Yeah, they're really stockpiling units just because it continues to sell out even nearing the end of their fiscal year. :rolls eyes: They gain nothing by stockpiling. It doesn't matter if those sell prior to the end of the quarter of just after the start of the next fiscal year. Anyone with some economics and business in their background will tell you they'd gain nothing but bad press doing this.

Steve, you've hit the nail on the head. Gamestop doesn't get as much of the Wii supply has other major retailers. Nintendo wasn't too happy with how their product was handled in their stores. So I wouldn't be surprised if they were sending less stock to GS/EB than they were to other retailers. As for Nintendo holding back stock? Doens't make sense. They just can't meet demand. 6 million was their goal for the fiscal year, they've already surpassed that. Nintendo just underestimated the demand for the Wii. I don't think any one expected the Wii to sell as well as it has for such an extended period of time.

Here's Nintendo's response: http://www.next-gen.biz/index.php?option=com_content&task=view&id=5050&Itemid=2 Nothing too surprising a bit along the lines of what I said earlier.

the reason given by the CEO is that nintendo has already reached target for their fiscal year. it is reasonable. it's not like they're witholding like 50% of the stock, perhaps 5-10%. it is not implied anywhere that nintendo did it to create artificial demand. if that is the case, nintendo's 2007 april-june sales (fiscal 1Q of 2007) would beat most analysts' expectations and it would be a good short term play on its stock, perhaps especially after fiscal 2006 earnings are released in... i dunno, 1 month or so. either if nintendo isn't holding back, it could be an indicator that production is ramping up in earnest, and a similar stock play argument would hold as well.

as to whether it's sour grapes-- it is a possibility. the big 3's are generally unhappy with the booming used game sales at gamestop. unfortunately, it is a pure guess as to how the big 3 intends to deal with used game sales.

You deal with used games sales by not allowing games to be resold or getting rid of the place selling them all together. Both objectives are met with digital distribution. All Live Arcade and Virtual Console games are tied to their respective accounts/systems and cannot be resold/traded-in/etc.

Depends on how you do the ramp up: (TMU = time messrment unit, used in factories to calculate how long time an operation is done) * less TMU per Wii = yes and no, you probarbly need to do some changes to the factory outline. But if it is simple so that you increase the speed of the production line and your workforce can handle that with out increased quality problems nothing needs to be done). * One new factory = no.

It wouldn't be too shocking if Nintendo preferred giving limited Wii stock to stores like Wal-Mart and TRU that don't offer used games (which by definition take a bite out of Nintendo's own profits). But saying they are holding back stock is ridiculous. Why would they not want all the stock available sold ASAP while the product is hot...thus making them money, spurring software sales that make them even more money, and all the benefits that come with those things? It's dumb to say what GameStop is saying as it makes no sense. It's not like they are holding back stock because the shelves are too full or anything.

Had they held back, sales would be at or below 6 million. Hello!! We're a quarter of a million past that already and the fiscal year hasn't even ended yet? If there was a sudden cut of supply, don't you think other stores would be making similar comments? Wondering why they no longer get Wii's? This guy is just a bitter moron looking at the industry through horse blinders.

As I have already said (in an another thread), I have noticed that national Wii avaibility was near of 1 % during almost entire month of march (according itracker.com), instead of 12 o 15 per cent during month of february... I found it very strange But I don't understand why Wii has always had decent stocks in japan during the same month...