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View Full Version : Reason for Wii Shortages


Khaos
04-14-2007, 07:23 PM
Came across this (http://www.digitimes.com/systems/a20070328PD220.html):
Shakeups expected in Wii and Xbox 360 supply chains
Yen Ting Chen & David Tseng, Taipei; Esther Lam, DigiTimes.com [Wednesday 28 March 2007]

The game console component supply chain may see some shaking up in the near future, with more partners expected to produce the Nintendo Wii, and Microsoft expected to adjust its supply chain amid the launch of its Xbox Elite, industry sources indicated.

Sole reliance on Foxconn Precision Components (FPC) for assembly of the Wii appears to be insufficient to meet persistent strong sales of the game console, according to the sources. In order to guarantee smooth shipments, Nintendo is now looking for one more manufacturing partner, with Asustek Computer, Compal Electronics, Inventec and Wistron aggressively striving to land the partnership, the sources noted. ODM and OEM makers including Mitac International Corporation (MIC) and Quanta Computer, however, do not appear to be candidates.

Among the mentioned players, Asustek and Wistron assemble the Sony PlayStation 3 (PS3) and Xbox 360, respectively. Asustek has accumulated revenues of NT$51.4 billion through February for its 3C goods.

According to Nintendo's latest financial statement, the game console vendor had accumulated shipments of 3.19 million units through the end of 2006. For the first two months of this year, Nintendo has already shipped 771,000 Wii consoles in North America, compared with shipments of 522,000 for the Xbox 360 and 371,000 for the PS3, according to statistics from NPD Group.

Other changes in the game console supply chain may be seen for the production of the Xbox 360. With the launch of Microsoft's Elite version, the company is preparing to reduce prices on other Xbox 360 models and has expressed its wish to reduce quotes from its three major assembling partners, namely, Celestica, Flextronics and Wistron. If any of these players seems disinclined to accept the lower quotes, there could be some shakeups in that supply chain as well.

Bolded parts are mine. Well, atleast those supply and demand, on-purpose rumors can be squashed once and for all.

Bowser
04-14-2007, 08:11 PM
When the contract for this is settled, the winner is going to have one hell of a celebration.

Mr. Coww
04-15-2007, 12:28 PM
Nintendo might as well just get money printed inplace of the Wii. I still know alot of folks dieing to get one which is funny its nearly half a year into it life.

Viper
04-16-2007, 03:17 AM
No console has ever been 'sold out' globally this far into its life cycle. On top of that, it's selling faster than just about any console ever has as well. One can only speculate how high sales could be if supply could match the demand.

Bowser
04-16-2007, 04:13 AM
@Viper. Yeah. The longer that PS3 goes without any real brand recognition, the more difficult it is going to be to establish themselves in the customers. Once the Wii hits ten million units sold, it is going to be game over for Sony. As far as I am concerned, Sony will be dead last. With sony officially out of the running the focus will shift towards the race for first. It should be interesting to see how things unfold.

Cofey
04-16-2007, 04:44 AM
If it does come down to Microsoft and Nintendo competing for first, I really think Japan will push Nintendo far ahead. The sales comparisons between Wii and 360 in Japan aren't even funny...Wii is just blowing 360 away. No real surprise there though.