It's ..... a challenge???

http://www.joystiq.com/2010/02/10/nintendo-replenishing-wii-supply-will-be-a-challenge/

So it was a mistake to scale down production? or it's challenging because something else?

Either half there factories blew up, or they are doing something to generate more demand, Sony is doing the same exact thing with the PS3. Atleast that's how I see it.

Both companies significantly increased supply in nov/dec. That probably meant by passing normal shipping procedures to hurry stock from factory to shelf. That will inevitably leave low levels of stock as things return to normal in Jan.

Compounding that is the fact that both Wii and PS3 are relatively popular right now as compared to their regular supply. This is forcing it longer than usual to get back on track post December.

As you may know from my other thread I had a conspiracy going, but the above statements make a lot more sense when you look at the larger picture.

Which is kinda too bad, because your conspiracy fed so nicely into all the teasing Nintendo has been throwing around.

It's a myth that that increases demand overall. All it does is force the people who want your product to try harder to get your product, which makes it look like demand is up in the short run, but it also makes it harder for people who may not be quite as enthusiastic about the product, who will simply give up and buy something else if they don't find it. In reality that tactic reduces sales, it doesn't improve them. It doesn't even give Nintendo or Sony the benefit of being able to charge higher because the profiteering (selling for very high on ebay) is done by others and not them.

wii2 confirmed :)

Pre NPD damage control?

I guess you missed the threads and articles on the matter.

SuperChunk is absolutely correct.

Nintendo airlifted consoles into December. Normal transport takes weeks to go from production to retailer shelf. So because the current stock was moved forward to a December shelf date instead of today, we have a shortage. Anytime a company airlifts their product, there will be shortages after the fact.

That was done to prevent shortages in December which would have looked far worse than a shortage in Jan.

So there is a challenge to get product to shelves without either more airlifting (and it's a pain in the butt to spontaneously coordinate a combination of airlifting and product already in the normal shipping lanes out of the holiday season when it's planned in advance) or opening new production lines (and that's a bad idea because you'd have to close it right back down once the shortages are alleviated and it takes a long time to set up and operate a new production line anyway).

Quit trolling, dude.  Nintendo had the best December in history last year.  They shattered their own record when just earlier in the year they were producing far more units than they could sell.  If they reduced output its because before the price drop every indication said they were going to have massive warehouses full of Wiis if they didn't cut production.

Really, though, that doesn't increase demand.  It may have in the first couple of years, but now it just means someone isn't going to get what they want and they'll probably just get something else.  People might line up for the hot new thing, but the Wii is basically old news now and it no longer has the immense cool factor that'd be necessary for someone to keep going out of their way.