[QUOTE="Hoffgod"][QUOTE="Nickman71"][QUOTE="Hoffgod"] And maybe this is just the crazy economist in me, but perhaps, just perhaps, this is due to overwhelming demand, not underwhelming supply, and Nintendo isn't in the position to start pumping out a ton more right away.
*waits to see how long it is until someone calls me a sheep*
Nickman71
Nintendo doesnt the all the Wii's by themselves. They get Foxcon or Toshiba, who have the facilities, to do it for them. All they would need to do is lease 2 or 3 more production facilities. It's not like they can't afford it.
You're assuming that they have the facilities available to lease to Nintendo. And even if they do, which we don't know, how fast would they be able to turn them around and start pumping out Wii's? My guess is not very quickly.Besides, in the end, this boils down to a question of economies of scale. Yes, Nintendo would make more revenue by selling more Wii's, but they wouldn't necessarily make more profit. All the things I listed in my earlier post, Nintendo would have to do all them themselves, or contract it out to other companies to do, companies looking to make a profit in their business dealings. It's expensive to do. And if that cost of expansion is greater than the revenues of the new Wiis that get sold, then Nintendo has an economic incentive to not make more Wii's.
Expanding the scope of a business is not a simple thing. It is complicated, time consuming, and expensive. In the end, it can hurt the bottom line. And for a company that's as economically savvy as Nintendo, that's something I'm sure they're well aware of.
P.S. This is my second time writing this post. **** you, GlitchSpot!
Well at least Engadget agrees with me...
If this were Sony people would be up in arms with "TEH LIEZ". But its Nintendo so everything they say is the truth and everything they do is okay.
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