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Forums - Sales - Stockpiling - The Debate is Over

omgwtfbbq said:
Avinash_Tyagi said:
How do you know they didn't up production?
because it is impossible to up production from 1.8 million to 4.5 million in a single month, and then drop it back down to 1.8 million again.

 


 Never said they upped it to 4.5 million, but I do notice a bit of discrepancy



 

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)

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@avinash
I think not including Q1 is the cause of the discrepency (as SQRL sort of notes). IIRC production was around 1.2 million a month and sales were 1-1.1 million but I'm too lazy to look it up at the moment. If that's not the cause then I would suspect Nintendo has slightly increased production again to around 1.9-2 million with the 1.8 million for August being true, for August. Or as a third option, VGChartz is off by less than 5%.

@SQRL
Great post as usual. I still can't believe that there are so many people who can't believe that Nintendo was stockpiling for the holidays.



Avinash_Tyagi said:
Sqrl said:

IIRC their production numbers were in their quarterly reports which would mean that they cannot (legally) lie about them. But for further evidence you only need to consider Nintendo's long history of conservative decision making and it quickly becomes clear what happened.

That and well, its sort of hard to hide the fact that you are upping production without people noticing, it is not a small scale effort.

edit: Also Reggie stated it takes them 5 months to up production, if they started the process again at the end of August it would likely be at least 3 months before any extra production started showing up so Sep, Oct, and Nov would be the same with December showing maybe an extra 100k total? So that seems highly unlikely especially since they wouldn't have had any time to assess their most recent increase at that point...I just don't think they would up production again without seeing what their most recent changes have done first.

But still an excellent question and a point worth covering.


See the thing is according to the data you supplied since August they had 2.3 million set aside, adding in the 1.8 million for december and you end up with 4.1, much less than the 4.58 they sold in December, now couldn't they have shifted from earlier months you say, unlikely since if you look at VGC numbers they sold 16.24 this year take away 10.6 for July through Decmber according to the data you supplied and you are left with 5.64 million, yet according to VGC the figure for sales is 5,968,442 until the first of July, so they wouldn't have had any supply availible to shift from other months

 

 



July - 1.12m (extra: unknown)
Aug - 1.07m (extra: 0.73m)
Sep - 1.16m (extra: 0.64m)
Oct - 1.02m (extra: 0.78m)
Nov - 1.65m (extra: 0.15m)

Total Extra So Far: 2.3m

Dec - 4.58m (extra: -2.78m)

Ok I think that is the numbers you are looking at (posting it for clarity), but what I don't get is how you think the extra 2.78m units were sold in Decemeber if not through stockpiling?  The only way they didn't stockpile units is if production for december was actually at least at 4.3m or so.

I am trying to understand your point but you need to be a bit more clear please.  What, precisely, is your theory for where ALL of the extra units came from?  

 

 



To Each Man, Responsibility

Great post Sqrl, first off.

 

Though everyone with half a brain knew they were stockpiling, the question is, why were they saying they didnt have enough Wii's to meet demand months ago when they were sitting on Mountains of Wii's. Shorting the supply to create demand, create enough demand to get free publicity and then flood the market during Christmas Season to post amazing numbers.

 

Of course I'll just be flamed for saying that, but at least half of you are thinking it. Really if you take a step back and think of the company involved as.. say Ford, I doubt you would think twice about it. But since its your precious Nintendo... Well thats a different story.

 

 



I don't see stock pilling. Not, that I would think negative on Nintendo if they did.

THe only region where Wii was always sold out was NA. Europe had many reports as early as March that there was stock sitting in stores. Japan as early as July/August. So, the 'extra' is clearly units that were shifted from these areas to help NA.

That combined with a probably faster shipping process in Nov/Dec, which will lead to far less being sold in Jan, all contributed to what you see as an anomaly.



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I don't really care about all this. If Nintendo stockpiled, that's good for them...it's better to sell more during the holidays, when parents all want to buy Wiis, and when press matters. And if Nintendo didn't stockpile, well then damn they pulled an extra 3 million consoles out of a hat.



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Sqrl said:
Avinash_Tyagi said:
Sqrl said:

IIRC their production numbers were in their quarterly reports which would mean that they cannot (legally) lie about them. But for further evidence you only need to consider Nintendo's long history of conservative decision making and it quickly becomes clear what happened.

