| NJ5 said: The important question is, do you think that Nintendo is still producing 1.8 million Wiis per month, or that they have increased production again in the meantime? 1.8 million per month gives around 414k units per week, will Wii sales drop to that level soon? |
Nintendo may have pushed hard to get units in its shipment pipeline into stores, which could account for at least a week or two of sales. If this was the case, they may let the pipeline settle back to its previous state and sales could literally dip below production levels. Let's hope that isn't the case.
Keeping in mind that it takes Nintendo five months to increase production from the point where they decide to increase production, I think we'll see them treat 2008 fairly conservatively. While it is clear that the Wii is in much higher demand than the DS was at the same point in its life, we have seen Wii demand slack a little bit in Japan and even Europe before the holiday rush began.
Nintendo will probably observe the Wii sales during the first quarter before deciding whether or not to significantly increase production. And if they do increase production, I would expect an increase to 2.3-2.5 million units per month, probably starting in August/September again. Even if demand slacks a little bit, Nintendo would be in a prime position to ride that production level for at least 6 months because those units *will* sell during the holiday season and Nintendo could absorb having some stockpile of Wiis (which seems very preferable to having too few to sell).