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Originally posted by UnOrthOdOx
Back to the topic of Wii production for a second.
I think we can all agree that the demand for the Wii is something of a surprise. No one expected sales like this.
You're right in saying the console market is one of peaks and valleys. The Wii has yet to really see a valley, however. Sales have been a stable line. Demand did not drop off after launch, as is typically the case.
So, at least for the initial months, you cannot claim Nintendo was purposely manipulating the market. This claim then becomes a matter of whether they are pushing this demand to their advantage by continuing the 'low' production.
Their contract with the manufacturers undoubtedly had some kind of min/max numbers of order per month. To increase production, they would either need to sign new manufacturers, or rework the contract with existing manufacturers.
Also, if you increase the production, you must increase your warehousing/transportation/etc. This kind of increase does involve a major commitment up front. We also do not know if any of the contracts for manufacturing promised the companies exclusive rights to produce items.
So, for Nintendo, it becomes a matter of which to invest your money in: Increasing production of the Wii, or making more games for it.
Given their sales already being beyond expectation, I personally believe, they have chosen to make more games. This, ideally, would also spurs demand for the Wii, keeping it high.
If you want to call this a PR move, I suppose I can agree to that. I don't see it as such myself.
As for this "demand". As I've said earlier, I really don't see it. I'm not seeing anyone claiming to be unable to purchase a Wii locally. I've had several opportunities to, myself, but we're not going that route. I hear far more about the inability to buy Transformers toys this year.
Back to the topic of Wii production for a second.
I think we can all agree that the demand for the Wii is something of a surprise. No one expected sales like this.
You're right in saying the console market is one of peaks and valleys. The Wii has yet to really see a valley, however. Sales have been a stable line. Demand did not drop off after launch, as is typically the case.
So, at least for the initial months, you cannot claim Nintendo was purposely manipulating the market. This claim then becomes a matter of whether they are pushing this demand to their advantage by continuing the 'low' production.
Their contract with the manufacturers undoubtedly had some kind of min/max numbers of order per month. To increase production, they would either need to sign new manufacturers, or rework the contract with existing manufacturers.
Also, if you increase the production, you must increase your warehousing/transportation/etc. This kind of increase does involve a major commitment up front. We also do not know if any of the contracts for manufacturing promised the companies exclusive rights to produce items.
So, for Nintendo, it becomes a matter of which to invest your money in: Increasing production of the Wii, or making more games for it.
Given their sales already being beyond expectation, I personally believe, they have chosen to make more games. This, ideally, would also spurs demand for the Wii, keeping it high.
If you want to call this a PR move, I suppose I can agree to that. I don't see it as such myself.
As for this "demand". As I've said earlier, I really don't see it. I'm not seeing anyone claiming to be unable to purchase a Wii locally. I've had several opportunities to, myself, but we're not going that route. I hear far more about the inability to buy Transformers toys this year.
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