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

I'm with FishyJoe here. I don't think they could have rushed that article to publish any faster. It's like News Wire Lite.



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shams said:

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).


 There were articles flying around last year before the Wii launched that Nintendo was having problems with Manufacture of Wii equipment.  We know now that obviously those reports were wrong.  This is no different. If anything Nintendo may have seeded this rumour themselves to make the competition complacent before the supply damn breaks wide open for the Wii.

Also, this could be talking about Wii Fit's roll out or another accessorie for the Wii we don't know about.  Also how much stuff is actually made in Taiwan by Nintendo...?  I thought Nintendo was keeping most of it's production in China...?  This is what we call FUD people..  Until Nintendo revises it's estimates lower (which I can't see happening) this ramp up is happening and has happened already.  Why announce that your increasing production in June/July if you were delayed?  Makes no sense... Nintendo would have known about this before revising it's shipments est.



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

I'm with Fishyjoe and Ivader on this one, the article is vague and offers information already likelyto be old. It sounds like there may have been a delay but only from June to July. I very much doubt Nintendo would have said they were increasing supply if they were still indefinitely delayed. Or of course as has been mentioned maybe the increase from 1-1.3 million has been completed but the increase from 1.3-1.5 million is delayed.

Although this would reinforce what Shams keeps trying to tell people, the Wii is not an easy product to manufacture and it takes time to increase poduction. There's an article about Wii component makers raking in the profits that mentions the maker of the accelerometers is building a 3rd factory just to handle Wii demand. When you're a company with only 2 factories and one major customer you don't make the decision to build a 3rd factory for one customer lightly.

I think though we can see that production has gone up. The was an evident dip in Wii sales last spring when apparantly holiday stockpiling began and since then Wii sales have climbed back to and above 1 million a month. I very much doubt that's because Nintendo decided to stop stockpiling and to sell off some of the inventory.



FishyJoe said:
Who is 'the component makers'? I'm not saying the article is untrue, but the entire article is very vague. The information is about as close to worthless as you can get. All the information is unsourced and there is zero hard data presented. They can't even provide the source of the June 2007 data, which makes me highly suspicious.

 I hope this helps FishyJoe:

http://kotaku.com/gaming/business/wii-making-companies-rich-causing-corporate-expansion-289601.php

Satan said:

"You are for ever angry, all you care about is intelligence, but I repeat again that I would give away all this superstellar life, all the ranks and honours, simply to be transformed into the soul of a merchant's wife weighing eighteen stone and set candles at God's shrine."

Not really. I'm not asking who the manufacturers are. I'm asking who provided the information and why the article seems lack to any detail that can be verified.



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Ok... I just went back to the website... and Digitimes are too dumb to check their own stories. 2 suppliers were unable to keep up with Demand. The one is currently making the sensors for the WiiMote, hence the third factory coming online. The other supplier lost out on the expanded contract, this contract for equipment was moved to another manufacturer called Sunplus (July 19th). Nintendo will meet their expectations, if anything the company who couldn't keep up and who's now redundant was the one talking to this reporter at Digitimes (without realizing Nintendo went elsewhere) look at the story links under the main story. It spells it all out for us.

EDIT*** Here is some info on Sunplus which talks about their IC manufacturing skills:

http://w3.sunplus.com/about/0103.asp


     

 



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

DarkNight_DS said:

Ok... I just went back to the website... and Digitimes are too dumb to check their own stories. 2 suppliers were unable to keep up with Demand. The one is currently making the sensors for the WiiMote, hence the third factory coming online. The other supplier lost out on the expanded contract, this contract for equipment was moved to another manufacturer called Sunplus (July 19th). Nintendo will meet their expectations, if anything the company who couldn't keep up and who's now redundant was the one talking to this reporter at Digitimes (without realizing Nintendo went elsewhere) look at the story links under the main story. It spells it all out for us.

EDIT*** Here is some info on Sunplus which talks about their IC manufacturing skills:

http://w3.sunplus.com/about/0103.asp


     

 


 To borrow the phrase from another thread, that is some good "Internet Matlockery".



To Each Man, Responsibility
Sqrl said:
DarkNight_DS said:

Ok... I just went back to the website... and Digitimes are too dumb to check their own stories. 2 suppliers were unable to keep up with Demand. The one is currently making the sensors for the WiiMote, hence the third factory coming online. The other supplier lost out on the expanded contract, this contract for equipment was moved to another manufacturer called Sunplus (July 19th). Nintendo will meet their expectations, if anything the company who couldn't keep up and who's now redundant was the one talking to this reporter at Digitimes (without realizing Nintendo went elsewhere) look at the story links under the main story. It spells it all out for us.

EDIT*** Here is some info on Sunplus which talks about their IC manufacturing skills:

http://w3.sunplus.com/about/0103.asp


     

 


To borrow the phrase from another thread, that is some good "Internet Matlockery".


 Well I'm just some internet meathead... you'd think their own reporters would take the time to check their own site for news relating to their story before posting a false story.



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

If Nintendo can't keep up with demand then some buyers will buy the other consoles.



Vizion said:
If Nintendo can't keep up with demand then some buyers will buy the other consoles.


 Might this be why they are stockpiling?   To ensure enough consoles will be on shelves in spite of production issues?



The rEVOLution is not being televised