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They'll get more on shelves [which will help things and improve the picture I have about this whole ordeal in my mind] by stealing some of the would-be-going-to-Japan shipments.

Here's the deal. (elaborating on what Ed said which was the point I've been trying to make here)

bear with me, we're going to play a "comparison" game.

Option #1:
1,000 people want Wii's. Nintendo makes 1,000 and ships 500 to retailers. 1/2 the people get a Wii, the other half have to wait 'til next month when Nintendo decides to ship the other 500 that are sitting in the warehouse. Nintendo's investors see 500 shipped, 500 sold. mo money, mo money mo money.

-or-

Option #2:
1,000 people want Wii's. Local stores get 2,000. All the people get a Wii, the other 1,000 sit on shelves collecting dust. Nintendo's investors see that they shipped 2,000 but only sold half. OH NOES! PROFIT DOWN THE TUBEZzzzZZ!!!!~!

What is Nintendo doing?
#1.

That's the point.
Are the overall sales figures good for them? Sure. They outsold everyone. cheers!

DEMAND REMAINS HIGH. because supply is LOW.
Supply and demand...anyone? anyone?
Nintendo is restricting the supply flow so it stays LOW so that DEMAND REMAINS HIGH.

maybe when Wii demand is still this high in 3 years when the system is approaching the "sooooo 5 minutes ago" phase, then you'll start to question the almighty N and realize 'something just isn't right here'.

Do you people honestly think that the Nintendo hardcores - day one Wii buyers...don't already have a system? Ok what does that leave as Wii buyers/owners? Fence sitters and fad gamers (mom and pop, grandparents, people who've never played a game in their lives)

Do you honestly think that fad gamers make up enough of the game system/title buying world that they would singlehandedly take all of the available Wii's on shelves if production was as high as they say? do you really think that the supply that they are shipping to retailers is not enough to give FAD buyers a system and still have leftovers on the shelves?
 
They'll get more on shelves [which will help things and improve the picture I have about this whole ordeal in my mind] by stealing some of the would-be-going-to-Japan shipments...


Interesting idea...

But if Nintendo were practising your "Option 1" the 'Top Dogs' would be fired by the shreholders for letting 500 Wii's sit around in a warehouse - which cost's money - instead of them being on the shelves of shops where they would sell and 'generate' profit. Especially since, in your example, there are 500 more customers that want to buy the Wii right now.
 
They'll get more on shelves [which will help things and improve the picture I have about this whole ordeal in my mind] by stealing some of the would-be-going-to-Japan shipments.

Here's the deal. (elaborating on what Ed said which was the point I've been trying to make here)

bear with me, we're going to play a "comparison" game.

Option #1:
1,000 people want Wii's. Nintendo makes 1,000 and ships 500 to retailers. 1/2 the people get a Wii, the other half have to wait 'til next month when Nintendo decides to ship the other 500 that are sitting in the warehouse. Nintendo's investors see 500 shipped, 500 sold. mo money, mo money mo money.

-or-

Option #2:
1,000 people want Wii's. Local stores get 2,000. All the people get a Wii, the other 1,000 sit on shelves collecting dust. Nintendo's investors see that they shipped 2,000 but only sold half. OH NOES! PROFIT DOWN THE TUBEZzzzZZ!!!!~!

What is Nintendo doing?
#1.


Well investors would see 1000 units sold > 500 units sold...but I see your point.


But your assuming Nintendo has extra Wiis.....they don't. They are moving Wii around to get USA more, which means they both want more sales, and still don't have enough Wii.


The situation isn't either Option 1 or 2...there can be 3,4 or more options.


"Only a Sith deal in absolutes"
 
Interesting idea...

But if Nintendo were practising your "Option 1" the 'Top Dogs' would be fired by the shreholders for letting 500 Wii's sit around in a warehouse - which cost's money - instead of them being on the shelves of shops where they would sell and 'generate' profit. Especially since, in your example, there are 500 more customers that want to buy the Wii right now.

Particulary since Nintendo also sells software. The more Wiis that are in homes, the more software they sell. But then, that might just be too logical for some.
 
They profit on the console and games...seems reason enough to have them on the shelf if they can get them there.

I really think they weren't prepared at first and are still retooling to get things going, but at the same time being wise. They've sold as much as the dreamcast sold in its lifetime (maybe not quite there I don't obsess over sales numbers as it wont' make me more of a man). Their previous system didn't sell well at all. It got spanked really. I think if they looked at any of their past data they would have made a console projection that was way more reasonable than what they're now experiencing. I don't think anyone would have projected this kind of sales this soon.

