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Forums - Nintendo - The truth to the Wii shortages?

Tharthesos said:
NJ5 said:
Rugger08 said:
Soriku said:
So why were there shortages at launch? And why games are released last in Europe? Interesting theory, but no dice.

Americans still buy more games than any other country and it is a bigger market to sell games to.


That kind of brings us to the starting square, doesn't it? The essential question is whether Nintendo wants to increase the importance of Europe to their business, which raises questions about why they give America more importance in terms of game releases. If they released games earlier in Europe, they'd sell more consoles in Europe, which (according to the theory) would be their objective.

 


America has a big advantage over Europe in terms of games sold just because of one single reason:

America has a common language for 300 million people: English!

We, in Europe, don't! A game must be translated at least in 5 languages which means more costs for the producer and longer time to get on the market, with less profits!!! If you sum it up with the fact that in Europe gaming isn't spread evenly because of different cultures (France has roughly the same population of Italy, but it's gaming market is 3-4x of Italy's!!!), you have the whole picture!

That said, an hardware manufacturer (in this case Nintendo) has more intrests on selling console where the currency is stronger, but has fewer intrests on putting the games on the sheves there first because of the reason above!

So if Europe, this time around, is more profitabile HW-wise, America still more important for games and the numbers sold there!

Anyway, Pachter has a good point on this subject and if the European market stabilize itself (Japan has already) in the coming weeks we will see if Nintendo re-allocates sources to America, which could lead to a flood of Wii.

In fact, if the numbers of Wiis sold coming from this very site are correct, Nintendo is making 1.8million per month but there's is no sold out as they sell roughly 350-380K Wiis per week WW, leaving as much as 200K Wiis unsold per month, stockpiling somewhere!!!

As a proof of that Nintendo stated that 24.5M are going to be on the market by the end of fiscal year (which is on the 31st of March, just few days away), but as you can see as of now, only 23M Wii's where sold.

So where are those Wiis?? Sitting on European shelves?? If it is so and if the demand is so high in the USA, why not to reallocate that "missing" 1.5M Wiis in the USA??

Don't you have the minimum suspect that Pachter is right and Nintendo prefere not to sell them immediately, but save them for better times, when USA currency is in better shape?


was this information a fat or another april fools joke? if not the any proof? if so then please, enlighten me. and you never know, wii might sell 1.45 million wii's this week.



the nintendo wii will outsell the ps3 and the 360 combined by the end of 2008.                           

        PS3 will out sell the 360 june 2010.                                                                      

  GOTY of 2008 is super smash brothers brawl.... hopefully.

END OF 08 PREDICTIONS:

Wii: 45 million         xbox360: 26 million       PS3: 19 million (made beginning of 08)

wii: 44 million         xbox 360: 24 million      PS3: 21 million (made june 08)

wii code: 8094-5344-2140-1400

brawl code: 5412-9565-3232   

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ookaze said:
Rugger08 said:

Sometimes I wonder if you even have a brain. Nintendo aren't idiots so they sell the consoles where they make the most profit, which is Europe and Japan. They can't completely neglect America because it is still their biggest market and in a year or two the American dollar will recover and change the situation. But for now, Nintendo will obviously make sure demand is met in Europe before it bothers with meeting demand in America.

I don 't know what the hell you are trying to say about consoles at launch. It makes no sense because that was a year and a half ago and the dollar was much stronger back then when compared to the Euro.


So Nintendo sell Wii mostly in Europe and Japan, yet still they sold more in the USA?

 If you looked at my numbers above, the allocation of consoles from GC generation to Wii generation for America has gone down from 59% to 43%. This information combined with the fact that there are Wiis sitting on the shelf in Europe but none in America makes an intelligent human being to jump to the conclusion that Nintendo is interested in meeting demand in Europe and Japan before meeting demand in America. A likely explination for this is our currency devaluation compared to the rest of the world. 

Next time, try to make sense.

So NA is their biggest market, yet they sold more DS in Japan and Europe than in NA, well that makes sense too.

This thread is about the Wii shortages, not the DS. The handheld market is very different from the console market. As far as I know the DS doesn't have shortages except during the holidays.

Supply exceeded demand in Europe and Japan a long time ago, and yet, not in NA.

This comment of yours actually supports my arguments.

 

Believing the dollar will recover in 1 year or 2 would be surprising, with the recession and the crisis coming with it soon. At Wii launch, the Euro currency was already far more powerful than the dollar, so what you say is even more insane.

