[Source Kotaku]

 

What Wii Hype Shortage Ploy? Huh?

Nintendo uses forced shortages to create hype? Oh, that's rich. Why would Nintendo ever do that? Points out Nintendo's Dervin Camden:

The fact is that we have put far more product on store shelves worldwide than our competitors. The difference is that in a very short time we have far outpaced their total sales... There is no benefit to Nintendo in not having enough product on the shelves to allow everyone who wants one to be able to buy one, which begs the question, 'Why don't you just make more?' Please understand that the Wii console is a complex electronic device featuring one-of-a-kind components from different suppliers around the world. Many things factor into our being able to effectively increase assembly and shipment of a product without compromising quality control.

Exactly. I mean, if the Wii was hard to get and the demand for it was huge, why would that ever benefit Nintendo?
Wii Shortage Is No Hype [GameRush via Infendo]

 

I'd believe in the forced shortage theory if because of supply constaint if Nintendo was trying to charge more for Wii since it's in short supply but that ain't the case so there's no forced shortages.

The only benefit for Nintendo is no price cut any time soon.

Of course there's no benefit of forced shortages when they know the demand is there./sarcasm

So that would mean the constant fluctuations in NA and stockpiling for 1st party games to coincide with that demand are not the same as forced shortages?

*bleu-ocelot* said: Of course there's no benefit of forced shortages when they know the demand is there./sarcasm So that would mean the constant fluctuations in NA and stockpiling for 1st party games to coincide with that demand are not the same as forced shortages?

No they aren't the same. Besides, they supply the rest of the world sufficiently (most of the time), so there goes your theory. Another thing to consider in greater supply with big game launches, along with stockpiling, is diverted supply from other regions. It may not be visible in sales numbers, because channel has stock. But not to divert supply with game launches would be stupidity. Anyway, if they didn't stockpile any, that would cause even more supply constraints in cases where the demand is higher (big game launches, christmas etc.).

How can it possibly have a *forced* shortage when it has shipped far more in any 12 month period than either competitor? And why should it do so when (and continue to do so) when it is clear the demand is now self-perpetuating, and each console "hoarded" is $50 or profit they don't get?

I tend to find that people who don't grasp supply and demand solidly are the ones who protest the loudest to the everlasting Wii shortage. Well, them and the ones who are still looking for a system. Back in the late 1980s, the same hate was poured on Nintendo over the NES shortages, which Nintendo reported was because of there not being enough of a certain chip the system used to produce more per month than they were already. People cried out that Nintendo was lying, purposely keeping supply low, even though they weren't doing anything in their tactics to reinforce this belief. Oh history, how you repeat yourself so...

bdbdbd said: *bleu-ocelot* said: Of course there's no benefit of forced shortages when they know the demand is there./sarcasm So that would mean the constant fluctuations in NA and stockpiling for 1st party games to coincide with that demand are not the same as forced shortages? No they aren't the same. Besides, they supply the rest of the world sufficiently (most of the time), so there goes your theory. Another thing to consider in greater supply with big game launches, along with stockpiling, is diverted supply from other regions. It may not be visible in sales numbers, because channel has stock. But not to divert supply with game launches would be stupidity. Anyway, if they didn't stockpile any, that would cause even more supply constraints in cases where the demand is higher (big game launches, christmas etc.).

So if thats the case sales should taper off and only be affected by major software releases or the granted holiday season.

misterd said: How can it possibly have a *forced* shortage when it has shipped far more in any 12 month period than either competitor? And why should it do so when (and continue to do so) when it is clear the demand is now self-perpetuating, and each console "hoarded" is $50 or profit they don't get?

People probably think that Nintendo's only way to keep up the strong sales especially after WiiFit and SSMBB(others)releases is to force shortages so that people think there is demand when there is none.

Another thing people easily forget is that Nintendo is not a resource-rich company; they're capital-rich, and there is a difference. They outsource all final hardware construction to other firms. They've always done it that way, in fact. So do Sony and MS, but not to the degree that Nintendo does. Any bottleneck on any of their supply side is reflected in a limit to how much they can produce. On top of that, the Wii has entirely unprecedented demand; even the PS2 wasn't this sought after, and the PS2 experienced shortages for almost a solid year in America after its launch there.