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Forums - Sales - Nintendo Screwing Up: The production claim

@ koffieboon

You're right, it's currently out of stock, but you really need to get a life. It was a simple mistake, no need to be impolite. Were you unable to buy a Wii or something?



Naughty Dog: "At Naughty Dog, we're pretty sure we should be able to see leaps between games on the PS3 that are even bigger than they were on the PS2."

PS3 vs 360 sales

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Louie said:
Faxanadu said:
sooo....some here claim Nintendo is following a big masterplan with this? Kind of like: a yes, this week, we just ship 180K and the next we ship 400K and then just for fun 240K and then maybe, um, i feel like 176.8 K.

I would love to understand how this is presumably working. any ideas?

No, certainly not but Nintendo ships more if retailers demand it. That´s how supply works. Sometimes they get more consoles out, sometimes not. Additionally some retailers stockpile for big games - take Brawl as an example, America sales have been less than 100k units for some weeks now and they know they´ll sell out completely if they place every shipped Wii on the shelfs, so they stockpile themselves because they want big software titles to sell well - software sells hardware, but only if there is some hardware left. You could argue a lot of people would buy a Wii for Brawl and shops don´t want to lose those additonal sales because there are no consoles left.


 1. I see retailers clamouring, even begging Nintendo constantly for supplies. Constantly. Every day of the week. Cause they know they will sell out.

2. If Nintendo even spends one dollar on warehousing a wii that they could have sold no problem within the day, I hope shareholders fire every single nintendo exec because they are wasting money. 



Any message from Faxanadu is written in good faith but shall neither be binding nor construed as constituting a commitment by Faxanadu except where provided for in a written agreement signed by an authorized representative of Faxanadu. This message is intended for the use of the forum members only.

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Faxanadu said:
Louie said:
 


1. I see retailers clamouring, even begging Nintendo constantly for supplies. Constantly. Every day of the week. Cause they know they will sell out.

2. If Nintendo even spends one dollar on warehousing a wii that they could have sold no problem within the day, I hope shareholders fire every single nintendo exec because they are wasting money.


Vgchartz 2007 called, it wants its argument back. Do you seriously think that Nintendo stockpiles consoles out of whim? The reasons for stockpiling are plenty and have been discussed countless times here.

 



My Mario Kart Wii friend code: 2707-1866-0957

Faxanadu said:
Louie said:
 

 


1. I see retailers clamouring, even begging Nintendo constantly for supplies. Constantly. Every day of the week. Cause they know they will sell out.

2. If Nintendo even spends one dollar on warehousing a wii that they could have sold no problem within the day, I hope shareholders fire every single nintendo exec because they are wasting money.


1. Which is exactly the reason numbers vary: Nintendo doesn´t ship the same amount of units every week and sometimes shipments are bigger, sometimes not. And believe me what I said about shops stockpiling is true.

2. That´s why you are not in such a position - stockpiling may be expensive (relatively at least) but profits during christmas periods make more than up for it and as I said, software only sells to new consumers if hardware is available. shareholders would kill those execs you mentioned if they wouldn´t put out a lot of hardware during big releases. By the way, a lot of companies do stockpile - do you think the Playstation 2 would´ve sold 2.5 million units during Christmas in the US alone if neither Sony nor retailers did stockpile?



for #2: yeah, i love how the guys that could have bought the system now did not buy software until christmas as they didnt have the system. you think they will buy all the games they would have played in the next 9 months?



Any message from Faxanadu is written in good faith but shall neither be binding nor construed as constituting a commitment by Faxanadu except where provided for in a written agreement signed by an authorized representative of Faxanadu. This message is intended for the use of the forum members only.

The views expressed here may be personal and/or offensive and are not necessarily the views of Faxanadu.

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MikeB said:
@ koffieboon

You're right, it's currently out of stock, but you really need to get a life. It was a simple mistake, no need to be impolite. Were you unable to buy a Wii or something?

