Dryden said:
There have always been and will always be fashionable items that are sold out at Christmas time, whether it's G.I. Joes or Swatch Watches or Cabbage Patch Dolls or Furbys or Tickle Me Elmos. That doesn't change a thing. Falsely manipulating the supply chain doesn't change that. Sold = sold. Wiis will not be available at Christmas unless Nintendo can contract with another assembly partner, as Foxconn is clearly making as many as they can. Bringing another partner online to build more units is the only solution. The only thing stockpiling achieves is disorienting customers who are in stores right now, cash in hand, ready to buy your product and all the accessories and peripherals with it. Not only would Nintendo be losing money on current lost software sales, they'll lose far more money later in the life cycle as all the current titles wind up back at EB Games/Gamestop as used over the course of a full calendar year since the console's launch. At that point, we're talking about tens of millions of dollars of profit that Nintendo is just handing over to EB as a used software seller. I don't buy it. Holding back stock would be the dumbest business decision Nintendo has made since the Virtual Boy if it were true. |
I think the idea is that if they keep back a large number of consoles now, people won't be as inclined to buy a console from the competition.
Here is a possibility.
A person walks into a store right now to buy a Wii(for any reason, and let us say Nintendo is storing extra consoles for Christmas). They see that there are non. They say "OK I'll just come here next week for one.". They don't buy a 360 or a PS3 because they aren't in a rush to get anything. Microsoft and Sony don't sell a console and Nintendo has time to make and ship one to the store where this person shops.
Another person has to buy a Wii for their child for Christmas(This time Nintendo has not stored up extra consoles mind you). They see that there are non. They begin to get uneasy because they need to buy a console for their child. They see a 360(or PS3, you can choose), and buy it. They did so because they didn't want to have nothing to give to their child. Sony or Microsoft has now sold a console. Nintendo (and the other company the person didn't buy a console from) has probably lost a sale. The person will probably not buy another console for a while(or ever) because they just bought one.
I think that is a good way to explain it. I'll edit or re-post if I think of a better way.
