Wii production capacity
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Jul 13, 07
Interesting excerpt about Nintendo's inability to meet consumer demand for the Wii console, full article here: Can The Wii Save Your Life?. The article also states that Nintendo has sold more than 10 million consoles in 8 months.
Q. Is the limited supply of Wiis at retail a sign that Nintendo is artificially restricting the number of units, or is this all that Nintendo's manufacturing process can bear? Is this a strategy?
A. This is the limit of our production right now. Since our business of selling hardware is not flat over the year--it goes way up around the holidays--we try to strike a balance with our parts suppliers. They'd rather have to make the same number of parts each month. Our total inventory is only 2 1/2 weeks worth of supply. A normal supply would be six weeks. Right now we're living hand to mouth, and it's not clear that we're going to get on top of that in time for the holidays.