Whenever I talk to someone about the Nintendo Wii and the shortage, the first thing I hear is something along the lines of “I can’t believe Nintendo is holding back to increase demand.” Every time I hear that, I have to wonder if that individual has taken the time to step back and give what they are saying some thought. How is a shortage benefiting Nintendo?
People who want a Nintendo Wii can’t find one. Some get really mad at Nintendo, while others may just buy another unit such as an XBox 360 or a Playstation 3. At the same time, 3rd party video game publishers don’t want to make their games for the Wii because to many potential buyers don’t have a unit to play it on.
Today I ran across a post over at the New York Times that backs up my thought process a little bit. Here is part of that article:
“It’s pretty amazing,” Jim Silver, editor in chief of Toy Wishes magazine and industry analyst for 24 years, said. “By a year later with hot items, inventory usually catches up.”
“It’s staggering,” said James Lin, MDB Capital Group senior analyst. He estimates that Nintendo are losing $1.3 billion in unmade sales. “They could easily sell double what they’re selling.”
Is it worth $1.3 billion dollars to keep the demand that high?
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