First off I give Nintendo a TON of credit for starting off selling the Wii faster than any system before it. Yes they have doubled their production in their first year and that is great.
Now, I see where you are coming from and I agree with you Vizion. Nintendo did drop the ball. It amazes me to see how many people are so clueless about the manufacturing process.
1. Nintendo does not build their own factories nor do they need to. They sign contracts with third parties to lease their factories production capabilities. They do not build their own factories that is just ridiculous and would take years.
2. They don't hire security, production workers, or QA people to make or inspect quality of the product this is the third parties responsibility to make the product to Nintendo's specs. That is part of the contract.
Why do people think it is so hard for Nintendo to increase production? There is basically just a couple of things Nintendo needs and that is about 6 months for the third party manufacturer to retool some lines and get their factory ready for production and money for a contract. That's it! This is not complicated.
The hard part is to know how much to produce 6 months in advance, and Nintendo has missed in this projection. So if Nintendo wanted to be at 5 million a month they could be, but it would take 6 months from when they decided and they would be stuck at that level for about a year (length of contract).
Now I going to get crazy and say that the Wii will be supply constrained again next holiday season because Nintendo will not increase production enough. I knew back in January they would be behind demand all year, and I bet they do it again next year.
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