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It's ..... a challenge???

Nintendo has responded to Joystiq's inquiry into the current Wii supply issues, with Nintendo of America's Senior Director of Corporate Communications Charlie Scibetta telling us, "In the short term, replenishing Wii inventories will be a challenge." He continues, "But we are doing everything we can to satisfy consumers looking to purchase a Wii system."

http://www.joystiq.com/2010/02/10/nintendo-replenishing-wii-supply-will-be-a-challenge/

So it was a mistake to scale down production? or it's challenging because something else?