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Forums - Sales - Prediction Wii 40 million end of 2008

NJ5 said:
TWRoO said:
NJ5 said:

Maybe we're not understanding each other, because I don't think it's as complicated as that.

My assumption is that at new year's midnight, their Wii warehouse is empty. Any units manufactured before have been shipped. Any error in this assumption will cancel out if we assume they have the same strategy for both years (i.e. non-shipped units from 2007 get added to 2008 but the same number is subtracted later).

With that assumption:

At the end of 2007 all produced units are counted as shipped. The same thing would be true for the end of 2008. The difference between those two numbers is what was produced in 2008, not more and not less.

 

Except that it isn't true.... by adding up the months of production it shows they do not and cannot clear everything out.

I dunno if you checked my old thread, but I have posted the table in other threads since.... by the end of 2007 Nintendo should have produced close to 21.9 million (give or take 200k) yet they could only ship 20.13..... so a whole months worth of production wasn't shipped until 2008.

I think I saw that thread, but I don't remember what the assumptions were there. If you're right, the error in my method would not amount to more than 0.6 million units, as that's the non-cancelled-out difference that I mention in the second paragraph of the post you just quoted (i.e. the monthly production boost).

Regarding your alternative method of working backwards from Nintendo's estimate for the fiscal year, it wouldn't surprise me if that has the same or bigger error, as they are usually conservative in their shipment forecasts.

In any case, this debate we're having is almost academic. We've had atleast three different calculation methods presented in this thread which result in the same ~45m figure; mine, yours and Sqrl's. It seems that that's the benchmark for Wii's sales at the end of 2008 (whether shipped or sold probably doesn't make a big difference so let's ignore that here).

Nintendo could still surprise us with an extra boost in production for the holiday season, but other than that 45 million seems like a good estimate.

 

 

I'll probably piss some folks off by saying this but I think the Wii is the most likely to see an increase in sales over the next few months. I'm pretty confident production is still on the rise even if they aren't being vocal about it (but when are they vocal about anything?).

Even so an extra 300k units per month would only be another ~2 million units by year end so we aren't going to see any major shifts.

Let me just say this, I'll be very surprised if the final number isn't between 43M and 46M. Because for it to be outside that range something major will have to happen.



To Each Man, Responsibility
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Sqrl said:

 

I'll probably piss some folks off by saying this but I think the Wii is the most likely to see an increase in sales over the next few months. I'm pretty confident production is still on the rise even if they aren't being vocal about it (but when are they vocal about anything?).

Even so an extra 300k units per month would only be another ~2 million units by year end so we aren't going to see any major shifts.

Let me just say this, I'll be very surprised if the final number isn't between 43M and 46M. Because for it to be outside that range something major will have to happen.

 

An increase in sales over the next few months is almost certain, since a production increase was already announced (unless we assume that increase will only go towards holidays supply, which I don't think is the case). Did you mean "even a bigger increase than the production increase would lead us to expect"?

 



My Mario Kart Wii friend code: 2707-1866-0957

NJ5 said:
Sqrl said:

 

I'll probably piss some folks off by saying this but I think the Wii is the most likely to see an increase in sales over the next few months. I'm pretty confident production is still on the rise even if they aren't being vocal about it (but when are they vocal about anything?).

Even so an extra 300k units per month would only be another ~2 million units by year end so we aren't going to see any major shifts.

Let me just say this, I'll be very surprised if the final number isn't between 43M and 46M. Because for it to be outside that range something major will have to happen.

 

An increase in sales over the next few months is almost certain, since a production increase was already announced (unless we assume that increase will only go towards holidays supply, which I don't think is the case). Did you mean "even a bigger increase than the production increase would lead us to expect"?

 

 

Well by most calculations they either are already at 2.3m or will be there by the end of August. Now, the last 3 months of Wii sales have averaged 1.57m units, which is less than even the previously assumed production rate of 1.8M, and the estimated current production rate of 2.1M. Since I'm not willing to buy that they are lying about the production rates I can only assume they are stockpiling.

With that said, my year end sales estimate from earlier was for  "sold to consumer" and it did include a gradual build-up as I do expect sales to increase as they complete their production rate increases. The thing is I don't think all of the increase is going towards shipments, but stockpiling as well. As my estimate points out I think they are going to sell over 10 million units during this holiday, so in a period that they would normally only have 4.6M units produced they are going to need a LOT of stockpiling help if they have any hope to keep up with it.

