Lazard: Wii Production Reaching 1.5 Million Per Month

[archmagus-21]

cjpierciiw said:

Kytiara said:
One of the reasons Nintendo has been a successful business for so long is because they don't make potentially rash business decisions. I have a feeling their business guys know what they are doing better than anyone else. As for the production increase, I'd suspect they might increase it even further as they find more production partners. Plus, nobody can tell how much they've increased production overall. All the guesses are based on shipment numbers, so they could quite possibly have increased it even further specifically to build up for the holidays and for the big game releases.

I disagree with you on this. Lets look at the DS, it has had supply problems since lauch 2.5 years ago! How many more could they have sold if they had met demand? Obviously their business guys have been wrong with the DS production. The sad thing is they have had this experience with the DS and now they are doing worse meeting the demand for Wii.

Have you any bloody idea how many DS's they're making a month? They're churning them out faster than Sony made PS2s at its peak. Something like 3 million a month. Production capacity is NOT unlimited. And when you consider that the DS is virtually free of any technical flaws (apart from the hinge thing), that makes it an even more impressive feat, because the more stringent the quality assurance (and Nintendo's QA is top-notch, because theirs are the only systems I know that have not had any major or recurring complaints), the lower the production yield becomes. To maintain production of 3 million units of a system consisting of delicate miniaturized components and STILL have a spotless QA record is an simply amazing.

It's not supply problems. Its DEMAND.