My theory on why Wii sales have dropped

[HappySqurriel]

I may be crazy but ...

1. We're (roughly) 2 Weeks away from the mid year fiscal report for Nintendo and they're (by our accounting) 320,000 units shy of 12 Million units sold; it is likely that they want to announce that they have sold 12 Million units worldwide in this report. At the current rate of sales they will 'just' make it.
2. Nintendo has announced that they will have unprecidented availability of systems for Christmas which would imply that they were planning on (dramatically) increasing supply for Q3 of this year.
3. It is likely that Nintendo would have to lower production in the short term in order to ramp up production to the next level.

When you consider all of that it is possible that in August (when Nintendo passed the 12 Million unit produced mark) Nintendo began their needed facilities upgrades in order to increase Wii production to 2 (or 2.5) Million consoles per month. This meant that Nintendo had to ration their systems for the remainder of the fiscal period and divert them to the regions which needed supply the most.

If I'm correct we will see in a couple of weeks Nintendo announce their sales for the past half year and their projections for the remainder of the year; my expectation will be 12 Million systems sold LTD with 9 Million more to be sold by March 31st 2008.