If there is a conspiracy and they are creating demand. Kudos for Nintendo! It's what their marketing people are paid so well to do. If they are creating hype they've done it, it's working, and the system is selling really well despite hardcore gamers griping about not enough good games (I find quite enough for anyone who also enjoys a life away from a glowing TV).

Regardless it's selling well. Is Microsoft's brilliant strategy to ensure everyone thinks their name is synonymous with failures and crashes? Is that a marketing conspiracy so Gates can cash in on his Apple stocks :) Or is Sony's big marketing plan to wait way too long to enter in, have a short supply of less than stellar games, and still make all of it cost too dang much?

I say again though. No one is less of a person regardless of who is doing what. I'm not a stupid consumer if I buy a Wii because it has the games I like. They've been sitting on shelves here and in my hometown as long as they've been out. Fact. I waited a few months to buy one so I could get on in the US and play US VC games. I walked right into a Gamestop and bought one.

Conspiracy or not why do people care about gaming console sales numbers so much? Do you guys ever just stop and enjoy playing games?

Paul
 
Nintendo is feeding the media hype created fad, they are playing on the "they are rare" stock by limiting production and giving stores 2 or 3 units per shipment. See here, people like to think what they are getting is rare, or at least isnt something that a lot of other people can get but that others in their social circle want (see FAD). If they were readily available on the shelves that psychological feeling goes away (which is a VERY important marketing perspective), Nintendo knows this, hence Zero's logic makes a lot of sense since limiting the supply chain would make it seems as if it were hard to get and/or a rare item.

Psychology is a large part of any sale, but it sounds to me like you're implying this is the only reason the Wii is selling at all. So the sales numbers couldn't possibly be due to the fact that the Wii is a LOT of fun?

...(long and well-thought out post)...

First, I want to point out that I do indeed understand the argument you are making, and that supply limitation is a very real thing in business.

That said, and although they could indeed possibly be crippling the supply, that issue can't be the only thing we look at here.

As cliche as it is, Nintendo has captured a LOT of non-gamers with the Wii, and the more exposure it gets (meaning actual face time with people) the more it will sell. I believe this is why it is still selling so well, not due to a limited supply, but because it's still gaining momentum with your non-traditional gamers.

As you said, people that wanted a Wii from day one already have them. What we are seeing now are the fence-sitters and non-gamers, and this crowd continues to grow. How long will it keep this momentum going? Who knows.


Friend of mine said Superbad was the best and most hilarious movie he'd seen all year (and he has seen the Simpsons movie). Said SB had him laughing throughout the entire movie...may want to check that out.

Eventually my wife and I will get to drop our daughter off somewhere and enjoy a movie for a change as well. Prob go see SB. :)

We ended up seeing The Bourne Ultimatum. We both really enjoyed the first two, and wanted to make sure and see the third in the theatre as well. It was good too, but it's been a LONG time since I've paid full price for a movie ticket. $8.75 a ticket is highway robbery!

Superbad looks hilarious! We'll probably wait to rent it though, because I doubt it will still be playing when we get another chance to have a night out. ;)

Oh, and we saw the trailer for Beowulf. That looks awesome! Check it out, if you haven't already.
 
Anyone who works in retail care to compare how many Wii vs 360 or PS3 shipments they're getting? That would finally put this shortages thing to bed (despite the overwhelming evidence already pointing away from that)

I understand this is 3 pages ago, but tbh I couldn't be arsed reading all the pages, so this be my 2 penneth-worth.

We've [GAME] had plentlyful PS3s since launch. More than ample. Same with the 360, really. Aside from the mad rush at the beginning we got them in stock a month or two after launch. Wii we have only started getting a decent amount of this week. Since launch we've been getting maybe 10 a week (If we're lucky) and they sell out in a day. No problem. This is the only week i've seen us actually have any sitting in our stock room.

Compared to the 360 Elite (Launched yesterday in Europe) which we've had sitting in there for about 3 weeks now and we sold about 10 yesterday, no where near the stock we have.

I'm fairly sure thats the trend throughout the company, and I'm sure it is throughout our region.

I'm not going to make any judgments, but make of that what you all will.
 
