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Forums - Sales - Nintendo Screwing Up: The production claim

One of the few flaws in the methodology of this website is that we tend to view things on a weekly basis. Seen from this perspective, Wii sales fluctuate wildly up and down, as you can see on this chart of the past few weeks (America):

http://vgchartz.com/hwcomps.php?cons1=Wii&reg1=America&cons2=PS3&reg2=America&cons3=X360&reg3=America&start=39453&end=39516

This is due to the fact that retailers like to sell Wiis in large numbers at a time; rather than sell a couple each day (as the normal sales pattern would be), they sell 50 or 100 in big biweekly events. That makes the sales LOOK inconsistent and erratic. But let's try to look at things over the past month and a half from a larger perspective:

03 Feb: 93k
10 Feb: 216k
17 Feb: 48k
Three Week Average: (357/3) = 119k/week

24 Feb: 79k
02 Mar: 218k
09 Mar: 70k
Three Week Average: (367/3) = 122k/week

Once you average a few weeks together to remove the supply fluctuations, you see that Nintendo is actually shipping a pretty consistent number on a monthly basis. America is also seeing considerably higher sales in 2008 than in 2007, by the way. When it comes to the Wii, I'd encourage you NOT to think in terms of weekly sales, since they're all over the place. Take a broader perspective, and it will start to make more sense.



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End of 2008 totals: Wii 42m, 360 24m, PS3 18.5m (made Jan. 4, 2008)

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I can't see page 1 of this thread.
However I read the OP by using Faxanadu's post history, so I can still answer (no doubt it has been answered already)

With regards to the Christmas supply situation, I think a lot of the extra supply shipped then was due to faster shipping (by air), which would have meant minimal (less than 1 million) supply in January had they immediately reverted back to slower shipping methods, however January demand was still going to be high due to some unlucky Christmas shoppers, and they also had to try fulfill the ticket things some Americans got (at Gamestop?)... so they still shipped some consoles by air (to Eu/Am. Japan doesn't have such a problem when they are manufactured in China) to help with January, which in turn affected February.

I believe this may be the main reasoning behind the extra delay to Brawl, and will likely end with the release of Brawl... so monthly shipments should be back to 1.8 million (well, almost for March)



I didn't read all of page one, so I'm not sure if anyone pointed this out already. Nintendo's last financial report said they've shipped 14.29 million units so far this fiscal year with a goal of 18.5 million units, leaving 4.21 million units to be shipped throughout January and March. That's about 1.4 million units per month, which is about what they're average was in January and February. It's all but guaranteed that they'll meet their goal, but they aren't likely to exceed it by too much. As in the past they'll likely stockpile(there's that dreaded word again) the extra ~1.2 million units produced to ship in the next fiscal year.



^good point Linkzmax... they might let themselves exceed it by a little though, for the sake of cockiness.

does anyone know why I can't view page 1? The VGC tabs bar loads but everything below remains blank (I'm on Wii Opera but never had this before)



Faxanadu said:
 

Green: I fully agree with you.

Red: see my answer to red above. do you understand the gap in your logic?

Yellow: SSBB, WiiFit, MK Wii, MP3 all say hello. How close to Xmas will they be released? Exactly.

 

@Entroper: You are right. That is the ONLY valid reason. Access to a different customer segment. All other reasons fail.

 

For Louie, Entroper to illustrate my point. A small case:

Data: 60 million wiis, produced before Month 0, case period: 24 months

Assumption: Each console owner buys one game every 3 months but NO MORE, starting at day of purchase. NO games older than 6 months are being bought (as in:; thank you, Louie.)

Assumption: Shipped ALWAYS = sold

Assumption: Xmas at 0, 12 and 24 months

Business Case 1: Sell all 60 million at Month 0. Result after 24 Months: 60 Million consoles sold, 480 million games sold

Business Case 2: Sell 20 million each Xmas. Result after 24 months: 60 million consoles sold, 260 million games sold

Here I stop, even before mentioning the cost of warehouse space....

 


You are a hard one, aren´t you?

Red: Yeah, I see where you are comming from but I´m talking about something different. Let me explain: You don´t know how many games a consumer who owned a console for several months buys in a year. You know for certain, though, that people who will buy a console will buy a game with it - that´s why Nintendo is getting a lot of Wii´s out there everytime big games are released. Usually there is one flagship title and as soon the next one is close to release you can expect people to buy the latest game rather than the old one: SSBB for example is the current lead title in Japan and the US - as soon as Mario Kart Wii hits people will probably buy the console with Mario Kart as it will be the current lead title then - of course both of those titles will see enormous legs, that´s why both of them will sell for a long time. But that´s more a general statement. That´s what I meant: If you buy the console in June you´ll buy title A but Nintendo wants you to buy title B - which is released in July for example. You know what I´m talking about now?

Yellow: Of course not during the Christmas period but we are talking about Nintendo. Just look at any other developer, most games are released during Q4 that´s what it is all about - during Christmas you have so much titles that people who buy the console will probably buy 2 or even 3 games with it because there are so many titles out. Or they will buy only one of them in which case good supply is even more important because you want to attract all groups at once, of course.

What do you think 3rd parties would do if Nintendo didn´t ship many Wii´s during Christmas? Again: 3rd Parties, Shops, Nintendo itself... there are many reasons for stockpiling and it is what all companies do. The market just doesn´t work the way you described it in your example, otherwise shops would never stockpile themselve - isn´t that prove enough for you? I just describe the way the industry works.



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Seeing MikeB get owned so thoroughly made reading this thread worthwhile.

As for the numbers, it's likely one of several things...

1)  The numbers are not accurate.

2)  Production is less than has been quoted in the past.

3)  Distribution has either moved Wiis into slower markets.

4)  Distribution has not moved Wiis (stockpiling).

5)  leo-j hijacked several shipments of Wiis around the time he was unbanned.



ah, now we are talking. I generally agree with your reply to red.

and yellow was just me being a smart ass in any case.



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Oyvoyvoyv said:
Didn't they said that they should have 1.8M by start of fiscal? I thought so. And isn't Fiscal Year at 31st March? Maybe all factories haven't started up or something.

I don't see a lot of other solutions.

 i think your right and im pretty sure nintendo isn't stock piling. there's no need to stock pile cause they're already selling out globally. how can they stock pile for future games when they haven't met the demand for past ones?

i think they're just distributing units to suit release schedules. lately US sales have been a little lower, this most likely has to do with the fact that brawl (and before that wii fit) recently launched in japan. nintendo probably decided to place their focus there for awhile. next, it will be the US with brawl and europe with fit.



There is no telling, but shouldn't you be more pissed at Sony or Microsoft, for allowing Nintendo to easily beat them in sales on a Nintendo offweek, vs a great Sony/MS week?

They don't need to meet demand to win. They just need to meet demand to win as quickly as most of us here would like them too.



I don't need your console war.
It feeds the rich while it buries the poor.
You're power hungry, spinnin' stories, and bein' graphics whores.
I don't need your console war.

NO NO, NO NO NO.

Faxanadu said:
ah, now we are talking. I generally agree with your reply to red.

and yellow was just me being a smart ass in any case.

 Yeah, I noticed that

 

Hell, that´s worth a friend request! Didn´t have such a great discussion in a long time here