I need to get a life? And you call me impolite? You made these availability claims before and almost everytime I actually checked them I found them to be incorrect, at least at the moment I looked. So I feel you are making too many statements without checking them for accuracy. And when that happens too many times you stand a chance of being accused of lying. Maybe that word is a bit harsh, but it might help your credibility if you check things before making certain claims, as well as being careful to make general claims (like "it is easily available in The Netherlands" versus "it is available in the part of The Netherlands where I live")



koffieboon said:
MikeB said:
The Wii is easy to get here in the Netherlands (for example otto.nl, 24 hours delivery). Technically the Wii should be very easy to produce en masse and sales are very profitable.

Having said that I think the Wii will have an overall good year, Mario Kart will soon boost sales and there's more than enough room for a price cut. For 2009 I am far less optimistic although I think the Wii will probably still outsell the 360.

How come you always claim it is easily available in the Netherlands while I experience exactly the opposite for 3 months in a row now. I think I only saw them in stock once or twice since December, and the last time it was in a bundle.

Btw, if you check the status at Otto.nl it says it is sold out at the moment.


I occasionally see a Wii in store here in Holland, but most of the time they're gone. Plus a lot of stores still have signs that say something like "We appologize for Wii's being out of stock, we don't know when we'll receive new shipment".

So it is not as crazy as in the States, but definitely not easy to get either.



don't look at sold, but shipped...

20mil shipped as of 12/31
24mil+ shipped as of 3/31

1.8*3=5.4mil produced during the period

so if they only just hit target, then almost 1.4mil stockpiled (not quite as wiis produced last few days of april may not ship immediately)

i think they will hit a little above target and have around 1 mil in stock...they will then report that they exceeded target and will up production and sell even more in fy2008

this will please stockholders and they will already have a 1mil headstart on 2008 numbers

they will use up most/all stockpile in april/may for mk/wii fit

they especially want stock for wii fit, as it will sell to new consumers and they want people that wanna buy it for fitness after seeing it on oprah to have better shot at getting one



Bets:Missed by 420k I bet leo-j vg$500 that wii will sell 31 million by 7/31/08.  Sorry, I don't think he has enough vg$ to make it with all of u that wish you could. Hit, with room to spare I bet kingofwale a 1-week ban that wii Americas ltd sales>360 Americas ltd sales as of the numbers for week ending 7/05/08 (using vgchartz homepage #s)

Predictions:

Wii will sell 18-20mil by 12/31/07  CHECKWii will sell 45mil+ WW by 12/31/08Wii will surpass PS2 sales WW by 11/17/11 (5yr anniversary)Wii Fit will hit 12mil sales in 2009MKWii+SSBB+Wii Fit+SMG > 50 mil sales by 2010 > gta4+mgs+gt5+ff13+haze+lbp
Faxanadu said:
for #2: yeah, i love how the guys that could have bought the system now did not buy software until christmas as they didnt have the system. you think they will buy all the games they would have played in the next 9 months?

Oh great, I love this kind of arguing. I want to discuss the topic. Do you want a discussion or do you only try to prove your point?

First of all, if Nintendo/ shops didn´t stockpile any units you would´ve seen 600k units in the Americas during December 2007. Do you agree that really is a bad number? And do you agree people buy more games during December then during June because it is Christmas? Additionally, bad press during christmas would pretty much kill Nintendo´s good name and more games are released during Christmas. Videogames are like movies: You play them when they are released but you don´t buy most of them after 6 months because they got old. That means your game will sell better when enough hardware is sold at the same time.

Good supply + no games + slow period of time =great hardware sales, bad software sales

Good supply + a lot of games + christmas = Great software and hardware sales

Bad supply + a lot of new games + Christmas = bad hardware and bad software sales ---> the worst scenario you could think of.

Bad supply + a lot of new games + slow period = great software sales but bad hardware sales (additonally software sales would be higher if supply was big in this case) 

 

It´s not like Wii demand is infinite, Nintendo still has to get the best results possible out of the shortages.



Aint most Wii's produced in China, and didnt China have a holiday recently called New Years, i think that would affect stock a bit in Feb as i doubt with a factory closed for a few days they are gonna produce the same number as if it was open for this time.