The people who want Wiis should've had one by now if the supply wasn't being falsely restricted.

1. People want a Wii system.

2. Nintendo manufactures many but only ships 1/2 of the manufactured bunch to retailers, holding the other 1/2 for a further shipment date.

3. Potential Wii buyers either get a system when that meager shipment arrives, or they have to wait longer.

4. With slower, smaller shipments, Wii systems continually sell out because the demand exceeds the (artificially crippled) supply.

5. Therefore Nintendo can use the "look at the sales figures! Every Wii system shipped has sold out!" motto and look better for NPR and their investors.

People, this isn't rocket science. If it looks like a duck and walks like a duck...

Are you seriously telling me that all the worldwide Nintendo fanboys wouldn't have bought up all the Wii systems by now if there wasn't an artificial shortage?

9 months after launch???

Riiiiiiiiiiiiiiiiiiiiiiiiiiiiiiight. :rolleyes:

Please, do tell me how they manufactured Gamecubes for so long and refined that process to the nth degree, and a system that is practically a glorified Gamecube is impossible to manufacture quickly right off the bat?

Again, Nintendo has shipped 10 million Wii's in less time than it took Microsoft to ship 10 million XBox 360's.

If you think Nintendo was restricting demand, and they OUTSHIPPED MICROSOFT, then what was Microsoft doing?
 
Your arguments are vaild and make perfect business sense, +1. However thats why no one in these forums will understand them and will make asinine remarks to them.

Logic doesn't fare too well here Zero, you should know this by now. ;)

Ed

Ah, but you confuse logic with wishful thinking ;) Simple mathematics show that even IF Nintendo was restricting demand, they're still outshipping Microsoft. Some "artificial shortage".

It's all demand.

That's ok though. I'll take my common sense argument elsewhere, I'm not too thirsty for kool-aid right now. :cool:

...there's plenty of kool-aid to go around guys, help yourselves. :rolleyes:



Translation: Whoops, someone refuted my "common sense" with simple math with an ounce of logic. Better to call everyone else stupid and run off than concede, because conceding is for babies and little girls!

Come on, dude. If Nintendo's selling systems faster than anyone else, then to be restricting supply they'd have to be producing like twice as many as anyone else.


Concession Accepted, thanks for trying.

And Ed, calling everyone who disagrees with you stupid is not the way to debate.
 
Still doesn't excuse the fact [that has no excuse] which is that the system is absent from store shelves.

Actually, it does; Microsoft took 12 months to ship 10 million units, right? But when Microsoft did this, they OVERSHIPPED, if you recall, and XBox 360's were piled in pyramids!


So 10 million in 12 months was overshipping, thus excess stock was left lying around everywhere.

Nintendo has shipped 10 million in 9 months; every one has sold.

The fact that people are buying every one Nintendo has shipped is not Nintendo's fault. Well, maybe it is :) But there's absolutely no way Nintendo can be restricting supply; they're vastly outproducing the XBox 360, even when Microsoft was overshipping demand!



I don't have a hard time ignoring anything.
'cept kool-aid drinkers. :p

Love the way you keep insulting everyone who disagrees with you.

Do you realize how silly it is that 9 months after the system launched, they're as impossible to find now as they were the day they came out?

Yes, it's silly; but looking at the raw numbers, it's clearly not the fault of the company, as they are shipping far more than every other company and still selling out!

The DS went through a shortage last year around Christmas time too, and it's been out for three years. Was harder to find than at launch.

Nintendo is feeding the media hype created fad, they are playing on the "they are rare" stock by limiting production and giving stores 2 or 3 units per shipment. See here, people like to think what they are getting is rare, or at least isnt something that a lot of other people can get but that others in their social circle want (see FAD). If they were readily available on the shelves that psychological feeling goes away (which is a VERY important marketing perspective), Nintendo knows this, hence Zero's logic makes a lot of sense since limiting the supply chain would make it seems as if it were hard to get and/or a rare item. Zero isn't saying it didnt sell, he is questioning their supply chain. That kool-aid must blind people, shield from logic, and give the drinker a not so clear view of common business practices and marketing. :rolleyes:

Ed


You speak well, Ed, but you drop no facts to back it up. You claim Nintendo is playing on the "they are rare" stock, yet fail to show any numbers that support such a theory (if Nintendo were in fact shipping less systems than their competitors, sales would be lower), while we show numbers that disprove your theory.

