3 reasons for nintendo to be worried

[Paul_Warren]

"2. Shortages of the Wii didn't help the competitors much in the past, so with the production of Wii now being up, it won't change anything at all now. Besides, this time around, I think Nintendo built a big stack of Wii for the holidays. Can they sell 3 millions Wii in a month? We'll see, but clearly, that's not sth that worries Nintendo."

The reason that the shortages didn't help Nintendo's competitors in the past was because the non gamers that were purchasing the Wii and made up the majority of people that bought games like Wii Fit and Wii Sports really didn't know what they were buying. At most they probably knew it was a new game console and not being people whom had spent much time really researching the market they didn't know or care about one console's capabilities from another. They probably assumed that all three systems had the same capabilities as they were all game machines to them. However as they become smarter about games and develop a more discerning palate for them or as more people finally have a chance to see the Wii's capabilities for themselves rather than just having their interest in the Wii stoked by word of mouth, fewer people will be willing to buy the Wii. As better games become available for the PS3, for example, you will see fewer people buying the Wii.

The Wii is certainly going to have a much more difficult time reaching 50 million consoles sold than it did reaching the 30 million consoles sold point. Of course another reason is that the Wii just doesn't have that strong of an upcoming game library.

Note: Wii sales like those for any other consoles will spike with price cuts of course, but it is not going to live up to the lofty expectations that the Nintendo faithful have for it.