Groucho said:
Seattle is supposed to be one of the "high tech" hotspots in America. I would wager that Wiis are pretty commonplace here in and California, and perhaps New York, Chicago, etc. Everyone who wants one, has one now. Its rural America (which is the majority of consumers) that is probably still supply constrained, because the Wii is still "catching fire" there. That being said, the Wii's sales can't last forever -- I think the Japanese sales, where saturation occurs much more rapidly, is evidence of that. It doesn't have DVD, etc. support, so I doubt it will have the legs of the PS2. I wouldn't call it a "fad", but... its lacking some extended value that will eventually lead to Nintendo needing to release another console.. and sooner than Sony had to, in the last generation.
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Of course saturation will lead to the release of another console. That's just reflexive. But Japan is hardly indicative of buying and saturation trends in the rest of the world, especially for this generation.