It was a nice idea though. I agree that it is a common business practice, but the numbers totally disprove any possibility of its usage, since they're outshipping all competitors (unless you intend to argue that Microsoft and Sony are equally undershipping).

How's the kool-aide taste on the other side? :)
 
They sold over 400,000 units in July! If they're restricting supply, they're doing a bad job of it...
 
How's the kool-aide taste on the other side? :)

Unfortunately very bitter :p ;)

I think Sony is holding back production to be honest. I don't think they want to flood the market and end up with the 360 pyramids you see all over at different retail chains. Sony realizes that at this point with the software it has that it needs to hold fast, not the greatest for monthly numbers, but at the same time not bad business practice either. Sony is too quiet right now, i believe you should call it the quiet before the storm. Remember watch out for that surprise right uppercut in the 10th ;)

MS has production issues, Billions of dollars worth of them... They also flooded the retail channel with units that are probably still there from their "we shipped 10 million" fiasco.

While i didn't intend to insult, my intention was to show that people don't open their eyes to see a broader picture when it comes to business practices.

I still hold to my opinion that Nintendo is holding back supply for the Psychological marketing perspective and to play on the weakening media hype created fad. They know it won't last forever, so they are doing what any good business would do, milk it for all its worth.

Ed
 
While I fully believe that Nintendo's playing on the media fad hype (see E3's press conference where they were showing off press articles and YouTube) to give it a "gotta have it" feel, I really find it hard to believe that Nintendo is STILL undershipping to this day if the Wii is consistently outselling/outshipping the PS2's first year and the XBox 360's first year.

If the numbers don't back up the theory...there's really no way to make it fit the facts, no matter how good it sounds.

If Nintendo were holding something back, they're still shipping more than any of the other console makers, so you can't really complain about it (and they must have ridiculous production capacities if they're shipping this many and holding some back.


Something to consider is this; when Sony launched, they had a huge gap between the US and European launch. When Nintendo launched, they launched in the US and were in Europe and Japan within a month; they severely spread themselves out.


Sony shipped to the US and Japan until demand calmed, then shipped to Europe. Nintendo's been spread out the whole time, and Japan is buying Wii's like hotcakes, and so is Europe and the US. I'd consider it much more likely that Nintendo simply underestimated Wii demand (especially likely considering the GameCube's history). On top of that, IIRC there was talk about Nintendo being frustrated with its suppliers; the current factories producing the Wii are pretty much maxed out, Nintendo thought they had enough to meet demand and didn't.
 
If you think Nintendo was restricting demand, and they OUTSHIPPED MICROSOFT, then what was Microsoft doing?

having to repair 10 million consoles :D



But I sort of can see Ed's/Zero's point because sold out shelves look much prettier than a pile of units but no chance in hell Nintendo is holding back units somewhere. My friend saw 2 Wii's at BB yesterday and just about crapped his pants and was like "DAMN! a Wii! should I get it? You never see them around" when I reminded him that he was bored of playing mine already so why would he spend $300 to get one to never use it, then he put it back and bought Guitar Hero II and Con Air. I just found the reaction to be funny, people freak out because they are so hard to get. I'm not saying thats why they are selling, they are selling because it's cheap and different and accessible for casual-gamers (tied with 'sandbox gaming' for the most over used and annoying phrases in gaming)

BUT I think they (Nintendo) should get their ass in gear and find more places to manufacture them because frankly, you are doing a disservice to your customers by making them wait a year or more to get a system. I know they are selling a ton but that means more money for Nintendo which is more money to spend on getting another manufacturing operation going to make more systems to make more money to sell Wii Fit to my mom and grandma.
 
Its funny how before the Wii came out everyone was saying it would be a failure. Now after it comes out and the sale numbers are surpassing the 360 in 6 months that it took the 360 two years to get....and people still think "oh its just a fad...its just because Nintendo is making shortages." I guess people really dislike to admit their wrong.
 
Its funny how before the Wii came out everyone was saying it would be a failure. Now after it comes out and the sale numbers are surpassing the 360 in 6 months that it took the 360 two years to get....and people still think "oh its just a fad...its just because Nintendo is making shortages." I guess people really dislike to admit their wrong.

The problem is not with the hardware. It's at an affordable price and offer a certain appeal to casual gamer. We just got a Wii at the office and It's been used by employe that you would never play game before during their break.

