Reggie: There is no secret Wii warehouse.

[NJ5]

YfzinJay said:

NJ5 said:

YfzinJay said:
For anyone that thought they were stock pile wii's it would just be unrealistic. WHy would nintendo spend money to stockpile wii's, when they can easily just sell them to retailers and make money?

1- Because the holiday season is the most important sales period of the year. If a kid wants a Wii for Christmas and his/her parents can't find one, there's a possibility they'll get a 360 or PS3 instead.

2- An even simpler way to look at it is that it's a good business principle to try to match demand with supply as much as possible. Demand is higher in Christmas, so supply should also be higher.

3- To get a load of free advertisement in newspapers ("Wii wins holiday sales" articles)

 

That's not what I meant. I meant if nintendo had consoles to selled they get them to retailers as soon as possible. You are talking about production scales. Obviously if nintendo could make more consoles, they would.

No, I'm talking about why it's a good idea to shift supply to the holiday season. Of course the best solution would have been to increase production to crazy levels, but that did not happen for several reasons:

1- Nintendo is pretty conservative.

2- It's not easy to quickly increase production, it takes months at least. Increasing production implies producing and assembling thousands of components at a faster rate, every single component has to be accounted for. Consider also that components come from different vendors, they're not all produced by Nintendo. It's very easy for bottlenecks to start appearing, and they're not easy to solve quickly.

3- They want to keep quality (which contributes to number 2)

According to my (and many other posters') theory, the second best solution is to stockpile units for the holiday season. Pretty soon we'll know if this theory is right, and then we can stop discussing this subject which is frankly getting tiring.