SJReiter said: Ok, so here's the thing that I think some people are missing is all this. Just because a product 'ceases production' at a certain point, it doesn't mean that all copies of that product immediately vanish from store shelves. I remember reading last year that one reason why Nintendo was so profitable in 2014 was because they didn't have to manufacture any Wii Us that year. Every Wii U sold was produced in 2013. This may not be 100% correct but I remember reading something along those lines. Anyway, I'm pretty certain that even if they cease production of the Wii U by the end of this year, you will still see Wii Us on store shelves well into 2017, probably even into 2018. |
Maaaaybe some into 2017, simply because demand for the system is so low to begin with, but 2018? Nah.
First of all retail space is not finite, retailers are going to want this gone as fast as possible so they can use that space for something that actually sells.
Secondly, I don't know if people know the history of the GameCube but about mid-way through the GameCube's life cycle Nintendo made a grave error in overproducing the system so much so that they had to halt production for several months because of a glut of inventory. This was seen as a big black eye for Iwata's early days as president.
This is also why it was so hard to find Wiis early on, Nintendo underproduced because they were so hurt by what happened with the GameCube that they didn't want that they were overly cautious with the Wii.
People who don't understand finacials also need to understand a glut of unsold inventory is one of the major things investors look at in financial briefings and that can damage the stock price badly.