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Forums - Sales - Admit it, Nintendo totally blew it.

Xyrax said:
Vizion said:

Nintendo could have capitalized immensely if they weren't so conservative

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selling like hotcakes and Nintendo still didn't increase production


 

Nintendo started this gen producing a million consoles a month. By comparison, the Gamecube had to actually stop producing consoles way before its life ended due to them over producing more than they could sell. The system was a failure, and hot off a failing console they actually had the balls to make a million a month. More than the 360 produced when it launched, and more than the PS3 produced which was hot off a 120m selling console.

Lesson?: Producing more consoles in the first year than ANY OTHER CONSOLE IN GAMING HISTORY DOES NOT, AND CANNOT EVER QUALIFY AS CONSERVATIVE. EVER.

 

And on your second point. As I stated Nintendo started production at 1million a month, a figure only matched by the PS2 at its prime, since launch Nintendo has raised production to 1.8 million a month, dwarfing that of even the PS2, in its prime.

 

Lesson?: Nintendo DID IN FACT INCREASE PRODUCTION WHEN THE DEMAND SHOWED ITSELF.

 

People here have a serious problem. You cant seem to seperate unprecedented demand and "conservative production". To some of you, anything that doesnt meet current demand qualifies as conservative. And thats just stupid. Right now we have Nintendo pumping out more consoles than any in history by a MASSIVE margin, and because the demand somehow keeps scaling with their increases in production, people are calling them conservative.

 

I vote you stop using the word until you learn its meaning. 


Actually, Wii was planned to be manufactured 500k a month. After E3 2006 Nintendo started to ramp production to 1M, so that was the first production ramp. The latest production ramp up was delayed because of supplier couldn't meet demand. Wii uses a lot of custom parts, which means the production ramping is harder and more expensive than using bulk parts. So, 3-6 months for 500k increase isn't conservative, it's actually pretty fast and pretty much. It may be even the fastest schedule possible, at least in some cases. And besides, Wii is manufactured currently at more than 350% rate compared to original. But otherwise, agreed with Xyrax.

Ei Kiinasti.

Eikä Japanisti.

Vaan pannaan jalalla koreasti.

 

Nintendo games sell only on Nintendo system.

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I wish I could totally blow it like that.



I'm a mod, come to me if there's mod'n to do. 

Chrizum is the best thing to happen to the internet, Period.

Serves me right for challenging his sales predictions!

Bet with dsisister44: Red Steel 2 will sell 1 million within it's first 365 days of sales.

bdbdbd said:
Xyrax said:
Vizion said:

Nintendo could have capitalized immensely if they weren't so conservative

---------------------------------------------------------------------------------

selling like hotcakes and Nintendo still didn't increase production


 

Nintendo started this gen producing a million consoles a month. By comparison, the Gamecube had to actually stop producing consoles way before its life ended due to them over producing more than they could sell. The system was a failure, and hot off a failing console they actually had the balls to make a million a month. More than the 360 produced when it launched, and more than the PS3 produced which was hot off a 120m selling console.

Lesson?: Producing more consoles in the first year than ANY OTHER CONSOLE IN GAMING HISTORY DOES NOT, AND CANNOT EVER QUALIFY AS CONSERVATIVE. EVER.

 

And on your second point. As I stated Nintendo started production at 1million a month, a figure only matched by the PS2 at its prime, since launch Nintendo has raised production to 1.8 million a month, dwarfing that of even the PS2, in its prime.

 

Lesson?: Nintendo DID IN FACT INCREASE PRODUCTION WHEN THE DEMAND SHOWED ITSELF.

 

People here have a serious problem. You cant seem to seperate unprecedented demand and "conservative production". To some of you, anything that doesnt meet current demand qualifies as conservative. And thats just stupid. Right now we have Nintendo pumping out more consoles than any in history by a MASSIVE margin, and because the demand somehow keeps scaling with their increases in production, people are calling them conservative.

 

I vote you stop using the word until you learn its meaning.


