Wii shortage could cost Nintendo billions

December 19, 2007

Wii shortage could cost Nintendo billions The Nintendo Wii was one of the most popular consoles last year and it is the most popular this year.  Only there is a problem, the company is still having problems meeting demand.  Conspiracy theorists may think this is by design and that argument may never be settled but it is unlikely this is the case as the situation will hit Nintendo financially.

If you were hoping to provide your children, family or other loved one/friend with a Wii this Christmas, dare I say that it is far too late to do so.  No store will have it in stock though you may be able to purchase one that has been jacked up in price on eBay, chances of receiving it in time are slim.

It seems a parts shortage has struck Nintendo and it is going to hurt the company financially.  The Scotsman provides information which states it could have sold double the 1.8 million consoles it has been producing each month.

Despite the shortage, the company says it is doing everything it can to meet demand.  But that’s not enough, the it may end up loosing just slightly over a billion dollars if it cannot fix these problems.

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4 Responses to “Wii shortage could cost Nintendo billions”

  1. mr.mikl:

    ok.. just so we all know, loss of potential sales does not loss of money make. its not like because they didnt sell what they could have sold (in theory) that they are losing money, or profits, just a potential sale. they havent lost anything. they just havent made as much as they could

  2. FFRPGFAN:

    In addition, it has been stated by Nintendo executives that they are earning a profit for each system sold. Because of this, they could simply sell a portion of the production run and break even with each additional system sold being pure profit, not to mention the games, controllers, etc.
    If they were delebritly holding back the system, they would just be hurting their own profit margins. Any shortage they have is likely a legitimate shortage of components, but as they are making money, they are quite happy to simply do what the can to sell more while not forcing themselves into a loss.

  3. Pwn?:

    Is the Wii shortage for real?

    It’s been some time since Wii Sports and Metroid Prime, and there does’nt seem to be any other exclusive killer app for this old cpu/next gen controller console.

  4. noWii:

    Nintendo is on a slippery slope with this fiasco of no Wii even after it has been out for almost a year. They decided to not ramp up its production or even try to. The consumer will be left with a bad taste and move on to another product.

    No Wii for You!

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