Why can't Nintendo produce more systems?

This is mind boggling to me.  I'm not talking exclusively about the Wii.  The DS has been selling out consistently for 2 years and it's still difficult to find them (nearly impossible in Japan).  I can understand having short term shortages like with the Wii because of unexpected demand.  But when the demand is consistent for years it's a pretty good sign that they need  to be producing a lot more systems. 

I think that Nintendo is still expecting sales like with the GC.  Lets take best case scenario here with the Wii.  If Nintendo produces 1 million per month which is what they are working to move up to:

Year 1 - 16 million (4 from launch)

Year 2 - 12 million - 28 total

Year 3 - 12 million - 40 total

Year 4 - 12 million - 52 total

Year 5 - 12 million - 64 total

That's half of what the PS2 sold and best case scenario.  Nintendo needs to go out and buy a bunch of additional warehouses and make a bunch more systems.  There is no reason for the DS to have shortages like it has had and the Wii is moving down the same path.  They will earn back the costs for the new warehouses in a short period.

Because it's good to sell out. It keeps the hype up. Once there's no turn back and the system is established they can produce even more and be sure it will sell constantly.Wintry_Flutist

That's not what economists say...  .... looking for a link.

[QUOTE="Wintry_Flutist"]Because it's good to sell out. It keeps the hype up. Once there's no turn back and the system is established they can produce even more and be sure it will sell constantly.Firelore29

That's not what economists say... .... looking for a link.

[QUOTE="Wintry_Flutist"]Because it's good to sell out. It keeps the hype up. Once there's no turn back and the system is established they can produce even more and be sure it will sell constantly.Firelore29

That's not what economists say... .... looking for a link.

[QUOTE="Wintry_Flutist"]Because it's good to sell out. It keeps the hype up. Once there's no turn back and the system is established they can produce even more and be sure it will sell constantly.Firelore29

That's not what economists say...  .... looking for a link.

So what if the economists say otherwise. One does not need to be an economist to know unless you make sure your system looks hot, it won't sell well. If they make right now all systems needed to supply demand, all the talk about the Wii will die.

[QUOTE="Firelore29"]

[QUOTE="Wintry_Flutist"]Because it's good to sell out. It keeps the hype up. Once there's no turn back and the system is established they can produce even more and be sure it will sell constantly.Mac8457

That's not what economists say... .... looking for a link.

That you Mr. Economist.  I realize that.  I have a minor in economy.

[QUOTE="Firelore29"]

[QUOTE="Wintry_Flutist"]Because it's good to sell out. It keeps the hype up. Once there's no turn back and the system is established they can produce even more and be sure it will sell constantly.Wintry_Flutist

That's not what economists say...  .... looking for a link.

So what if the economists say otherwise. One does not need to be an economist to know unless you make sure your system looks hot, it won't sell well. If they make right now all systems needed to supply demand, all the talk about the Wii will die.

... can't find a link but I will.  That's not the way it works.  I realize there is a economic principles where you create artificial demand to increase hype about a product.  The problem is that you have to increase production fairly quickly because otherwise people will buy substitute products which in this case are the PSP or 360/PS3.  There are times throughout the year that sales of certain products like this increase significantly (i.e. tax time and Christmas).   The company needs to fulfill demand during the other parts of the year so that they will have apple supply for those periods.  They will still get the hype you are referring too during the peak sales times.

[QUOTE="Wintry_Flutist"][QUOTE="Firelore29"]

[QUOTE="Wintry_Flutist"]Because it's good to sell out. It keeps the hype up. Once there's no turn back and the system is established they can produce even more and be sure it will sell constantly.Firelore29

That's not what economists say...  .... looking for a link.

So what if the economists say otherwise. One does not need to be an economist to know unless you make sure your system looks hot, it won't sell well. If they make right now all systems needed to supply demand, all the talk about the Wii will die.

... can't find a link but I will.  That's not the way it works.  I realize there is a economic principles where you create artificial demand to increase hype about a product.  The problem is that you have to increase production fairly quickly because otherwise people will buy substitute products which in this case are the PSP or 360/PS3.  There are times throughout the year that sales of certain products like this increase significantly (i.e. tax time and Christmas).   The company needs to fulfill demand during the other parts of the year so that they will have apple supply for those periods.  They will still get the hype you are referring too during the peak sales times.

