Wii production, demand, and sales.

[Sqrl]

MaxwellGT2000 said:
Alright so I was reading a bit of info on how Nintendo makes the Wii, and basically the lack of supply is due to the company they get to make certain parts of the Wii cant keep up with demand, so the thing I was thinking is why dont they get another company to help make the same part? I know its not that simple but you gotta know companies would jump at the chance to cash in on the Wii, if the levels are maxed at ~1 to 1.5 million a month they could always get another company to make about .5 million of the part they need even that would help some with all the demand out there.

Also all of the constraints on supply has made some people so mad to the point where they're boycoting Nintendo, which is lost business for the company and a little bad reputation to boot, just seems to me the smart business thing to do would be take their product to a company that could make the parts faster, hopefully to the point of DS like production.

All in all I think they will get things figured out cause if I remember right they had a few of the same problems with DS when it really took off the year after it was released, but maybe they should have prepared better this time.

Multiple companies producing the same part is a part of most large scale supply chains.  A good portion of supply chain management deals with how to get those parts where they are needed when they are needed regardless of where they comes from or how many locations they come from and how varied the travel time between those places and the final destination is.  

So to that point, they are already doing it.

 

As for the production issue as a whole they are definitely ramping up production but as was mentioned they are trying to do it in spurts so that the can take the time to assess the situation before upping production to avoid being burned again.  Many people have said they are being cautious or conservative but that logically brings the question of "How can a company that is producing more consoles per month than any other console ever has, (and got to that point within the first 9 months) be considered conservative?"