Nintendo's hardware shortages: Are they lying?

Do you guys believe that Nintendo is genuinely having troubles with their Wii production or do you believe they are creating false shortages to fuel media outlets into praising the Wii's "totally sold out" success?

I can understand that Nintendo would have shortages around launch but for it to continue to this point and them say that it may continue through to next year is somewhat unbelievable. Sony stated earlier in the year that they were having production troubles and people called them liars, but when Nintendo says it, they are telling the truth?

It seems a bit unbelievable to me that this company who has been in the business for such a long time still doesn't know how to produce effectively.

I'm not alluding the the idea that Nintendo is definitely creating false shortages, I'm just stating that it is possible. And also I would hate to hear the exuse that Wii was under supplied at Christmas if PS3/360 outsell it, because it doesn't really make sense.

What do you guys think?

I can totally believe that, Wii's are in 75% of Japanese homes, that's right 75%! This is no mere gaming console, it is a cultural fad.

I think theyre BS'ing. There are employees who have told me face-to face that they have Wii's, but they only supply a small number and are told to hold them until Sundays (because it keeps the craze going), it's pretty pathetic.

I think theyre BS'ing. There are employees who have told me face-to face that they have Wii's, but they only supply a small number and are told to hold them until Sundays (because it keeps the craze going), it's pretty pathetic.

RagedRaldo54

also 100% true. Heck when I got one on launch, and planned to get my fiance one for her birthday they refused to sell me one since they were holding them till sunday. 

I think theyre BS'ing. There are employees who have told me face-to face that they have Wii's, but they only supply a small number and are told to hold them until Sundays (because it keeps the craze going), it's pretty pathetic.

RagedRaldo54

come sunday they all sell out.

so it doesnt matter either way 

[QUOTE="RagedRaldo54"]

I think theyre BS'ing. There are employees who have told me face-to face that they have Wii's, but they only supply a small number and are told to hold them until Sundays (because it keeps the craze going), it's pretty pathetic.

oback

come sunday they all sell out.

so it doesnt matter either way

Also not true. Sometimes it does, most of the time it doesn't here. They are selling it and advertising it on false demand. It was a good strategy though. 

[QUOTE="RagedRaldo54"]

I think theyre BS'ing. There are employees who have told me face-to face that they have Wii's, but they only supply a small number and are told to hold them until Sundays (because it keeps the craze going), it's pretty pathetic.

oback

come sunday they all sell out.

so it doesnt matter either way 

I dont think that makes sense.  I dont think the appeal of the wii is that it's impossible to find.  If there were more units out there then they would sell and nintendo would be all too happy to oblige.  If that thing about holding back to keep up the shortages is true, then it's not nintendo's doing, but the retailers.  I remember some retailers were charging $400 for the wii (and continue to?), and they pocket the difference, not nintendo. 

Shortages are not new to console sales as well, especially this early on.  Remember ps2? xbox360? Motion sensing tech probably has unique parts to it, just like bluray.  Nintendo has said that they had to build factories in china. Do you think that's a lie?  Cuz you could probably go see them if you wanted to.  Finally, I doubt nintendo, in their heart of hearts, actually predicted wii demand despite their glowing optimism in front of the media throughout the console's development.

[QUOTE="oback"][QUOTE="RagedRaldo54"]

I think theyre BS'ing. There are employees who have told me face-to face that they have Wii's, but they only supply a small number and are told to hold them until Sundays (because it keeps the craze going), it's pretty pathetic.

RagedRaldo54

come sunday they all sell out.

so it doesnt matter either way

He does. You don't understand what he was saying.

They're not BS'ing as you claim. It doesn't matter how many Wii's stores hold back until Sunday to spread out supplies, they're still sold out by the end of the week. The shop you go to just stocks one week in advance in order to protect themselves from potential shortages.

The problem is that as the demand is increasing with the production.Lilac_Benjie

Exactly! But fanboys are just too hard-headed to understand that.

I can totally believe that, Wii's are in 75% of Japanese homes, that's right 75%! This is no mere gaming console, it is a cultural fad.

lantus

75% of japanese homes.... right :roll:.

