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What's so hard to understand about this supply problem? Because it's not selling Wii numbers it can't be supply constrained?

Nintendo planned their production around what they were selling last year, which was significantly higher than what they expected when they launched. Similarly, MS planned their production from what they thought would be an incremental growth with a relatively large spike around Halo 3. They were wrong, 360 sales grew noticeably following the price cut and Halo 3. So they simply didn't plan to produce this much because they didn't think demand would rise so much. Keep in mind that they plan this stuff months ahead of time, so if there is an unanticipated rise in demand, it takes months to catch up. Look at Nintendo. It's been over a year and they're still trying.