If they aren't stockpiling units right now then I don't know wth is going on, but it certainly makes plenty of sense to stockpile imo.



To Each Man, Responsibility
Sqrl said:

 

Well by most calculations they either are already at 2.3m or will be there by the end of August. Now, the last 3 months of Wii sales have averaged 1.57m units, which is less than even the previously assumed production rate of 1.8M, and the estimated current production rate of 2.1M. Since I'm not willing to buy that they are lying about the production rates I can only assume they are stockpiling.

With that said, my year end sales estimate from earlier was for "sold to consumer" and it did include a gradual build-up as I do expect sales to increase as they complete their production rate increases. The thing is I don't think all of the increase is going towards shipments, but stockpiling as well. As my estimate points out I think they are going to sell over 10 million units during this holiday, so in a period that they would normally only have 4.6M units produced they are going to need a LOT of stockpiling help if they have any hope to keep up with it.

If they aren't stockpiling units right now then I don't know wth is going on, but it certainly makes plenty of sense to stockpile imo.

 

They are stockpiling for sure, after last year's patterns and 2008 sales so far there's no question in my mind about that...

Like you, I think the new production increase to 2.4 million/month will result in both things - faster stockpiling for the holidays and more sales outside the holidays.

I think a gradual increase in sales will be seen in September at the latest, end of July at the earliest.

 



My Mario Kart Wii friend code: 2707-1866-0957

NJ5 said:
TWRoO said:
NJ5 said:

Maybe we're not understanding each other, because I don't think it's as complicated as that.

My assumption is that at new year's midnight, their Wii warehouse is empty. Any units manufactured before have been shipped. Any error in this assumption will cancel out if we assume they have the same strategy for both years (i.e. non-shipped units from 2007 get added to 2008 but the same number is subtracted later).

With that assumption:

At the end of 2007 all produced units are counted as shipped. The same thing would be true for the end of 2008. The difference between those two numbers is what was produced in 2008, not more and not less.

 

Except that it isn't true.... by adding up the months of production it shows they do not and cannot clear everything out.

I dunno if you checked my old thread, but I have posted the table in other threads since.... by the end of 2007 Nintendo should have produced close to 21.9 million (give or take 200k) yet they could only ship 20.13..... so a whole months worth of production wasn't shipped until 2008.

I think I saw that thread, but I don't remember what the assumptions were there. If you're right, the error in my method would not amount to more than 0.6 million units, as that's the non-cancelled-out difference that I mention in the second paragraph of the post you just quoted (i.e. the monthly production boost).

Regarding your alternative method of working backwards from Nintendo's estimate for the fiscal year, it wouldn't surprise me if that has the same or bigger error, as they are usually conservative in their shipment forecasts.

In any case, this debate we're having is almost academic. We've had atleast three different calculation methods presented in this thread which result in the same ~45m figure; mine, yours and Sqrl's. It seems that that's the benchmark for Wii's sales at the end of 2008 (whether shipped or sold probably doesn't make a big difference so let's ignore that here).

Nintendo could still surprise us with an extra boost in production for the holiday season, but other than that 45 million seems like a good estimate.

 

I was just saying that it's the wrong way of working it out... you shouldn't mix the a shipment figure with a production figure unless you know how long it takes between the two...(which is when I do it I am very vague in adding about 1.5 months on) Yes it may come out similar but it could have gone very wrong without noticing.

What if Nintendo had made a massive increase in production from 1 million to 3 million/month? then it could have been really off.

I am not arguing against the point of your post (to prove that the Wii shipments will likely be so far above 40 million that the prediction in the OP is quite conservative)


Edit... I agree with the posts after this one, I think there is going to be a lot of Wii sales soon, I expected them to announce a shipment figure just over 30 million for the end of the quarter, but VGC sales seem a little low for that, either VGC is low, shelf stock is higher than before or Nintendo is holding back a little.



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i really dont see that happening.... maybie if they actually fix the whole stocking issue they still have but it dont think that will happend this year... my guess is 35m



ganondorf7799 said:

I don't think the wii will beat the 40 million by end of 2008, but I think it will be a close race. With very high christmas sales it is maybe possible...! What do you think?

Sorry for my bad English...

 

40m easily, more like 45m if sales stay strong