Now Nintendo needs to deliver on software. Casual gamer will purchase a 2 or 3 title in the lifetime cycle of the console. They need now to concentrate of delivering product for their fan base that buy games every month. So we will see how they deliver with SBS, MP and SMG. I am getting tired of seeing series of mini-game weeks after weeks. I needs a more complete experience.
 
Its funny how before the Wii came out everyone was saying it would be a failure. Now after it comes out and the sale numbers are surpassing the 360 in 6 months that it took the 360 two years to get....and people still think "oh its just a fad...its just because Nintendo is making shortages." I guess people really dislike to admit their wrong.

I think I'll jump in now...

Its also funny how sony has sold more consoles in its first 9 months than the 360 did in its 9 months yet people still look at the PS3 like its failing...where do you think this console will be in another 9 months......surpassing the 360 I believe.

But hey 4.2 million consoles sold in nine months is a joke right..


Its not only Nintendo and Sony that gotta pump out the titles they also need to encourage the 3rd party to move their arse and make quality games that compare to the 360(PS3 I'm looking at you here) and nintendo needs to tell these fellas to slow their roll with the half baked ports...but nintendo is porting themselves so its a follow the leader thing.


Next year is going to be interesting....will the wii go higher? will the PS3 pass the 360? will the 360 regain the title and become this gen PS2?



Bless
 
The problem is not with the hardware. It's at an affordable price and offer a certain appeal to casual gamer. We just got a Wii at the office and It's been used by employe that you would never play game before during their break.

We just got a director for health at work stuff, I'm trying to convince him to get a Wii in the office when Wii Fit comes out for the employees. Think I've got a shot? :D
 
I think I'll jump in now...

Its also funny how sony has sold more consoles in its first 9 months than the 360 did in its 9 months yet people still look at the PS3 like its failing...where do you think this console will be in another 9 months......surpassing the 360 I believe.
I think there is a difference....Wii was coming off NGC, Nintendo's worst selling system(minus Virtual Boy)....PS3 is coming off Sony's best selling console, so yes 4.2M is bad.

Wii is outselling pretty much every console to date(at the current rate)
 
DEMAND REMAINS HIGH. because supply is LOW.
Supply and demand...anyone? anyone?
Nintendo is restricting the supply flow so it stays LOW so that DEMAND REMAINS HIGH.

Um...you clearly don't know what "supply and demand" is. The laws of supply and demand refer to the prices of goods in the marketplace relative to the quantity of a products supplied by a producer to the quantity of a products demanded by the consumers. i.e A high demand and low supply would mean higher prices.

Supply does NOT influence demand. You cannot affect demand by producing more or less products. According to the supply and demand model, you can only affect demand by modifying prices. If Nintendo was truly, purposefully, restricting supply, then they would also then have to raise the price of the Wii. According to the laws of supply and demand, a business would want to reach an equilibrium point where the price of a good is set at the point where demand equals supply. If you set the price above the equilibrium point, you will have more supply than demand. If you set the price below the equilibrium point, you will have more demand than supply.

What is really happening in the marketplace, with the Wii, is that Nintendo misjudged the equilibrium point. They set the price of the Wii too low compared to what they could manufacture in relation to the number of people that want a Wii. Since Wii's have been selling out as much as they have, Nintendo could have gotten away with selling the Wii at a higher pricepoint...maybe $300 instead of $250. If they raised the price to $300, there would be less demand.

By restricting supply, Nintendo would lose profit, not make more money...because their price of the Wii is below the equilibrium point. Unlike Microsoft, Nintendo's goal is to make as much profit as they can out of their console. They have two options: 1. raise the price of the Wii or 2. produce more units. Since raising prices is not an option (within a current generation of a video game console), they have the only other option, which is to increase supply. Nintendo is doing everything that they can to increase production capacity. To not do so, or to hold back supply, would be a stupid business decision and would not benefit either Nintendo or consumers.

By your whole argument, if Sony produces less PS3's or ships less to stores (so that you will never see them in stock anywhere), more people would want to buy them....i.e. More consumers would be willing to pay $699 for a PS3 if they couldn't easily find them in stores than if the same PS3 costs $499 but were widely available in stores. That doesn't make sense, does it? That's not what is really happening now, is it?
 
By your whole argument, if Sony produces less PS3's or ships less to stores (so that you will never see them in stock anywhere), more people would want to buy them....i.e. More consumers would be willing to pay $699 for a PS3 if they couldn't easily find them in stores than if the same PS3 costs $499 but were widely available in stores. That doesn't make sense, does it? That's not what is really happening now, is it?

