is witch will lead into those direct consumer sales.

I have thought of this angle before, people jumping to other systems at an increased rate around buying season thus making it feesible for N to stockpile but then some people dismiss this strategy as bad business. I'm no business graduate so is there anybody who knows if this is a known, legitamite tactic?

 Well the toy market (including video games) have used this method since toys first started being made in large quantities.  So yes, Nintendo knows it had better stock pile some consoles for Christmas...  but I think Nintendo is still in shock that their console is still sold out.  They couldn't have expected this to happen.  Their sales estimates for their investors shows way lower numbers then we should expect to see.  I expect Nintendo will revise their numbers come end of August or September and we will find out a little more as to Nintendo's Christmas plans...  I hope that when they said they increased production (and Miyamoto talked about this at E3) that they have stock piled all of those consoles...  I figure the Wii could sell somewhere around 6 million consoles during November and December (3 million a month).  Demand should tripple for the hollidays...  right?