| OooSnap said: Nintendo claimed they were shipping 1.8 Million Wiis a month (soon to be even more). According to this site it sells about 400k worldwide every week. Assuming Wiis are flying off the shelves what accounts for the discrepency? |
Simple:
Consoles sell at a different pace at different times of the year. It takes about 3-4 months depending on your situation to go from the decision to increase production to the actual increase taking effect fully. So you can either raise and lower production throughout the year spending money on stuff to handle the logistics of the affair or you can set one steady rate of production that will allow you to build up surplus for the periods of rapid sales.
This is the default stockpiling that happens in every company and many don't believe it happens at Nintendo because of Reggie's comment that it doesn't. The problem with this of course is that in December of 2007 there were nearly 4.3 million Wii sold. This of course requires us to ask..ok then so where did the other 2.5 million units come from? The answer is of course stockpiling.
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| To Each Man, Responsibility |
