Console Production Shakeup - Interesting Read

[Steve 3.2]

HappySqurriel said: I could be wrong, but I suspect that by having multiple manufacturers Nintendo puts themselves in a stronger position to ensure that their systems are being produced at the highest quality for the lowest price; if one manufacturer is producing them at too high of a price, or at too low of quality, Nintendo would have a lot more power to enforce their contract.

Maybe. But according to this article, the Wii's defect rate is 'minuscule'. So it's unlikely they're worried about quality. And we all know that they're making money on the system. In fact, adding another company could be more of a headache. Now you have to coordinate the operations of both with all of your parts suppliers, shippers, etc.