That and well, its sort of hard to hide the fact that you are upping production without people noticing, it is not a small scale effort.

edit: Also Reggie stated it takes them 5 months to up production, if they started the process again at the end of August it would likely be at least 3 months before any extra production started showing up so Sep, Oct, and Nov would be the same with December showing maybe an extra 100k total? So that seems highly unlikely especially since they wouldn't have had any time to assess their most recent increase at that point...I just don't think they would up production again without seeing what their most recent changes have done first.

But still an excellent question and a point worth covering.


See the thing is according to the data you supplied since August they had 2.3 million set aside, adding in the 1.8 million for december and you end up with 4.1, much less than the 4.58 they sold in December, now couldn't they have shifted from earlier months you say, unlikely since if you look at VGC numbers they sold 16.24 this year take away 10.6 for July through Decmber according to the data you supplied and you are left with 5.64 million, yet according to VGC the figure for sales is 5,968,442 until the first of July, so they wouldn't have had any supply availible to shift from other months

 

 



July - 1.12m (extra: unknown)
Aug - 1.07m (extra: 0.73m)
Sep - 1.16m (extra: 0.64m)
Oct - 1.02m (extra: 0.78m)
Nov - 1.65m (extra: 0.15m)

Total Extra So Far: 2.3m

Dec - 4.58m (extra: -2.78m)

Ok I think that is the numbers you are looking at (posting it for clarity), but what I don't get is how you think the extra 2.78m units were sold in Decemeber if not through stockpiling?  The only way they didn't stockpile units is if production for december was actually at least at 4.3m or so.

I am trying to understand your point but you need to be a bit more clear please.  What, precisely, is your theory for where ALL of the extra units came from?  

 

 


Actually its 2.28 not 2.78, 4.58-2.3 is 2.28

 

Also its cool, I just checked on what Albonius said ,and he's right from April to July it was at 1.2 million up from 1 million earlier in the year, that was where the discrepancy I was noticing was coming from, that extra 800K of production



 

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)

superchunk said:
I don't see stock pilling. Not, that I would think negative on Nintendo if they did.

THe only region where Wii was always sold out was NA. Europe had many reports as early as March that there was stock sitting in stores. Japan as early as July/August. So, the 'extra' is clearly units that were shifted from these areas to help NA.

That combined with a probably faster shipping process in Nov/Dec, which will lead to far less being sold in Jan, all contributed to what you see as an anomaly.

You do realise that consoles are region locked and it requires them to individually have be fixed in order to re-allocate them to a different region. This process cost time and money and its far easier to allow the stock that is already shipped to stay where it is and adjust your production ratios for the future.

With that said, the production numbers are global and no matter how much shuffling you do you cannot sell more than you have produced. Aside from that, stock only became readily available in a small number of EU countries and in Japan during the year. Now, when you consider that most EU countries only do about 10k on average per week those kinds of numbers simply do not add up to the amount of missing units we are talking about, even if you add in Japan. The major Wii stronghold in "Others" is the UK and it has continued to sell out before new shipments arrive all along. The UK also accounts for nearly 34% of Total Others sales for the Wii in 2007 all by itself.

But I also have to point out that if they were re-allocating units from Europe and Japan it wouldn't take months and months for them to arrive in the US. If they were being sent in March & July/August they should have arrived well before decemeber...which means they were still stockpiled anyways.

I don't want to dismiss anyone out of hand but I really don't find your scenario very plausible on its own. Now perhaps your theory could work as a supplementary re-allocation of units to assist in meeting demand but there would still need to be stockpiling in a major way to make these kinds of units available.



To Each Man, Responsibility
Avinash_Tyagi said:

Actually its 2.28 not 2.78, 4.58-2.3 is 2.28

 

Also its cool, I just checked on what Albonius said ,and he's right from April to July it was at 1.2 million up from 1 million earlier in the year, that was where the discrepancy I was noticing was coming from, that extra 800K of production


 Bleh, brain-fart moment, my mistake.



To Each Man, Responsibility
catprog said:
Avinash_Tyagi said:
DKII said:
Because they said production was at 1.8M a month and wouldn't be looking at upping it further until after the holiday season was over.

Yeah, they said that, but did they stick to it? They also said they weren't stockpiling and yet people are so ready to dismiss that


Didn't they say that they were not stockpiling to increase demand?


Yes.  Reggie also said that NOA (America) didn't have a huge warehouse full of Wiis for the holidays (which doesn't mean Nintendo, as a whole, wasn't saving them up for bigger shipments to the States).  Nintendo's statements are always carefully worded; they don't want to outright lie, but they do want to create the most favorable impression possible, so they tiptoe right up to the line.