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I don't think anyone here really knows how easy or hard it is to ramp up production, so we're all just speculating. Personally I'm going to side with the OP. I can understand the shortages last year, but a full year later and they still can't meet demand? I just don't buy it that you can't ramp up production to ANY level given a full year. Which means they HAVE been too conservative despite the Wii's immediate succes a year ago, and that is a major blunder.

Producing too many Wii's was not such a big risk - the console has years to go so any surplus could eventually be used. But now they're just abandoning a part of the market to their competitors. The biggest damage from this shortage imo is that shops are always advertising the 360 and the PS3 but rarely the Wii because the few Wii's they have will sell without advertising anyway. So people not into gaming get exposed to the 360 and PS3 much more than to the Wii.

Apple never seems to have a problem meeting demand for new iPods at launch day btw, let alone a year later.