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Forums - Sales Discussion - Digitimes:Nintendo Wii production increase delayed

Perhaps we gave jumped the gun in predicting such high numbers for Wii this winter?

 


http://www.digitimes.com/systems/a20070816PD217.html

Nintendo delays Wii expansion plans
Yen Ting Chen, Taipei; Emily Chuang, DIGITIMES [Friday 17 August 2007]

Due to the tight supply of components such as IC chips and PCBs, Nintendo's plans to expand production of its Wii games console, originally set for June, have been delayed, according to Taiwan-based component makers.

With the delay of its plans, any easing of the Wii shortages in the worldwide market is unlikely to be seen in the second half of 2007, said the component makers.

Since Nintendo launched Wii in November 2006, the company has only introduced the games console in select regions such as the US, Japan, Europe and Australia. Worldwide accumulated shipments of Wii totaled 9.27 million units by June 2007, according to sources.



I think this is worthy of a thread since there has been alot of talk about how the market share will look after the holidays. Perhaps Wii will be more supply limited that we thought?

 

On the other hand however reading this really makes me laugh when we have articles saying that Nintendo isnt seriously pursuing increasing supply like they should (see here). As it turns out according to this article they are actually experiencing tight supply of certain chips etc. Ive always felt that people expected and assumed Wii's should be immensely easy to produce quickly due to it not being a large step above the Gamecube, however those same people really ignored some of the new tech included in the Wii. In any case, looks like we now know why Nintendo was so conservative when they gave their forcasts earlier this year.

 

No longer am I expecting 1m sold in both Nov and Dec. Maybe December, but Im going to cut back my predictions. 



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Definitely not good for the Wii. I think it has a chance to bury the 360 and the PS3 this Christmas if it could fill the stores with consoles.



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Whats their production capability now ?



akuma587 said:
Definitely not good for the Wii. I think it has a chance to bury the 360 and the PS3 this Christmas if it could fill the stores with consoles.

This could place Wii and 360 very close to one another at the end of 07.  Around 14.5  million each, figuring one million a month for Wii, while 360 can move 3-4 million in november and December.  Which could also leave room for PS3 to make comeback in 08. (I know comeback isn't the best word.)

ADD-EDIT: Though I am (almost) sure that the chip manufacturers were planning some type of minor holiday production shift for Wii parts anyway.  Think of it this way, if you make chips for all different applications, wouldn't you plan ahead for pre-holiday shift to more production in a toy-component.



I would cite regulation, but I know you will simply ignore it.

Yup, this is a real story. It doesn't really help us with these facts though:

i) Current production limits

ii) How much of a delay there is

iii) Whether it just affects the ramping up of production, or whether it prevents *any* increase in production

...

Regardless of how "hi-tech" people think the Wii is, it IS a cutting-edge piece of hardware. Not something that is "easy" to manufacture.

I wonder what the tighest components are - probably memory, EEPROM (internal memory) - and maybe the CPU/GPU. 

@Hus - considering last week they sold 250k WW, multiple by 4.3 --> and you get about 1.1m / month.

Lets assume they ARE stockpiling (at least 10%, maybe 20%), and that approaches 1.3m / month. Still not a quantity to sneeze at.

...

As I mentioned many times, this (manufacturing quantity) is the most important factor for Ninty this Xmas. Nothing else could really dampen their holiday season.

(also note that any "increase" could be in the vicinity of 100k-200k/month, which is still another 1m units for Xmas). 



Gesta Non Verba

Nocturnal is helping companies get cheaper game ratings in Australia:

Game Assessment website

Wii code: 2263 4706 2910 1099

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They where set for June and are delayed to what point? A news that increased production was set to start in June is coming out in August? Maybe because its started now? (2 Month delay)

How much have they produced before and after increasing? Sorry, we need more information ;)



That certainly explains the recent tailing off in sales, doesn't it?



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steven787 said:
akuma587 said:
Definitely not good for the Wii. I think it has a chance to bury the 360 and the PS3 this Christmas if it could fill the stores with consoles.

This could place Wii and 360 very close to one another at the end of 07. Around 14.5 million each, figuring one million a month for Wii, while 360 can move 3-4 million in november in December. Which could also leave room for PS3 to make comeback in 08.

I still doubt it.

Nintendo would not overstate their production limits in their financials - so I am sticking to 22-23m by March '08, and around 17-18m by 1st Jan '08.

...

And I wouldn't even dream of a PS3 "comeback" in '08... just yet. Some people still think it will sell 12m (WW) by the end of '07... 

 



Gesta Non Verba

Nocturnal is helping companies get cheaper game ratings in Australia:

Game Assessment website

Wii code: 2263 4706 2910 1099

Lanceuppercut said:
That certainly explains the recent tailing off in sales, doesn't it?

Is that sarcasm? If so, you missed the close tag ;)

...

For those that think that Wii sales have "weakened", here are the recent weekly (WW) sales:

12th August: 250k

(week before)... 246k

263k

266k

285k

237k

255k

228k

231k

225k

3rd June: 219k 

(etc..)

I don't see any evidence of "weakened" sales ;)

 

 



Gesta Non Verba

Nocturnal is helping companies get cheaper game ratings in Australia:

Game Assessment website

Wii code: 2263 4706 2910 1099

Well whats the highest xmas sales for any console WW, the last 2/3 months of the year. Has any one done around 7 million ww ?

If yes then the other two could mount a nice comeback just through the virtue of having plenty stock to sale.