It's call supply and demand, economics 101. Everyone knows Nintendo wants to limit thier supplies to people on a console they are making $50 bucks a piece on just to keep up the hype, stockholders love that.......JackBurton28

[QUOTE="JackBurton28"]It's call supply and demand, economics 101. Everyone knows Nintendo wants to limit thier supplies to people on a console they are making $50 bucks a piece on just to keep up the hype, stockholders love that.......Unforgiven2870

Finding the right balance between inventory sitting on the shelves and it moving is one all companies who make a product struggle with. The PS3, while to me its a great system for multi-media, would be the one who would like to limit thier production as they are losing a money on each one made. The arguement that Nintendo is purposing holding back product they are making a profit on is ludicruis(sp). 

DS Lites were sold out during the holiday, I find that more suspect then the Wii shortage. I think Nintendo is underproducing because they can't afford to make units that they cannot sell.

[QUOTE="lantus"]

I can totally believe that, Wii's are in 75% of Japanese homes, that's right 75%! This is no mere gaming console, it is a cultural fad.

Trading_Zoner

75% of japanese homes.... right :roll:.

It was in a news article. And before you ask, Google it yourself.

I can totally believe that, Wii's are in 75% of Japanese homes, that's right 75%! This is no mere gaming console, it is a cultural fad.

lantus

I dont think that makes sense. I dont think the appeal of the wii is that it's impossible to find. If there were more units out there then they would sell and nintendo would be all too happy to oblige. If that thing about holding back to keep up the shortages is true, then it's not nintendo's doing, but the retailers. I remember some retailers were charging $400 for the wii (and continue to?), and they pocket the difference, not nintendo.

Shortages are not new to console sales as well, especially this early on. Remember ps2? xbox360? Motion sensing tech probably has unique parts to it, just like bluray. Nintendo has said that they had to build factories in china. Do you think that's a lie? Cuz you could probably go see them if you wanted to. Finally, I doubt nintendo, in their heart of hearts, actually predicted wii demand despite their glowing optimism in front of the media throughout the console's development.

GunSmith1_basic

Before I go on I just want to say that I never said (and never will say) that Nintendo are definitely creating false shortages. I'm saying it's a possibility because I don't work at Nintendo so I have no idea for sure.

Both PS2 and 360 fixed their console shortage issue a few months after launch, and it's been about half a year since Wii launched, and they've gone on record saying shortages will continue throughout the whole year.

Console shortages are a great thing because they keep the console in the media spotlight with headlines like "Wii continues to dominate" or "Wii sold out completely...again", which is great for Nintendo. I have nothing against console shortages and I think it's a very smart move. 

The only thing that prompted me to make this thread was someone saying something like "the only reason PS3/360 may outsell Wii at Christmas would be because Wii is having shortages" which makes no sense that MS/Sony are able to supply many more units of their consoles despite Nintendo being in the business for such a long time...meaning I'm sure they'd know how to produce effectively.

I could be wrong and I could be right, and I am interested to know what everyone thinks about this. 

I think it's very much the opposite. It's getting to the point where people are giving up on finding Wii's and buying other consoles. My uncle looked for one for every weekend since launch, and he finally gave up last week and bought a 360.

To create shortages intentionally at this point in the Wii's lifecycle doesn't make much sense. It's starting to drive the 

public towards the competition. 

I can totally believe that, Wii's are in 75% of Japanese homes, that's right 75%! This is no mere gaming console, it is a cultural phenominon.

lantus

Fixed! :D

Seriously there are actually laws that prevent companies from withholding products, not to mention legally stores HAVE to sell products when they arrive in the store, otherwise people will lose their jobs. If you are caught with items in the store that are not reserved and are holding them for someone specific, you can be fired for it.

I believe they test their Wii's before releasing them thats why there are supposed "Shprtages". They make sure it works to reduce complaints, unlike Sony and the PS1 and PS2's...tocool340

Currently though, the Playstation 3 is solid. It's failure rate seems pretty low.  

