Wii shortages--are they intentional?

Despite selling 13 million units already and boosting production capacity three times this year, the $250 Nintendo Wii is still one of those impossible-to-find Christmas presents that will be remembered along with Tickle Me Elmo and Cabbage Patch Kids dolls. Critics claim the company could boost production even more by using more than one manufacturing plant but it wants to keep the machine's value higher by keeping supplies down.

Nintendo of America President Reggie Fils-Aimes disagrees, saying his company can't forecast demand--and the shortages are costing Nintendo big time.

Read the full story on Businessweek.com: A Long, Long Wait for a Wii.

[capfan12]

can't forcast demand?........ I think demand for the WII is pretty clear......

[HikingStick]

While, on one hand, it hurts them when they miss sales (and lose them to other consoles), I do wonder if they are not purposefully not doing everything possible to increase supply. They're almost impossible to find in this area apart from premium bundles at a major electronics retailer, but a friend of a friend says they are available to Nintendo employees via a company store.

[philo36]

The problem is that is are lead times involved for each component prior to final assembly. If you don't order enough components you can't build enough machines. The orders are made sometimes several months out to accommodate the manufacturers schedule. These component manufacturers have other orders that must be filled at the same time and are not willing to change delivery times because one company mis-forecast demand. I don't work Nintendo but have considerable experience in the electronic business.

[joeltom]

Seeing as how you can't get a discount on any Nintendo product no matter where you look, it seems doubtful to me that they are trying to keep the value up. They could make millions more and they would all still cost the same. They seem to have their prices firmly fixed, and it amazes me that an Attorney General somewhere isn't looking into that as some sort of price fixing or restraint of trade deal...