darconi on 12 December 2007
| mroseneo said: @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. |
I don't think people are giving Nintendo enough credit. They already have increased the capacity by a lot. They launched with around 1 mil per month and now they stated they're at 1.8 mil per month. That's a huge increase.
Some people really don't understand how difficult supply chains are, especially for things like this where each piece is produced by a supplier who gets it from another supplier. Working with suppliers for various manufacturing things, its reasonable to expect half an year at least to get production increases. An 80% or so increase from EVERY supplier thats involved in a year or so is actually pretty impressive.
