Right now, people are only really casually picking it up or looking for it, so it's not really a big deal if it's hard to get. During the holidays, everyone is going to go bonkers trying to find one for Xmas, and if it isn't found it pisses people off even more and they'll go get another system as a substitude.

In summary, stockpiling = some lost software sales now, but also keeps people interested in getting your system in the future so a lot more software in the future. Not stockpiling = lots of pissed off parents come holiday season who will go buy 360's for their kids instead = lots of lost hardware *and* software sales.

Even if Nintendo isn't building up a stockpile of units it would be (highly) likely that they're looking to increase production for August/September to be able to handle increased demand; adding an additional 500,000 units per month should finally put the Wii in a position to be readily available and (at the same time) provide a buffer for the holiday period.

At 1.5 to 2 Million units per month (with a 1 to 2 Million unit stockpile) would enable Nintendo to sell 4 to 6 Million units worldwide over November and December ... Certainly, not as many as they would hope but enough to satisfy a large portion of demand.

When the Wii does catch up the internet media is going to rumble.

This stockpiling is nonsense.
Anyway, we will know soon enough, as they will show their results for the quarter soon.
Nintendo said they would increase production, and we'll see it in July (jump to 1.2 M/month). They also said they would increase production again in September, so I suppose we will see the 1.5 M/month in October at best, ready for the holidays.

And this thing about people not finding a Wii buying something else is nonsense too. It was more likely to happen with the DS and PSP, as the price was so close. But when someone wants to play a Training game, he doesn't go buy a PSP, even if he can't find a DS. Equally, someone won't go buy a PS3 or XBox 360 if he wants to play Wii Sports. Only delusional hopes can make someone think otherwise.

I love John Lucas, wow, what a post.

Such a pleasure to read, keep em coming.

Nintendo either didnt have enough time to increase Wii production or it is stockpiling for MP3, SSBB, DDR etc. and holiday season coming up. Although, I dont think Nintendo expected Wii to sell this well so they didnt have enough plants, and increasing plant capacity takes time and money. Ask any economist and he/she will tell you that in short-term production you can only increase production slightly (more workers, working for a longer time etc.) but there is a limit to how much you can increase your production, it is only possible in long-term production to increase production by 50% so nintendo just needs more time.

When you see the increase in consoles sold during November/December you'll see that it's not nonsense. There are a few reasons why Nintendo are stockpiling consoles:

Can you imagine the absolute chaos that there would be should there only be 800k Wiis for the holiday season? You have to remember that most of the money is spent here. People aren't going to buy a Wii now to give little Timmy for Christmas. They will buy one in November and December.

If a customer wants a Wii now, they will look for one. If they don't find one, they will keep the money and wait until it is available. If Mum wants to buy a Wii for her child for Christmas and can't find one she won't keep that money and wait until January, she will buy something else (perhaps an Xbox, Timmy said they were good) and Nintendo will have lost a sale.

The people who are buying Wiis now want a Wii, they don't want an Xbox or a Playstation. They heard about the Wii, they played it, and they want one. The people who buy Wiis over the holidays want a present, and if Wiis are not available, they will get something else.

Of course, if you don't believe me, then go ahead and disbelieve. I'll see you in the crow eating thread during the holidays once the Wii "production" "mysteriously" increases... =) 

Do people tell themselves that Wii won't have units ready for holidays as way to convince themself that it won't sell as well? First people say it a fad now they're hoping supply and demand will keep it from wiping the floor with the competition. This is somewhat childish.