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Shane said:
It's taken Nintendo 5 months to even show signs of boosting supply. I'm not real confident in their ability to react quickly to market conditions considering.

But how many of those months was it clear that nintendo needed to incerase production?

Between launch demand and the holiday period it should have been expected that the Wii was going to be sold out given the supply Nintendo had; just satisfying launch demand could push the Wii to be sold out late into January or early into february. I suspect that you couldn't be sure that the Wii was being undersupplied until mid February or early March as line-ups and shortages continued.

Right now (with increased production) Nintendo will be cautious about increasing production until they know that they are not dealing with residual demand but in 2 months (if it is still hard to come by) they will be looking for ways to increase production as needed; certainly, it may take them 6 weeks to increase production after they determine that it is necessary but that still is within this fiscal year and prior to the upcomming holiday period.