mroseneo on 12 December 2007
@loadedstatement:
You are right on spot. I don't think I have seen anyone state the true reason Nintendo doesn't make more Wiis like you. Just as you said, building more factories would be a bad choice for them, as demand will drop off eventually. Also, a large investment in a factory would increase the fixed cost put on each Wii sold. This would reduce their profit. While they may say that they are putting out as many as possible, they are really saying that they are putting them out at the most profitable rate. Sorry for my rant. I am taking business accounting now.