I'm sorry, it's the way it's working right now.

I think no one expected this kind of sucess with the WiiTravo_basic

[QUOTE="Firelore29"][QUOTE="Wintry_Flutist"][QUOTE="Firelore29"]

[QUOTE="Wintry_Flutist"]Because it's good to sell out. It keeps the hype up. Once there's no turn back and the system is established they can produce even more and be sure it will sell constantly.Wintry_Flutist

That's not what economists say...  .... looking for a link.

So what if the economists say otherwise. One does not need to be an economist to know unless you make sure your system looks hot, it won't sell well. If they make right now all systems needed to supply demand, all the talk about the Wii will die.

... can't find a link but I will.  That's not the way it works.  I realize there is a economic principles where you create artificial demand to increase hype about a product.  The problem is that you have to increase production fairly quickly because otherwise people will buy substitute products which in this case are the PSP or 360/PS3.  There are times throughout the year that sales of certain products like this increase significantly (i.e. tax time and Christmas).   The company needs to fulfill demand during the other parts of the year so that they will have apple supply for those periods.  They will still get the hype you are referring too during the peak sales times.

I'm sorry, it's the way it's working right now.

That's because they can't produce enough systems. 

Unfortunatly for Nintendo this does not match with a normal supply and demand model.   In a true supply and demand model when demand increases price increases and a new supply and demand point or equilibrium price is created.  The company can't increase price because it would create a backlash against Nintendo so they need to significantly increase supply.

I think no one expected this kind of sucess with the WiiTravo_basic

I would agree with that but they need to respond faster.  Obviously they could not produce a bunch more Wii's in this short of period but they should not be having this problem with the DS.

[QUOTE="Wintry_Flutist"][QUOTE="Firelore29"][QUOTE="Wintry_Flutist"][QUOTE="Firelore29"]

[QUOTE="Wintry_Flutist"]Because it's good to sell out. It keeps the hype up. Once there's no turn back and the system is established they can produce even more and be sure it will sell constantly.Firelore29

That's not what economists say... .... looking for a link.

So what if the economists say otherwise. One does not need to be an economist to know unless you make sure your system looks hot, it won't sell well. If they make right now all systems needed to supply demand, all the talk about the Wii will die.

... can't find a link but I will. That's not the way it works. I realize there is a economic principles where you create artificial demand to increase hype about a product. The problem is that you have to increase production fairly quickly because otherwise people will buy substitute products which in this case are the PSP or 360/PS3. There are times throughout the year that sales of certain products like this increase significantly (i.e. tax time and Christmas). The company needs to fulfill demand during the other parts of the year so that they will have apple supply for those periods. They will still get the hype you are referring too during the peak sales times.

I'm sorry, it's the way it's working right now.

That's because they can't produce enough systems.

Unfortunatly for Nintendo this does not match with a normal supply and demand model. In a true supply and demand model when demand increases price increases and a new supply and demand point or equilibrium price is created. The company can't increase price because it would create a backlash against Nintendo so they need to significantly increase supply.

[QUOTE="Travo_basic"]I think no one expected this kind of sucess with the WiiTak963

Lol, I'm sorry for calling you stupid Firelore... I'm tired of all the questions about nintendo's productivityNachician

I reported you.

Wow, how childish...Mac8457

[QUOTE="Nachician"]Lol, I'm sorry for calling you stupid Firelore... I'm tired of all the questions about nintendo's productivityFirelore29

I reported you.

I'm not going to lie, not being able to find a Wii is starting to piss me off. I hate going into a store and seeing that bottom shelf, then all them games that I want to play mocking me, I honestly want the Wii so that I don't have to buy like 6 games when I buy it, I mean, when I buy it I'm already at a score of wanting like 7 games. Madden 07, Red Steel, Zelda, Excite Truck, Trauma Center, and Warioware. When Sonic comes out it will be like 8, then we have other games coming out...grrrrr.Bluestorm-Kalas

[QUOTE="Firelore29"]

[QUOTE="Nachician"]Lol, I'm sorry for calling you stupid Firelore... I'm tired of all the questions about nintendo's productivityNachician

I reported you.

