rocketpig on 17 January 2008
Yes, they're smarter. Which is why they wouldn't want to lose billions of dollars just to keep their "hot item" image through the holidays.
If Nintendo was losing money on every console, that strategy would make sense. It would keep demand up until costs were down and they could start cranking out units like crazy. Of course, this isn't the case with the Wii.
Nintendo is a very conservative company; they don't want to ramp production too far past demand and it's apparent that they were unsure exactly how the Wii demand would hold up over the long run.
Expect 2008 to be considerably different as Nintendo cranks out 20m+ consoles.
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