Dryden said:
Bodhesatva said:
On the contrary, the Christmas period is the only time where you are likely to lose substantial portions of customers. During the middle of the year, people are buying video game systems largely for themselves; if they cannot find one, they'll usually wait. I'm sure a small portion get impatient and buy a PS3 or 360 instead. The problem at Christmas is that most people are no longer buying for themselves, they're buying for other people, and that changes the game. Instead of just competing against the PS3 and 360, the Wii is competing against HDTVs, GPS systems, Ipods, Silk Neckties, games for systems the people already own, and so forth. The criterion at Christmas is to find a gift that the receiver will like, and once that is satisfied, the gift giver stops looking. If they can't find a Wii with any alacrity, choosing another option besides a Wii will happen much more frequently at this time of year than it will in June. The fact that nearly every major electronics retailer stockpiles for the holidays is rather convincing proof of this phenomenon. |
I agree with normal business models, but not with Wii. It's uniqueness makes it irreplaceable in terms of numbers that will have a lasting impact on the consoles lifetime sales. People who can't find a 360 may buy a PS3, or vice versa outside of the most loyal Sony fanboys or Halo die-hards, but the Wii bucks that trend.
If a person wants a Wii, they'll wind up getting one. |
that's exactly bod's point. If someone wants a Wii, they'll get one. it doesn't matter if they get one in July or Next July, it's a sale for Nintendo. What Nintendo don't want to lose are the people who are buying a Christmas present for little Timmy. If during the holiday season there are not enough Wiis, then little Timmy is going to get something else. He may not wind up getting a Wii till next year, or ever.
Christmas buyers can't afford to wait around and eventually buy a Wii. They have a time limit. If a Wii does not present itself within that time limit, then they're just going to have to buy something else. That is a lost sale.
Hence, it makes sense to stockpile for Christmas, where the people who buy the system are most likely to be lost buyers if they can't find one, rather than during the summer, where a person looking for the system is likely to just wait until they can get one.
