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catofellow said:
The problem is that Nintendo isn't confident they can keep this demand going.  Factories are not disposable things.  If Nintendo wanted to have 5 million consoles ready for November they could have, but they knew they couldn't sell 5 million per month indefinitely.  This would leave factories sitting around doing nothing.  Its not like the parts are rare.  Nintendo just wants to produce at the level of the long term demand.  They do not care if they lose a few sales in the short run because it isn't profitible to produce at a level that will guarantee there will be no shortages anywhere in the world at any time.

Good point. Nintendo's at the sweet spot right now. They've launched at a mass market price and have excellent buzz. Longer term, they can get by on the 600-700k units per month they shipped in March.