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NoA: Wii U price response is "phenomenal". More consoles at launch than Wii

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nickcv

Member
http://www.stumbleupon.com/su/2ZKQW...i-u-deluxe-set-selling-out-incredibly-quickly

"All I can say is that the response has been phenomenal and we're getting, especially in the higher priced deluxe set, that one's selling out incredibly quickly. That seems to indicate that the pricing's in a good spot and the proof is in the consumer response," Moffitt remarked in an interview to be published in full tomorrow.


"Certainly we've seen brisk pre-sales and that the phone calls have been coming into our headquarters for quite a while now asking for more and so we do expect high demand. But I can tell you this - on opening week we will have more systems on hand for the Wii U than we did for the launch of Wii. And, second, our replenishments will be more frequent this holiday time than during the Wii launch," Moffitt noted.

in before artificial shortages
 

Miles X

Member
Interesting, they're forecasting 5.5m end of March, but Wii did 5.84m, yet they expect more this holiday season? Either they're underestimating or they're getting more of that Q1 stock in this holiday.
 

nickcv

Member
Interesting, they're forecasting 5.5m end of March, but Wii did 5.84m, yet they expect more this holiday season? Either they're underestimating or they're getting more of that Q1 stock in this holiday.

maybe they just placed differently their stock, sending more to the USA.
 

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
It begins.


People don't actually believe this nonsense right? I mean, right?

I've been stunned at how often I've seen this idea both here and at CAG. It's ridiculous.
 
Nintendo did price the 3DS based on 'responses' :p
I do think their surprised at how many people are willing to pay for the best version despite the price though.

Good to hear the replenishment rate will be good. I think thats the main thing that changed post 2006; just sorted out their production, stock and delivery to a tee. Its a flow now.
 
Interesting, they're forecasting 5.5m end of March, but Wii did 5.84m, yet they expect more this holiday season? Either they're underestimating or they're getting more of that Q1 stock in this holiday.

Or demand has been higher than expected and they will need to re-forecast?
 

PhantomR

Banned
Pretending that the Wii shortage wasn't intentional...


facepalm.jpg
 

Karuto

Member
To give an impression that it is an extremely hot item. That way, it creates that demand that spreads out for many months. It's the law of supply and demand, as any Marketing student would know. As supply goes down, demand goes up. As supply goes up, demand goes down. It's intentional.
 

Chiggs

Member
Good to know that the stock is decent; although, that certainly puts a damper on those trying to sell it for a grand on eBay.
 
Why wouldn't they create a shortage? It increases demand.

It's like the first thing you learn in any economics class
Do you know why increased demand is helpful for a business? It means they can increase prices.

A console has a MSRP, and it's not going to go up. Nintendo sells their systems at a constant rate, they don't benefit at all from people selling their system on ebay for a thousand dollars.
 
To give an impression that it is an extremely hot item. That way, it creates that demand that spreads out for many months. It's the law of supply and demand, as any Marketing student would know. As supply goes down, demand goes up. As supply goes up, demand goes down. It's intentional.

So the fact there were more wii produced/shipped during the launch period than any other console means nothing to you?
 

iammeiam

Member
Shortage = Manufactured to make people seem interested when obviously they can't be because LOLtendo

Shipping more to stores than previous console, which suffered massive extended shortages = Making excuses for consoles on shelves, since obviously nobody wants to buy them

Nintendo can't win here.
 

omonimo

Banned
Ok, now nintendo PR start to smell like sony PR... there isn't nothing of 'concrete' to claim something like this, really.
 
The idea that companies create intentional shortages to fan the flames of demand is ridiculous?

Not sure if serious but there are hard cold numbers to counter all that nonsense. You know silly things as needing to build additional factories to ramp up an production line whose rate was higher then any other video gaming consoles up until now.

But sure, the truth is out there, yada yada.

Fuck this, gonna go play some games before tonights football game.
 

nickcv

Member
Shortage = Manufactured to make people seem interested when obviously they can't be because LOLtendo

Shipping more to stores than previous console, which suffered massive extended shortages = Making excuses for consoles on shelves, since obviously nobody wants to buy them

Nintendo can't win here.

you learn fast, my friend.
 
Do you know why increased demand is helpful for a business? It means they can increase prices.

A console has a MSRP, and it's not going to go up. Nintendo sells their systems at a constant rate, they don't benefit at all from people selling their system on ebay for a thousand dollars.

