IndustryGamers - Informing the Games Industry

I think Nintendo probably restricted production on purpose to create a higher demand on their product. This will guarantee each unit sells, and also create a sense of urgency to spend money on the items where Nintendo really makes their profits – the games and accessories. The profit margin is only about $50 on a Wii console. But games and accessories can be large moneymakers.
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You're probably right about that, Nintendo does tend to be conservative when sending things out into the retail channel - witness the first couple years with the Wii where the company didn't exactly rush to meet demand for the system.

I would like to perpetuate the Nintendo conspiracy a bit further, if I may. I was pretty ding-dang sure they purposely did not release enough Mario Kart for the Wii. I had to go back to the same GameStop 4 times to finally get one. I asked a GameStop employee, with an incredibly bad haircut, why they were always out, and he said they get like 3-4 copies a day and sell out by lunchtime. This is less than a month since the game came out. HELLO! THE WII'S SELLING LIKE SUPER HOT HOT CAKES, AND YOU'RE SENDING A MAJOR RETAILER 3-4 COPIES A DAY? That is just plain silly. To this day you can still get 25 smackers for trade-in! It's almost 2 yrs old!

As someone who helped merchandise the Beatles Rock Band games and bundles, I can say with certainty that they only sold well during their first month(the bundles). The last few months they have been selling very poorly, so poorly that Target has already put their remaining stock on clearance. And to be honest, one of the employees there told me back in December that as soon as the holidays were over they were going to clearance the Beatles bundles because they just weren't selling.

Im sorry, it doesnt make sense for any company to come short on shipments on purpose, the Wii shipped as fast as it sold theres no way Ninbtendo or any publisher for that matter would halt manufacturing and lose MILLIONS of dollars on purpose. Its a ludicrous idea, The fact that you could easily find PS3s after launch and they shipped as many units is a sign of this. if Sony had sold out for almost a year im sure they wouldve been delighted, it wasnt because they over supplied the stores, Its called Supply and demand, in this case there was more demand than supply. Nobody not even Nintendo thoought that the Wii would be this massive success out of the gate, especially aftyer the N64 and Gamecube performances. 360 very much in the same way was sold out and im sure Microsoft wouldve loved to have been able to supply millions of 360s more. Theres also a world wide launch that took place with the wii europe japan and the US all got the wii in a very short span of each other units were placed everywhere and thinly to launch worldwide. here we are 3 years later one month after christmas and at my best buy we still cant keep em in stock. Nobody wants to lose money and risk people lose interest. its too risky and not one that stock holders appreciate.

You apparently aren't understanding the core argument here Anthony – Nintendo has applied a conservative approach by not oversupplying the retail channel with Wii hardware, and to a lesser extent, software. It's not that their stopping their manufacturing – it's that they're not pushing to make more. The launch and the first several months afterward is one thing, but they had over two and a half years where you could not find a new Wii without persistence or luck. By putting out for demand that they know they'll meet, they've kept their profits up and it could be argued its made the Wii into a hot, hard-to-find commodity (I'm not sure Nintendo is exactly intending that; it's just a bonus), but some analysts have even said in the past that Nintendo has left money on the table by not meeting demand better.

The last few months they have been selling very poorly, so poorly that Target has already put their remaining stock on clearance.

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Nintendo is my favorite game ,You're probably right about that, Nintendo does tend to be conservative when sending things out into the retail channel - witness the first couple years with the Wii where the company didn't exactly rush to meet demand for the system,thanks for sharing the post.

Thanks for the post,heres also a world wide launch that took place with the wii europe japan and the US all got the wii in a very short span of each other units were placed everywhere and thinly to launch worldwide. here we are 3 years later one month after christmas and at my best buy we still cant keep em in stock.I like it.

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