 

Actually, Wii was planned to be manufactured 500k a month. After E3 2006 Nintendo started to ramp production to 1M, so that was the first production ramp. The latest production ramp up was delayed because of supplier couldn't meet demand. Wii uses a lot of custom parts, which means the production ramping is harder and more expensive than using bulk parts. So, 3-6 months for 500k increase isn't conservative, it's actually pretty fast and pretty much. It may be even the fastest schedule possible, at least in some cases. And besides, Wii is manufactured currently at more than 350% rate compared to original. But otherwise, agreed with Xyrax.

 QFT on both posters.

 

It is also worth noting that Nintendo's quality control is the only conservative aspect of the company keeping Wiis from rolling out faster than they are.  



To Each Man, Responsibility

Could you provide sources for each of your monthly rates before you start using them as facts? I mean, seriously.



Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.

reverie said:
Could you provide sources for each of your monthly rates before you start using them as facts? I mean, seriously.

Well its not exactly hard to find, and alot of us have been here since this site started so we tend to assume everyone remembers but:

 

A Nintendo spokesperson has confirmed to GamesIndustry.biz that the company plans to increase Wii production as demand for the console continues to outstrip supply.

Dated: 26/04/2007

"For the first three months of this year we have been producing one million hardware units per month. We are increasing the manufacturing capacity and forecast to ship 14 million in this fiscal year to our distributors and retail customers globally," the spokesperson said.

"We have put solid production plans in place to ensure a steady flow of product through 2007. We are constantly replenishing Wii supplies however with such high demand, stock is still flying off shelves so consumers should continue to be in touch with their local retailers to confirm when new stock is arriving."

 


Nintendo Churning Out 1.8 Million Wiis Per Month

Dated: 11/16/2007

In an interview with Next-Gen, Nintendo of America's George Harrison was asked just how many Wiis we can expect to see on the shelf come Christmas time. Despite initially trying the old "well, we won't meet demand" line, George eventually fesses up and dishes with the cold, hard numbers:

 

"I can't give an exact number for November and December. We had to make our final decision on how much to produce each month for the holidays back in the summer. It takes about five months for us to increase the actual monthly rate of production. We're at a rate now worldwide of about 1.8 million Wiis produced every month, and that's going to sustain itself until we get on top of this."

 

 

As for the shipment numbers for November 2006 (launch) through December of 2006 I dont personally have them. Bdbdbd says itwas 500k, I assumed 1m a month since thats was what it was Jan thru March as confirmed by Nintendo themselves above. I dont know if they ever went on record saying what their production was for the last 2 months of 2006. If they did I missed it. But in any case, heres your source.



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reverie said:
Could you provide sources for each of your monthly rates before you start using them as facts? I mean, seriously.

For most posters all you need to do is ask and they are generally happy to provide sources.  Posting a link for every tidbit is extremely tedious and there isn't always a clear line as to what needs a source and what doesn't, so it is usually done on a per request basis. 



To Each Man, Responsibility

Since it takes five months to ramp up it won't be until spring when they can increase production again at the earliest, its not really Ninty's fault just a supply chain issue



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

Thanks for taking the time, Xyrax. I knew the George Harrison one from November, actually started a thread  about it here. In that thread, somebody said he had heard about the 1.8 million at least back in August... No source for that was given. Same for bd's 500k and a lot of other figures that are thrown around.

The source from gamesindustry is a bit fishy because they don't name their interview partner.



Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.

Anyone who thinks Nintendo can just increase production is just plain stupid. For Nintendo to increase production would mean building new factory's to make them, it takes time and money to plan the factory, make sure it meets any laws and then build it. Not too mention additional workers would be needed and they would need to be recruited/trained. Then if they were to increase production to 2.2 million units for example then where would they store those extra 400,000 units they've just made. Storage is important. They might need new warehouses, extra workers and more security. Then has anyone actually though how these extra Wii's would be distributed. Distribution is crucial, Nintendo needs to get it to retailers fast, safely and securely. Huge amounts of money and a massive amount of time would be needed. When Nintendo has this all in place, Wii demand may not be high enough to justify it.



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Avinash_Tyagi said:
Since it takes five months to ramp up it won't be until spring when they can increase production again at the earliest, its not really Ninty's fault just a supply chain issue

 Yep, and in general it's a seasonality issue. If it weren't for that Christmas present mania, every kid could get their Wii for their birthdays and Nintendo could have a super smooth production ramp.



Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.