Actually, what you describe is an entirely valid marketing technique.

People were buying PS3's off eBay in the first week for $3000.

Because there were very few PS3's available, people were willing to pay thousands of dollars for them.

Still, it doesn't apply to Nintendo's case due to the sheer numbers they are selling (no way that is restricted supply) and the fact that they make a profit off the hardware (restricting PS3/360 hardware means the companies take less of a loss, since they lose money on the hardware; restricting Wii supplies just means less profit).
 
Actually, what you describe is an entirely valid marketing technique.

People were buying PS3's off eBay in the first week for $3000.

Because there were very few PS3's available, people were willing to pay thousands of dollars for them.

If it's a marketing technique, then the person who came up with it should be instantly fired.

I was actually going to mention what you said about PS3's and eBay in my post, above, but I had to quickly leave for a movie...which I've just returned home from.

Hardcore, "bleeding edge" consumers don't apply to the supply and demand model. They are willing to purchase goods at (virtually) any price. Enough so, that they fall far enough outside of the equilibrium price that they would be excluded from any calculations of it. The difference with "aftermarket" sales, like what has been commonly experienced on eBay (with system launches), is that these are secondary sellers, not the direct suppliers. Sony wasn't putting PS3's on eBay to sell them at that price (that we know of).

The rareness of initial PS3's, Wii's, Xbox 360's, etc. caused more speculators to purchase these systems, initially...as well as the hardcore consumers they sell to, who always want the "newest thing" with little regard to price. The laws of supply and demand do explain why prices suddenly shot up and then subsequently crashed once the remaining hardcore consumers made their purchases. However, secondary market prices do not directly benefit the manufacturer. Rareness and secondary market prices only influence the demand from speculators not the core consumer. Someone who does not want a product is no more likely to buy a product if it's rare than if it's freely available.

In addition, secondary market prices, themselves, will always eventually drop back down to the equilibrium price. This happens once the hardcore consumer has been satisfied. In the long run, the rareness or the scarcity of a product may also end up hurting the manufacturer. It does nothing to drive the demand of the core consumer and may, in fact, incline (force) consumers to make an alternate purchase from a competitor whose product is both comparable and more freely available. This is part of the reason why artificial supply restriction would not typically benefit manufacturers.

The video game market is surprisingly complex and extremely interesting. It has a lot of fascinating dynamics that play into it (pun intended :)).
 
Your arguments are vaild and make perfect business sense, +1. However thats why no one in these forums will understand them and will make asinine remarks to them.

Logic doesn't fare too well here Zero, you should know this by now. ;)

Ed

dude, don't be an asshøle.
 
If it's a marketing technique, then the person who came up with it should be instantly fired.

When you're selling a product at a loss, holding production back to increase demand for it due to rareness while you can take the time to reduce the loss you make on it makes a measure of sense.

You claim that people are not more likely to buy a rare product than a common product, but this is not true; it creates a "gotta have it" atmosphere and high eBay prices, so every one that people see on the shelf will sell because someone will snatch it and sell it on eBay.
 
Concession Accepted, thanks for trying.

What am I conceding again?
I agree that Nintendo's outsold everyone else, and sold more systems than the competition.

I still have a hard time beliving that the system is in such demand by non-gamers that it remains sold out.

I do admit that if they're holding back shipments, they're only shooting themselves in the foot and sales numbers would be even higher than they are and their lead would be much greater.

I will also end my argumentative half by saying that like several others have said...I hope for Nintendo's sake they start delivering with the software. They're on the right track, I just hope they don't make a wrong turn down the road like they did with the Gamecube. Despite it's eventual fall - I really did love the Gamecube for the first few years, and I want to do the same with the Wii but so far (RE4 love aside), I'm disappointed.


Since Wii's have been selling out as much as they have, Nintendo could have gotten away with selling the Wii at a higher pricepoint...maybe $300 instead of $250. If they raised the price to $300, there would be less demand.

Yes, true, but they wouldn't sell Wii systems for $300, at least not on the level they have sold them at $250. I'd never buy a Wii at $300, and I'm sure other people would say they feel the same. At $250, IMO it's a little more than I wanted to pay, but it's not too far out of the realm of "acceptable". At $300, I would've said "they're out of their damn minds".
 
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