[QUOTE="Trading_Zoner"][QUOTE="lantus"]

I can totally believe that, Wii's are in 75% of Japanese homes, that's right 75%! This is no mere gaming console, it is a cultural fad.

elektrixxx

75% of japanese homes.... right :roll:.

It was in a news article. And before you ask, Google it yourself.

the wii has sold around 1.5 million in Japan and the population of Japan is around 127 million

 that means the average Japanese household has 63 people living in it

When you think about all the Gamestop's out there with people waiting for pre-orders not to mention all the other national chains with a bunch of locations its not suprising they can't meet demand. It does seem like they are catching up with demand because I hear more about people finding them at Wal-Mart and Sears. Its such a pathetic system though I think it will be just a flash in the pan outside of Japan.

[QUOTE="tocool340"]I believe they test their Wii's before releasing them thats why there are supposed "Shprtages". They make sure it works to reduce complaints, unlike Sony and the PS1 and PS2's...TekkenMaster606

Currently though, the Playstation 3 is solid. It's failure rate seems pretty low.  

I know. Thats why I didn't mention PS3, partly due to the fact of it's structure...

Nintendo doesn't give crap about its userbase.  They won't spend the money into more manufacturering factories if it means any amount of loss.

Meanwhile, Sony saved Japan with its manufacturing industry.  Who should we respect now? 

DS Lites were sold out during the holiday, I find that more suspect then the Wii shortage. I think Nintendo is underproducing because they can't afford to make units that they cannot sell.

 

Bread_or_Decide

You might be right, however it is only speculation. They know what is happening and I dont think the do want to produce millions upon millions of consoles even though the Wii has tonnes of appeal and is going to have a very interesting future. If you are correct and the way I see it, if Nintendo passes 10 million sold worldwide before the holiday season this year, they will probably pump out more units. I do find it hard to believe that its tough for them to produce 1.5 million consoles a month, realistically they should be able to produce about 2-3 million since its not expensive hardware. However that being said, Nintendo is known for having a long history with their consoles being of the highest quality, something Sony experienced for two generations and now Microsoft is getting the plague, so at least Nintendo is taking the extra time to make sure their consoles work before shipping them out of the warehouse, which is what might be slowing down production a bit.

I think they are holding back units. Before the Wii's launch, many months before, it was alleged (at the very least) that Nintendo had begun production well before the PS3 did. Let's be honest, the components are ancient by technology standards- ever see what the inside of a Wii looks like? It couldn't be more basic.

Now if Nintendo came out and said they were having a hard time with the remotes, then perhaps they'd have a leg to stand on (as its newer tech). It's pretty clear what they're doing- holding back shipments to get the press about how they're constantly selling out and it's the hottest item.

Now, this risks backlash of people giving up and buying another console or just completely moving on. As soon as Nintendo thinks this is happening (and perhaps it is now), you'll see a lot more units shipped. I'm not saying that there's a giant warehouse with hundreds of thousands of Wiis just sitting there, but they at least intentionally gimped their production.

I think theyre BS'ing. There are employees who have told me face-to face that they have Wii's, but they only supply a small number and are told to hold them until Sundays (because it keeps the craze going), it's pretty pathetic.

RagedRaldo54

[QUOTE="TekkenMaster606"]

[QUOTE="tocool340"]I believe they test their Wii's before releasing them thats why there are supposed "Shprtages". They make sure it works to reduce complaints, unlike Sony and the PS1 and PS2's...tocool340

Currently though, the Playstation 3 is solid. It's failure rate seems pretty low.  

I know. Thats why I didn't mention PS3, partly due to the fact of it's structure...

I can't believe that it took Sony 10 years to figure it out finally. Actually I dont want to pin the PS2's hardware problems on Sony completely, however they made the Disc Read Error issue themselves by changing the disc types every so often as well as the various versions of the console itself which all had some small hardware change (I think there were 13 versions of the original PS2 and 9 of the slimline model). They did it because they wanted to prevent people from modding their consoles or at least deter them from doing so.

Nintendo doesn't give crap about its userbase.  They won't spend the money into more manufacturering factories if it means any amount of loss.