If anything they're slightly harmed by it, if someone buys a console at a stupid mark up on eBay they have less money left for games and accessories
 

Mondriaan

Member
Do you know why increased demand is helpful for a business? It means they can increase prices.

A console has a MSRP, and it's not going to go up. Nintendo sells their systems at a constant rate, they don't benefit at all from people selling their system on ebay for a thousand dollars.
The shortage was a huge marketing boon for Nintendo. They had incredible amounts of benefit from that.

It's probably more likely that it was a happy accident rather than being anything intentional, though.
 
Why wouldn't they create a shortage? It increases demand.

It's like the first thing you learn in any economics class

While that may be true, it's a bit different with consoles. For every unsold system, there are also unsold games. Although Wii was a rare example of a system being sold for a profit at launch (especially lately), Nintendo still stood a lot more to gain from front-ended console sales. The longer a person owns a system, the more chances they have to buy games for it. For a console maker to intentionally cause shortages for months would be incredibly stupid and short-sighted. It's possible that they wanted to have SOME supply constraint near launch to avoid the bad publicity of having lots of unsold product on shelves, it's pretty ridiculous to think that they intended to turn away lots of customers for months. I think the main reason for the shortages is simply because they were trying to play it safe and anticipated that they could very likely be the bargain/casual option to the other 2, which can be a pretty unreliable market.
 
Shortage = Manufactured to make people seem interested when obviously they can't be because LOLtendo

Shipping more to stores than previous console, which suffered massive extended shortages = Making excuses for consoles on shelves, since obviously nobody wants to buy them

Nintendo can't win here.

This. Best part is, we got BOTH those responses (in seriousness) in the first few posts.
 

Kai Dracon

Writing a dinosaur space opera symphony
Intentional shortage conspiracies and Nintendo seem to go hand in hand. This shit's been going on for 30 years.
 

Tagg9

Member
The shortage was a huge marketing boon for Nintendo. They had incredible amounts of benefit from that.

It's probably more likely that it was a happy accident rather than being anything intentional, though.

Exactly. For it to be intentional would imply that Nintendo knew what they were doing. I doubt they had that much foresight.
 

Mpl90

Two copies sold? That's not a bomb guys, stop trolling!!!
We've laid this theory to rest conclusively years ago. Get yourself up to speed before participating.

I hope Jousha answers my call. I've summoned him, he needs to appear with that graph.
 

freddy

Banned
Good god, calm the fuck down. It's a joke.

HAHAHAHAHA I KNOW, JOKES ON THE INTERNET RIGHT?!?!?! LOL

I'm calm. You're the one typing all in caps, man. Stop screaming at me!!

If anyone else has a bone to pick send me a PM so you don't derail the thread ;)
 

Raven77

Member
Regardless of if they "ship more frequently" they will send like 5-10 to select stores and they will be sold out before the poor pimpled up kid can walk half way to the gaming section with them.

Mark my words, MARK THEM!!!!!!!!!!!!

My friend Josh is pissed.
 

Michan

Member
Interesting, they're forecasting 5.5m end of March, but Wii did 5.84m, yet they expect more this holiday season? Either they're underestimating or they're getting more of that Q1 stock in this holiday.

More frequent replenishment does not necessarily mean more total units. A replenishment of 0.1m units each week is more frequent than 0.25m every two weeks, but a smaller total amont.
 
It's like the first thing you learn in any economics class

...Says someone who's never been in an economics class ever.

In economics you weigh the pros and cons of situations to decide what will make you more money. And what will make you more money? Temporary inflated demand while cutting into your profits (remember, for every unsold consold console, you are liking losing 1-2 game sales additionally up front, and likely several more over the life time of the console. The earlier hardware is adopted, the more sales for that hardware over it's lifetime)? Or making sure demand is met on the hardware so more software is sold?

The Wii was a happy accident... The controller promised a means for people who don't like to play games to finally have a system with physical activity they might enjoy. Wii U makes no promise and isn't likely to hit that gold mine again and Nintendo of ALL people knows this.

What you're thinking of is a MARKETING class, and marketing honestly doesn't give a f*** about economics because it's all about fantasy. Drumming up interest in demand where there isn't really a need for either.
 

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
Good to know that the stock is decent; although, that certainly puts a damper on those trying to sell it for a grand on eBay.

So, two pieces of good news?
 
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