I did it before you said sorry.  I was just warning you so you could tell someone.

[QUOTE="Travo_basic"]I think no one expected this kind of sucess with the WiiTak963

Disagree, no one anticipated this amount of popularity from the Wii.  Just like when the DS Lite came out..

Nintendo knew it'd be bigger than the Gamecube, but that's not saying much.

[QUOTE="Wintry_Flutist"][QUOTE="Firelore29"][QUOTE="Wintry_Flutist"][QUOTE="Firelore29"]

[QUOTE="Wintry_Flutist"]Because it's good to sell out. It keeps the hype up. Once there's no turn back and the system is established they can produce even more and be sure it will sell constantly.Firelore29

That's not what economists say...  .... looking for a link.

So what if the economists say otherwise. One does not need to be an economist to know unless you make sure your system looks hot, it won't sell well. If they make right now all systems needed to supply demand, all the talk about the Wii will die.

... can't find a link but I will.  That's not the way it works.  I realize there is a economic principles where you create artificial demand to increase hype about a product.  The problem is that you have to increase production fairly quickly because otherwise people will buy substitute products which in this case are the PSP or 360/PS3.  There are times throughout the year that sales of certain products like this increase significantly (i.e. tax time and Christmas).   The company needs to fulfill demand during the other parts of the year so that they will have apple supply for those periods.  They will still get the hype you are referring too during the peak sales times.

I'm sorry, it's the way it's working right now.

That's because they can't produce enough systems. 

Unfortunatly for Nintendo this does not match with a normal supply and demand model.   In a true supply and demand model when demand increases price increases and a new supply and demand point or equilibrium price is created.  The company can't increase price because it would create a backlash against Nintendo so they need to significantly increase supply.

Look, no one at Nintendo picks a book, reads and decides to apply some "rule". You learn what's in them to get a minor in economy, but once you're facing the real deal that's different. You won't prove anything by reciting something you've read somewhere. They can't produce all Wiis at once, and that's being very good, it's keeping the Wii in the news, and the momentum won't stop too soon. They don't need to take any risk right now.

If you wanted a Wii so badly why didn't you stand in line at launch and get one? That's what I did.hawk2416

I have one and I love it.  I just want to see Nintendo do well.  To do that they need to increase production significantly across the board.

[QUOTE="hawk2416"]If you wanted a Wii so badly why didn't you stand in line at launch and get one? That's what I did.Firelore29

I have one and I love it. I just want to see Nintendo do well. To do that they need to increase production significantly across the board.

You guys have been watching too much Star Trek.  Nintendo doesn't have a replicator that they can turn up to 11 and crank out more Wiis.  It takes time to plan out production for something as complicated as the Wii.  The Wii's parts come from many different manufacturers.  You can't retool a factory overnight to increase production.  There might be some part that's being produced as fast as possible and causing a bottleneck.

It doesn't make any sense for Nintendo to withold units just to make demand go up.  Demand is already up, beyond what they expected.  If they don't meet demand they'll lose sales. 

Here's the situation:

1. A lot of people want a Wii.
2. These people can't find a Wii.
3. This builds up hype.
4. These people will not, for the most part, purchase a substitute product as the demand for the Wii among this group is inelastic -- they're just going to wait for it.
5. Nintendo makes a lot of money.
ZephyrSB

You left out step 4.5 Nintendo has to make enough units to meet demand before they can make money of the people who are waiting.  It doesn't do them any good to create hype if they can't sell consoles and games.

[QUOTE="Tak963"][QUOTE="Travo_basic"]I think no one expected this kind of sucess with the Wiigooflee

I went to Best Buy last week and there were like 15 PS3 just sitting on the shelf.

[QUOTE="ZephyrSB"]Here's the situation:

1. A lot of people want a Wii.
2. These people can't find a Wii.
3. This builds up hype.
4. These people will not, for the most part, purchase a substitute product as the demand for the Wii among this group is inelastic -- they're just going to wait for it.
5. Nintendo makes a lot of money.
aransom

You left out step 4.5 Nintendo has to make enough units to meet demand before they can make money of the people who are waiting. It doesn't do them any good to create hype if they can't sell consoles and games.