Obviously the don't know much about production. He made it sound like ramping up product manufacturing, with various components, is as easy as upping software production. And i wouldn't consider calling Nintendos production increases conservative. After all, Nintendo more than tripled Wii production within a year. And i expect, at march 08, production will be upped to 2,3M per month.
Anyway, the manufacturing process, from supplier to the end product, isn't simple. It's easy to look at the final assembly line and say, that it needs more capasity. But let's look at few main parts in Wii:
-CPU
-GPU
-Motherboard
-Optical drive the optical drive has also couple of components, that has it's own suppliers, biggest parts being laser, motor and cover
-Internal memory
-Radio transmitters/receivers
-Cover
-The Gamecube controller and memory card connectors
-Sensor bars
-Controllers have various components from different suppliers
Every components production needs to be ramped up, and the more customised parts are being used, more harder (and of course more expensive) production ramps will be. Basically the limiting factor in production increases is, that what is smallest quantity of custom parts, what some certain supplier is capable/willing to supply and in the other end, the largest quantity some other supplier is capable/willing to supply. And these two quantities has to meet in final assembly.
Ei Kiinasti.
Eikä Japanisti.
Vaan pannaan jalalla koreasti.
Nintendo games sell only on Nintendo system.
