Analyzing the Analyst: Michael Pachter is Wrong

[Demotruk]

bmmb1 said:

elticker said:
constraints is bullshit nintendo is probably undershipping to raise the prices of how much they sell it to retailers for Or demand is decreasing.

And you say that based on what facts?

Fact 1: Nintendo has lowered at some point last year its expectations for the FY that ends March 2010 and reduced production

Fact 2: Wii had a record breaking month in December 2009, not just by Wii standards but by any standard, selling in the US 3.8 million consoles. The previous record holder was the PS2 around 2004 or so, with 2.8 million. Along with these new consoles, a lot of Wii Fit Plus with balance board and Wii Play were sold.

Combine the two facts (reduced production and totally unanticipated level of sales), and you have reall supply constraints.

Yep, we know that Nintendo reduced production first in the summer of 2009 and again in November of 2009, which was right before sales exploded again (thank you NSMB). There are news reports available from both these time periods.