Lazard: Wii Production Reaching 1.5 Million Per Month

[cjpierciiw]

archmagus-21 said:

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.

Yes I have a very good idea and I pick apart all their financial reports I know what they are producing. I totally respect the numbers that they put out. But that doesnt chang the fact that they are too little too late. If people cant see this with the Wii than they are truely blind.

In a way production capacity is UNLIMITED. All they have to do is contract more maunfacturers to make it.

They have been maintaining 2.5 million, started doing in late 06. Iwata has considered uping it even more.

Look at Ipod they have sold 50 million in their last 4 quarters. How many have they had to produce to meet that? More than the DS. It might even be harder for the Ipod because there are multiple version.

Archmagnus you make some very good points and I agree with all of them except the production capacity.