Showing posts with label Wii shortage. Show all posts
Showing posts with label Wii shortage. Show all posts

Friday, May 30, 2008

Nintendo alienating consumers with supply mismanagement


By Tiberius Jonez

Before Nintendo launched the Wii they promised the console would expand the videogame market to previously untapped consumers with an easy, low-stress, user-friendly experience. Fast forward nearly two years later and the Wii experience is anything but stress-free. Angry consumers are being confronted by “sold out” signs at retailers instead of Wii Fit and Mario Kart games.

Nintendo’s hardware and software supply problems following the Wii’s launch have persisted for so long that what was once perceived as the result of unexpected success is now being recognized as an inexcusable mismanagement of the companies supply chain.

Rob Fahey of gamesindustry.biz has written a fairly scathing, but accurate, editorial about Nintendo’s negligence toward their newly found consumers. Essentially telling Nintendo if they want to be the market leader then they need to stop acting “like an overgrown cottage industry” and more like “the vast globe-spanning corporation it has grown to become.”

I have to whole-heartedly agree with him. Nintendo has a long history of inflexibility and straight-up hubris that once cost them the huge hardware advantage they held with the NES and Super Nintendo before the birth of the original Sony PlayStation. From inflexible licensing agreements to unwillingness to adapt to their own growth, Nintendo has repeatedly demonstrated a disregard for the very customers they are so proud of having garnered.

At some point the demand Nintendo thinks they are creating by holding back hardware becomes a backlash against their product with the end result being money left on the table that could have gone into the corporate coffers.

Wednesday, March 28, 2007

Gamestop exec says Wii shortages are intentional




Have you been trying to get your hands on a Nintendo Wii only to be met with empty store shelves? You're not alone, and now we may know why. We live in a supply and demand world...when supply is high and demand is low, prices drop. When things are reversed we see $10,000.00 PS3's on Ebay.

That's why it's hardly a surprise to hear R. Richard Fontaine, CEO of GameStop, saying that his company's profits may be about to ride the crest of "a cycle on steroids."

Fontaine believes Nintendo is about to release the floodgates on the Wii supply drought -- a drought GameStop feels may be the result of a well played Nintendo supply-and-demand strategy. Gamasutra has an article up at the moment in which a few statements made by Fontaine and other GameStop executives are quoted, directly following an investor-level financial reports conference.

GameStop's COO Dan DeMatteo also made the following statement to the press: "I believe that next week we get our first allocations of Wii and DSs and we are quite pleased with those numbers. We were concerned about the dryness here in March, but it looks like April is going to be good. [...] I don't think [more shortages] are going to be an issue...and this just my opinion, but I think [Nintendo] intentionally dried up supply because they made their numbers for the year. The new year starts April 1, and I think we're going to see supply flowing."

This is good news if you're looking to get a Wii next month, but is it good for the industry as a whole? These kinds of strategies can cause distrust and sometimes result in lost customer loyalty. If these reports are true Nintendo is walking a fine line between smart economics and poor public relations.

Do you think it's okay for Nintendo to intentionally hold back consoles just to make their fiscal year look better?