Admit it, Nintendo totally blew it.

[loadedstatement]

Vizion said:

Nintendo could have capitalized immensely if they weren't so conservative and had more Wiis produced. I wouldn't doubt there could have been 10-15 million more Wiis in people's homes today if there were that more many available.

If the userbase was that much larger even more developers would have shifted more of their resources to the Wii thereby creating an even higher demand for the Wii and decreasing demand for the 360 and PS3.

 All year long the Wii was selling like hotcakes and Nintendo still didn't increase production to meet demand especially for the holiday seasons. What a huge opportunity Nintendo missed.

Don't get me wrong, Nintendo is still greatly successful even with this huge mistake. But they could have been so much more successful and dominant if they had more Wiis produced.

 

You are wrong for a couple reasons.  First off, before I begin, you said Nintendo didn't increase production.  They did.  They increase to producing 1.8 million a month.  Now, while you are right about there being a potential 10-15 million more Wiis in the consumers hands, think about this.  To do that, Nintendo would've needed to build 2-3 more factories.  This takes 1. Money and 2. Time .  First, Nintendo has stated (along with many other people) that they had no idea of the Wii's popularity.  As a company, you dont want to be left producing 5 million Wii's a month.  Sure you will meet demand quickly.  But all of a sudden, 3 months later, you will be left with A.  Millions of Wii's left un-bought (Loss of profit) and/or B. Factories that do nothing because you dont need to make that many Wii's anymore.

 

So I think Nintendo has done its best to combat a problem no one really saw coming.  Demand will die down eventually.  This is the holiday season.  Its CRAZY.  Every year.  Nintendo is more profitable doing what they are doing now.  If you think about it, Nintendo may lose some customers because they cant get a Wii.  They will choose to buy the competition.  But a lot more people will become interested in Nintendo's product solely because it is hard to find.  They will do research, talk to friends to see what the buzz is about.  So I think the two neutralize each other.