Most recessions only last 2 or 3 quarters(6 to 9 months), which means that it is very likely that the recession will be over by the end of the year. My argument is that our dollar is MORE weak against the Euro than at launch. I never said the Euro wasn't already stronger than the dollar at launch. Besides, Nintendo couldn't completely neglect America during launch or else they would look bad.

 

The simple fact is that Wii sells at unprecedented rates, which is not hard to understand, or so I thought.


 



NJ5 said:

@Tharthesos:

As some people have said, this looks correct on the surface but doesn't hold much water on closer inspection:

1- it doesn't explain why the Wii has been sold out in America every single week since launch, even when it wasn't sold out anywhere else.

2- Software sales are tied to hardware sales, and, according to this currency theory, they're also more interesting for Nintendo in Europe, since games cost 50 € which is more than $50 even accounting for taxes. If hardware sales are so important for their profit, why don't they launch games such as SSBB earlier? I don't even mean earlier than in USA, just not months later than in USA.

3- Otherwise, if as you said software sales are more profitable in USA, to sell software you need to sell hardware first, and software is certainly more profitable than hardware. This also goes against Nintendo making America suffer from a shortage of Wiis.

The bottom line is that this explanation is at best insufficient, and at worst totally incongruent with reality. Better than typical Pachter, but still not very good.

The simple and IMO correct explanation for the shortages is that Wii demand is higher than expected everywhere in the world, especially so in America. This means that unless production is increased, there's no way supply will be enough in America.

PS: I don't think the stockpiling has anything to do with currencies. It has to do with the necessity of Wiis for the Chinese/Korean launch, Wii Fit launch, holiday season. In other words, the reason for stockpiling is the same as last year's plus the Asian launches.

 


1) Yes it does explain why the Wii has been sold out every week since launch. Nintendo isn't as interested in meeting demand in America as it is in Europe and Japan. What other reasonable explination is there for Wiis sitting on the shelf in Europe and Japan, but not in America?

2 and 3)  I really like Tharthesos' explination for this. In general Nintendo releases a game in Japan first, translates it into English and releases it in America, then has to translate the game into Spanish, French, German and Italian before they can release it in Europe. Unless ofcourse they wanted to have several release dates in Europe for the different countries as they finish translating each language. This argument is very logical. 

Notice how Nintendo releases Brawl in Japan then about a month later they release it in America then several months later they release it in Europe. It takes a lot longer to translate the game into 4 new languages than it takes to translate it into just one language. 



"Second class costumers" sounds a bit harsh.
but hey, Nintendo is a business not a charity, they sell where the buck is, don't doubt for a second that Nintendo, Sony or Microsoft would completely stop selling their machines anywhere in the world if it meant losing money in the short, medium and long term after all they are there to make money.
Now in all seriousness, it is ridiculous to believe that only that is to be held accountable for the shortage in America, there are 10 000 000 million reasons why it is ridiculous (10 024 705 actually)
The Wii sells like candy, and it doesn't help that there are other kids willing to pay more for the same stuff.



Listen to the voice of reason, then do as I say.

No one wants to sell to us cause we finally realized that we got to sell something back to them.



Love is whats most important.

 

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misterd said:
They still weren't making enough to meet demand. If they were, there wouldn't have been any shortages anywhere, let alone for 15 months, and they wouldn't have to decide to prioritize one territory over another. A Wii collecting dust in any territory costs them money, no matter monetary rates. What this means is simply that the US will be the last of the 3 territories to have it's needs met.

Look at it this way - the dollar/Euro/Yen differential any different for Microsoft or Sony than it is for Nintendo? Of course not! And with more expensive consoles, they'd likely be even more sensitive to the inequality, so they'd be even more likely to overship to the other territories. But have there been sustained shortages of either 360s or PS3s in the last 15 months? No. Just a short blip - maybe a month- for the 360.

This is the best explaination as to why Pachter's explaination doesn't account for the whole story.  The weak dollar may be why Europe is being prioritized, but there still are not enough Wii's being produced by Nintendo to satisfy the demand in America.  I would expect that Wiis will be hard to find in America until early 2009.



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I would say another reason for the shortage in America is it increases the demand, thus sell even more Wii in the long run. American wants what they can't have which is one reason why so many Americans are in debt up to their eyeballs.



It basically means that for early 2008 they were able to choose between satisfying demand for NA or for Europe, and since they make more profit on PAL systems they sent them there and left NA to its continuing shortages. And if there's now enough systems in Europe, NA may be getting a boost to its supply soon.

It's actually perfectly logical though not necessarily true. :p