GameStop Theorizes Wii Shortage Deliberate
In GameStop's quarterly public conference call, company COO Dan DeMatteo called out Nintendo on what he sees as intentional supply shortages. Along with the news that the company hit $5.3 Billion in 2006, Next Gen reports that the call contained several remarks on the next gen systems. The Wii, Dematteo thinks, has been short supplied because 'they made their numbers for the year ... [Nintendo's] new year starts April 1st, and I think we're going to see supply flowing.' They also commented on the Euro launch of the PS3, with CEO R. Richard Fontaine saying, 'I think the summary of that was that it was a very good launch falling somewhat short of what [GameStop's Euro managing directors] would call a great launch.'
By stopping supply of Wiis to Gamestop.
I bought two Wii's before christmas.
PS3s marketing campaign was based on somebody getting stabbed in the parking lot, to get them on the news as the seasons "hot gift".
I don't need no instructions to know how to rock!!!!
Oh, I know they didn't just talk trash about my beloved Wii. Join me is correcting their obvious error Slashdotters, I just know you will.
You run the risk of having consumers turn to the Xbox360 instead because 3 months after Christmas is a long time to wait for a console.
I don't know if that is what Nintendo did... but it would seem short sighted to lose a customer over the life of this product and reaping in game sales just to have better numbers in one quarter.
This from the company that resells new reprints as used because the used sells for more.
If they're artificially choking supply at ~6million units sold worldwide already, I'd hate to hear those numbers if they weren't.
I'm shocked....
I'm not so sure that's the case though. There definitely does seem to be more demand than can be quickly supplied. Remember kids, the PS3 was the intentionally shorted console, and now they're on shelves everywhere. The Wii on the other hand is actually selling still and there's tremendous demand for them.
Where in the HELL are the online multiplayer games for the Wii? Is that intentional too?
At least they weren't impossible.
I bought one for my house and one for my nephews. I'd rather be complaining about a company providing a limited release when there is a lack of software than have the poor implementation of the competitors.
Anything you say will be held against you.
The Wii, Dematteo thinks, has been short supplied because 'they made their numbers for the year ... [Nintendo's] new year starts April 1st, and I think we're going to see supply flowing.'
Most companies -- especially in the video game industry -- would shipped everything out the door that would increase their numbers at the end of the quarter. Doesn't make sense for Nintendo to postpone revenues into the next fiscal year. I wouldn't be surprised if the Wii becomes more widely available in April since it should have been available now. I don't think Dematteo knows what he's talking about.
But I'm not sure this makes a lot of sense. "Making goal" for the quarter isn't exactly the most important issue in the world, in comparison to the livelyhood of an entire console generation. I'm not saying that they didn't intentionally short the supply, but I doubt that it was for this reason alone, it's just too risky. I doubt it was to make the launch look incredible either, because they still did incredibly well, and would have sold out even if they had put twice the number of units into circulation.
Probably a more practical reason is to short the supply of units during the innitial games draught, a game release slump which is simply unavoidable for any console. If 5 million people get their Wii off the bat, and then have to wait 6 months for good games to start coming out, you're going to have a lot of angry people. Currently, most people are still focused on getting the damn system itself, and don't have time to bitch about the lack of games. Now that some big titles, such as Super Paper Mario, and possibly MP3 are on the horizon, they can satisfy more customers, with less public backlash.
Multiplayer Gaming (defined): Sitting around, discussing single-player games with my friends, at the bar.
Trying to strong-arm Nintendo won't help, Gamestop.
SJW: Someone who has run out of real oppression, and has to fake it.
It's very, very common for businesses to proceed slowly after sales / profit goals have been met in a fiscal year. Short term planning proceeds on a year-to-year basis. Te vastly ramp up production without fully analyzing consequences is a good way to shoot yourself in the foot, even if every console produced was sold.
Fools rush in where angels fear to tread.
