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Forums - Sales - When the Wii stops being supply constrained, we will have some answers

I don't think the supply is a big problem to know the "total demand" and even if it was, the Wii isn't supply contrained in Japan and Europe



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Honestly analyzing the demand is simple, its probably larger than the current shipments. If it wasn't then supply would catch up and we would know.

This is obviously not a precise number due to the lag of supply catching up but it gives a good enough ballpark.




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If they were like butter and margarine then I would predict a Malthusian end for video games.


Nintendo Wii supply constraints is all conspired by Nintendo to boost the demand for the Wii.

Weekly sales for the Wii go up and down like a yo-yo. One week 400k, the next 250k, the following 450k and so on. 



It's an evil plot, shipping more than any other console in history. How dare they?



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We have some partial answers as it is. At current prices, the demand for the Wii still exceeds the demand for the PS360 (often combined). Do we really need to know just how much more it would sell if not for the supply constraint?



Rock_on_2008 said:

I think the Nintendo Wii supply constraints is all conspired by Nintendo to boost the demand for the Wii.

Weekly sales for the Wii go up and down like a yo-yo. One week 400k, the next 250k, the following 450k and so on. Even though there are other explainations for these oddities I feel this proves my point.


Bolded parts added to make your post reflect that its your opinion and not a fact.

But please feel free to start another thread if you want to have that debate. However all you're doing here is changing the topic, which is of course not appreciated.

Please try to stay on topic.



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FishyJoe said:
It's an evil plot, shipping more than any other console in history. How dare they?

 

+1 Thats the best point made yet. The wii is shipping astronomically fast for this point in it's life. Everyone has got to remember that this system will sell more than Sega Genesis and N64 by the end of the year, and those were systems out for 6 years while wii will have only been out for about 2 by the end of the year!

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Squilliam said:

key economics surrounding the system.

I would say the important measure would be substitution. We can see how much people consider the other systems as a complete picture. For example if the Wii price went down and the sales of the PS3 went down a lot and the sales of the Xbox360 went down a little, we would see that people consider them to be substitutes for one another, like Butter and Margarine.

 


Economists generally analyze product substitution or interchageability by predicting the upward price elasticity of demand i.e. what happens when you increase the price of a product on the market.  You would normally apply a 10% price increase to a product and through empirical evidence obtained by key buyers and the effects of previous price changes determine whether a consumer would when faced with the increase in price substitute to an alternative product. If you take the wii as your starting product and apply a 10% price increase do you think a reasonable number of consumers would substitute their purchase for either a 360 or PS3? If not then to an economist the two products are not substitutes may not even be in the same relevant product market.

 



Well, demand will have to drop for supply constraint to end. They are already shipping over 700,000 consoles a month to the US alone, as we've seen in the NPD numbers.

Therefore, the demand has to be much greater than 700,000 a month, considering how quickly those consoles sell. Probably double.

In other words, if the Wii wasn't supply constrained, NPD would look a whole lot worse for Sony and Microsoft, if you can actually believe that.

Think, 1.4 million Wii's vs 200k PS3 vs 200k 360. That could be possible considering how easily Nintendo sold 700,000 units, with no Wii Fit.



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