By Tiberius Jonez
Americans have been roiling as gas prices continue to skyrocket, and it’s just one consequence of our growing recession. Now, for the first time, it seems our gaming lifestyles are taking a hit as a result of our nation’s economic plight.
Wedbush Morgan Securities’ uber game industry analyst Michael Pachter sites the weakness of the American dollar as the main reason for hardware shortages of the Nintendo Wii and the Wii Fit game.
According to Pachter, "The shortage demonstrates one consequence of the weak dollar. We're seeing companies ignore their largest market simply because they can make a greater profit elsewhere.”
It’s hard to argue with Pachter’s reasoning when we see Nintendo shipping four times as many Wii Fit games to Europe as they are to the United States. Wii Fit is priced at $90 in the U.S. while Nintendo is making the equivalent of $140 on the same unit in Europe due to the strong Euro.
In Pachter’s own words, "They (Nintendo) know that Americans will be just as fat a few months from now" when Nintendo will have more units available. That hurts Mike...sticks and stones dude, sticks and stones.
Another possible reason for the shortage is Nintendo’s own trepidation following the disastrous failure of the Gamecube. They are wary of creating too many units out of fear of being stuck with stockpiles of unsold inventory.
Another analyst, Billy Pigeon of IDC, agrees with my assessment from last week that Nintendo’s (mis) management of hardware supply could backfire on them if they can’t properly meet consumer expectations.
"That's a tough line to tread," Pidgeon said. "When does the consumer get frustrated and move on? So far, the Wii still has cachet, But the fact that consumers can't find a Wii or a Wii Fit is definitely a missed opportunity."
Will a new U.S. President after the November elections mean a possible economic turnaround and more Wii’s on store shelves? We can only hope. Get out and vote!
Americans have been roiling as gas prices continue to skyrocket, and it’s just one consequence of our growing recession. Now, for the first time, it seems our gaming lifestyles are taking a hit as a result of our nation’s economic plight.
Wedbush Morgan Securities’ uber game industry analyst Michael Pachter sites the weakness of the American dollar as the main reason for hardware shortages of the Nintendo Wii and the Wii Fit game.
According to Pachter, "The shortage demonstrates one consequence of the weak dollar. We're seeing companies ignore their largest market simply because they can make a greater profit elsewhere.”
It’s hard to argue with Pachter’s reasoning when we see Nintendo shipping four times as many Wii Fit games to Europe as they are to the United States. Wii Fit is priced at $90 in the U.S. while Nintendo is making the equivalent of $140 on the same unit in Europe due to the strong Euro.
In Pachter’s own words, "They (Nintendo) know that Americans will be just as fat a few months from now" when Nintendo will have more units available. That hurts Mike...sticks and stones dude, sticks and stones.
Another possible reason for the shortage is Nintendo’s own trepidation following the disastrous failure of the Gamecube. They are wary of creating too many units out of fear of being stuck with stockpiles of unsold inventory.
Another analyst, Billy Pigeon of IDC, agrees with my assessment from last week that Nintendo’s (mis) management of hardware supply could backfire on them if they can’t properly meet consumer expectations.
"That's a tough line to tread," Pidgeon said. "When does the consumer get frustrated and move on? So far, the Wii still has cachet, But the fact that consumers can't find a Wii or a Wii Fit is definitely a missed opportunity."
Will a new U.S. President after the November elections mean a possible economic turnaround and more Wii’s on store shelves? We can only hope. Get out and vote!
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