Meanwhile, Sony saved Japan with its manufacturing industry.  Who should we respect now? 

NobuoMusicMaker

Are they selling 1 million consoles a month?  Yes.

With that knowledge, how can anyone possibly say they're withholding supplies?  That's so many consoles. 

Are they selling 1 million consoles a month?  Yes.

With that knowledge, how can anyone possibly say they're withholding supplies?  That's so many consoles. 

Jandurin

i think that they do have many wii's, and could ramp up production a lot more, but are building up on the success of the Wii.

Really, its smart marketing.  

[QUOTE="Jandurin"]

Are they selling 1 million consoles a month? Yes.

With that knowledge, how can anyone possibly say they're withholding supplies? That's so many consoles.

laughingman42

I couldn't get the fanboys to agree to 1.5 million, though.

Anyway, 1 million is plenty, imo.  :D 

I could be wrong and I could be right, and I am interested to know what everyone thinks about this.

the-very-best

It's ludicrous and can't be supported on any level.

Premise: Nintendo intends to create artificial shortages for the Wii and or DS consoles.

Fact: Nintendo is shipping enough units to make Wii the fastest selling console in history.

Fact: Nintendo is shipping enough units to break the record for home consoles sold in NPD April (Wii) and the record for total units sold in NPD April (DS).

If they intend to create shortages, why are they shipping so many units?  Wii is not just the fastest selling console in its first 6 months, it's the console that's shipped the most units in the first six months.

It just doesn't hold together.  Nintendo wants to create shortages, so they... ship more units in a shorter period of time than any console in the history of the market?

So with these shortages they are selling oh about a million a month...

So if they are doing that and still holding them back to drum up intrest... then... the Wii must be a killer. What does that say about the Xbox 360 and PS3 sales though... being outsold by a console that's in artificaly short supply. :roll: 

[QUOTE="the-very-best"]

I could be wrong and I could be right, and I am interested to know what everyone thinks about this.

Iyethar

It's ludicrous and can't be supported on any level.

Premise: Nintendo intends to create artificial shortages for the Wii and or DS consoles.

Fact: Nintendo is shipping enough units to make Wii the fastest selling console in history.

Fact: Nintendo is shipping enough units to break the record for home consoles sold in NPD April (Wii) and the record for total units sold in NPD April (DS).

If they intend to create shortages, why are they shipping so many units? Wii is not just the fastest selling console in its first 6 months, it's the console that's shipped the most units in the first six months.

It just doesn't hold together. Nintendo wants to create shortages, so they... ship more units in a shorter period of time than any console in the history of the market?

and this thread is over... I mean how can you argue against that...  

I think they are holding back units. Before the Wii's launch, many months before, it was alleged (at the very least) that Nintendo had begun production well before the PS3 did. Let's be honest, the components are ancient by technology standards- ever see what the inside of a Wii looks like? It couldn't be more basic.

Now if Nintendo came out and said they were having a hard time with the remotes, then perhaps they'd have a leg to stand on (as its newer tech). It's pretty clear what they're doing- holding back shipments to get the press about how they're constantly selling out and it's the hottest item.

Now, this risks backlash of people giving up and buying another console or just completely moving on. As soon as Nintendo thinks this is happening (and perhaps it is now), you'll see a lot more units shipped. I'm not saying that there's a giant warehouse with hundreds of thousands of Wiis just sitting there, but they at least intentionally gimped their production.

Vampyronight

You raise an interesting point. It could be that they have the consoles ready but not enough Wiimotes to go around. It is extremely hard to find the controllers around here, they are rare, just like the Nunchuck attachments. Their production line for the Wiimote is probably not all that fast and they are having a hard time pumping out enough Wiimotes to cover all the consoles, plus they might be testing all the hardware including the controller, sensor bar and the console itself, I bet it takes at least two days before a Wii is packed up and shipped out due to testing. Think about it this way, 4 controllers for each console (assuming the 7 million mark has been reached), that would mean that Nintendo has to produce 28 million Wiimotes to cover all those systems plus ones that might be defective or have just broken down (which is very unlikely).