Is the wii still supply constrained?

[azrm2k]

Crucial said:

brute said:

Crucial said:
I really wish people would stop calling it "supply constraints". I mean, everyone understands that Nintendo does this on purpose right? They have had "supply constraints" for 20 years. They do it to stimulate demand.

Please stop acting like Nintendo is so incompetent that they couldn't open a few more factories when the Wii took off. They could have more than enough Wiis on the shelves for everyone if they wanted to.

i dont think they would do that

Well, they are smarter than you.

Do you really think factories popup overnight?  It takes time and resources to committ more factories and warehouses to handle such an increase/decrease in supply.  Before Wii launched ppl already wrote it off so Nintendo didn't want to waste excess stock by manufacturing tons of Wiis early that wouldn't sell till later since as the process goes along it becomes cheaper.

Hypothetical:

It cost em $230 to make a Wii at launch

It will cost them $170 to make a Wii 2 years from now

Clearly it would be in their best financial interest not to produce 40 million excess Wiis that wouldn't sell till later if they could be made cheaper later down the road anyway not to mention the cost of storage.

Nintendo already increased production earlier and it still wasn't enough.  Undoubtedly before the year is done they will increase again but it is very impractical for you to expect them to be able to produce 6 million Wiis a month starting February.