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I agree with the original poster. Nintendo really dropped the ball in capitalizing the situation.

Even when you outsource production, you make your contracts scalable and extensible. Also, production capacity does not have to stick around forever. You just write options into the contract.

They may have lacked foresight in how popular their "Blue Ocean" strategy would be. BUT... it's a year after launch and they still cannot nearly meet demand. Inexcusable.

The Wii is not a Cabbage Patch doll or Beanie Baby. Overproduction, if it even happened, would sell through in a short amount of time.

For those of you questioning people's credibility, I wonder what your own credentials are.