Best Windows Freeware
That dosn't seem to make any sense at all. Now, if you were going to accuse them of holding out on shipments of Wimotes in order to be able to get them in the WiiPlay combo boxes, I'd say yeah, I can see that, but it dosn't make any sense at all for Nintendo to be holding back on the Wii itself. From what I've seen they have been making regular shipments to various retailers, just not very large shipments. If you're patient and willing to make an effort, you can get a Wii, you just need to check in on a regular basis (which can be even easyer if you can find out the shipping schedule for one of the retailers). I pre-ordered my Wii and had it on release night, so I didn't need to worry, but I also know of at least 12 other people who didn't and have since purchased them. Of course, I don't know anybody that's purchased a PS3, but that's not due to a shortage there.
Ok, yeah, that last one was un-called for. And I do like the PS3, but only enough to pay about $350, so till then, I'll stick with the Wii (and maybe a 360 if they release the new hardware and it comes down to $300).
Curiosity was framed, Ignorance killed the cat.
Is it at all possible that Nintendo didn't expect the system to do so well in the US? DS-Lite is still the #1 seller in Japan while here its sales are more down to earth. By looking at that performance and equating DS = Wii, I'd call it reasonable to assume that they didn't expect demand to be so high.
More Twoson than Cupertino
I know when I want to drive demand from my customers, I always intentionally ship less and less product. Just seeing their little faces tighten up with anger as the realization they have ONCE AGAIN failed to buy my product warms my heart.
I think before too long I'll just stop shipping product all together, why the sheer panic as people riot in the streets for my items is sure to make me millions and millions of dollars
*point at lip with pinky*
Given that my local Toys'R'Us says they are getting 60 Wiis in on April 1, I find this very believable. Kudos to Nintendo for realizing they already had a huge profit and deciding to make sure their next fiscal year also turns a profit. Realistically, it's an unnecessary move, but why risk annoying your stockholders with a losing year?
-- I might be stupid, but you have to be good at something.
He says he thinks Nintendo intentionally dried up their supply. Well, duh. Is it hard to believe Nintendo would intentionally sell their consoles? Shocking, I know!
For quite some time now I've thought the shortage was deliberate to help them liquidate their stock of GameCube titles. I was never interested in the GC but there's such a shortage of good Wii games (that I have not already played through) I am forced to look in other directions. The online retro titles don't interest me so I'm forced to choose between lego star wars and mario sunshine.
As for april 1, I don't think we'll see anything new unless Nintendo issues with their shares has ended. Miyamoto couldn't announce anything new at the GDC because of it, so why would the company be able to make any april 1 announcements? If the issue is resolved then it's news to me.
Would you like a little ketchup to go with that hand that feeds you?
This is a stupid theory if you stop and think about it. Companies have revenue targets, but since when does it make business sense to stop at your target and not exceed it? Money in the bank is money in the bank. All that money spent on advertising to sell a product that's not in stock...? Come on. What a ridiculous theory.
The problem was that they launched worldwide! Normally, you launch in Japan, then North America, and then Europe and other territories. By launching worldwide simultaneously they tripled and quadrupuled the amount of stock they needed to supply at launch... and failed to meet it!
If Nintendo wants to control supply, who cares? It's their product. Get over it.
Nintendo has been using "supply shortages" as a business tactic dating all the way back to the NES. It keeps retailers and licensees in line, keeps anticipation high, and helps them leverage their software rollout strategy to the highest level.
n ue/dp/0966961706/ref=pd_bbs_sr_2/104-2040246-58511 46?ie=UTF8&s=books&qid=1175043506&sr=1-2
And I'll apologize for using the "leverage" buzzword by providing documentation to back up my facts.
http://www.amazon.com/Game-Over-Press-Start-Conti
Here's a question that i haven't heard asked: /. is largely english speaking US/UK/Ireland and there's no japanese /.er's coming on and saying that they've got no idea what the US consumers are talking about and that there isn't a shortage in Nintendo's home market. I'd be interested to see if the Wii is selling out in Japan too.
