'Tard Of The Week - 1/7/2008

[Fastrabbit09]

well, he did respond to my email!

Here is what he said about Nintendo losing money on each Wii sold:

"On the Wii subsidy I have to work from numbers I believe and current estimates I have put the Wii subsidy between $50 and $100 and is used as the reason they were manufacturing constrained otherwise they would have used the excess capacity at a number of ODM shops to make up the inventory shortfall. At a profit there is no reason why they couldn’t have outsourced this but at a loss too many systems would have made them unprofitable and managing that we believe led to their decision not to seek secondary ODMs (they had to know they were missing demand significantly). You didn’t supply a link to your source but I’ll bet it is simply a guess and probably doesn’t include burden."


And for my point about Nintendo now being a larger company than Sony, he stated:

"As far as size not sure what you are reading but you are way off. Sony is an umbrella company and employs 163,000 employees their profile is here: http://finance.yahoo.com/q/pr?s=SNE

Nintendo has 3,000 employees: http://en.wikipedia.org/wiki/Nintendo "

Since when does # of employees determine company size over MARKET SHARE?


Apparently as of 1/07/08 he believed that Nintendo didn't sell 1 million Wiis and cites some International Herald Tribune article. Looking on the site, I find this article: http://www.iht.com/articles/2008/01/01/business/nintendo.php which states that Nintendo sold 981,000 in NOVEMBER, in US ONLY. Hardly the bulk of the Holiday Season and only in one Country.