Are there Wii shortages in Japan? clearly
Nintendo has a long history with being extremely careful to not oversupply the SOFTWARE side of the business. It looks far better to have just enough, or slightly too few, copies of a game at the retail level than to have old games piling up on the shelves. Old games sold at a discount compete directly with new releases, and it just makes a console feel unwanted.
But that logic does NOT work with the consoles themselves.
Let me see, six months ago, exactly how many people figured the Wii would be the #1 console in demand at this point in time? Yeah, about zero. So, exactly how was Nintendo supposed to prudently build a manufacturing chain that could supply all the Wii's that turned out to be demanded? It couldn't. So, yeah, give it some time and the units will arrive. April 1st? Sure, why not. That'll have been 6 months since we've discovered the demand for Wii's.
reminding Gamestop how many other retailers would love to have some extra inventory.
What you say is true, but it doesn't really matter. The PS2 is going to die during the next 3 years either way. The question now is, which console will be the one to pick up the PS2's torch? This comes down to 360, PS3 or Wii. So the question is, which one (if any) is it?
:-)
Clearly, it would be in Nintendo's best interest to chatch up with and overtake the 360 as quickly as possible, to establish the Wii as the current-gen leader. Claiming that Nintendo intentionally sells less consoles is absurd.
Saying that the PS2 still beats the Wii is true, but it doesn't matter, since the Wii needs to beat the 360 and the PS3, not the PS2 - at least not for now
Personally, I like to play multiplayer games with my friends in the same room. I have absolutely nothing against online multiplayer, but it just doesn't interest me for anything other than providing better enemies than AI can. The issue with online multiplayer is that the devs often concentrate on online and then "forget" to include good splitscreen support. Why doesn't Motorstorm have four-player splitscreen? It's the perfect party game!
That's why I bought a Wii instead. Since Nintendo is dragging its feet with online, devs are basically forced to support "local" multiplayer.
I guess they learnt their lessons from Cartmanland
You just got troll'd!
If they'd just invest in some duct-tape and a couple of Gamecubes.
A console generation becomes 'current gen' once:
1. It makes up the majority of the install base or
2. People are talking about the 'next gen', turning the former 'next gen' into the 'current gen'.
You are reading a copy of my copyrighted post.
Wiis go for little over retail on Ebay, the 360 just got a pricedrop to 300€ and the 500€ PS3 wasn't released. You can buy a "Wii60" instead of a PS3 and have 50€ left over to spend on some games.
Justice is the sheep getting arrested while an impartial judge declares the vote void.
As a long-time Mac fan, the first thing that occurred to me when the Wii was so hard to find this winter was... is this a Nintendo problem? or an IBM problem?
IBM is notorious for production volume issues with PowerPC chips. Several times, Apple had to delay planned product refreshes because IBM simply couldn't churn out enough new-model chips to meet the projected demand. (Motorola was even worse.) It was IBM's supply issues, combined with an inability to break certain performance-per-watt barriers in the PowerPC design, that lead Steve Jobs to switch the Mac to Intel chips.
I strongly suspect that IBM is unable to supply enough Broadway chips to meet Nintendo's needs, even if Nintendo hired as much contract-manufacturing capacity as they could find to churn out Wiis. A Wii without a CPU isn't much use. Perhaps the problem is made worse by IBM also having to turn out Cell processors for Sony at the same time.
If my theory is true, I wonder... once Sony stops stuffing the retail channel with unwanted PS3s just so they can say they've "shipped" umpteen thousand units... will we see more Wiis as IBM diverts manufacturing capacity from Cell to Broadway?
They short the consoles because they don't have a game selection to keep customers happy yet. Releases are getting pushed back. There's nothing really worth buying, so you play sports over and over and over and....
In the mean time, if people are forced to wait until June to get a box, then they'll be able to get Mario Party, Smash Brothers, Zelda...y'know, the franchise games. So they keep the customer happy in the long run by not giving them a system with only weak game choices... Make 'em wait and play tennis once or twice on their lucky friend's machine in the mean time.
Just a theory without any basis in fact.