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November 30, 2007, 1:58 pm

Even at $600 the Wii is a must-have gift this season

By Yi-Wyn Yen

If you can’t track down a Nintendo Wii this holiday season, you’re not alone. Nintendo has not been able to keep up with the demand for its mega-hit console. Now thousands of desperate consumers who can’t find the Wii on store shelves have turned to web outlets like Amazon (AMZN) and eBay (EBAY), where they’re paying a premium to get one.

“We’re seeing an unprecedented demand for a console,” says Billy Pidgeon, a gaming analyst with IDC Research. “This is the killer gift this season. And if you’re lucky enough to get a Wii with Guitar Hero III, that would be the ultimate.”

Nintendo braces for more Wii shortage

The Wii’s popularity and shortage has not only made it harder to find, but also more expensive to buy than the Xbox 360 or PlayStation 3. Since Black Friday, almost 5,000 Wiis were sold at an average price of $420.50 on eBay and some with extra games and controllers have been purchased for more than $600. On Amazon, new Wiis are starting at $490 plus shipping. The console retails for $250. Both Microsoft (MSFT) and Sony (SNE) dropped prices for their consoles to boost sales this year. Microsoft lowered its entry-level 360 by $50 to $349 while the PS3’s low-end line retails for $399.

“Price alone won’t move hardware,” says John Taylor of Arcadia Research. “This isn’t about price or what’s available, but what people are willing to play.”

The Wii’s fun factor has made it a hit among the mass market compared to its more technologically-advanced rivals. The Wii uses a controller that requires players to simulate swings and punches to play video games. “Clearly, consumers place a higher value on accessible, fun games such as Wii Sports or Carnival than on high-definition graphics and leading-edge processing power,” says Lazard Capital analyst Colin Sebastian.

Though Nintendo increased production by 80 percent since its November 2006 launch, executives warned in October to expect a holiday shortage. Last week the company sold 350,000 Wiis, which gave Nintendo its highest one-week U.S. sales total since the console was released. Nintendo of America president Reggie Fils-Aime said that the company would not be able to keep up with demand until “early next year.”

“The challenge is in demand, not supply,” Fils-Aime told Fortune in October. “We planned optimistically for the launch, but no one could have foreseen how much more popular Wii would be than any other system in memory.”

Taylor says the best way to find a Wii without paying above retail is to contact store managers at gaming shops like GameStop (GME) or box retailers like Wal-Mart (WMT) and Best Buy (BBY) early in the week. “You want to call on a Tuesday or Wednesday and find out when the new Wiis are coming in,” he says. “Usually new games arrive on the trucks Monday night or Tuesday. If you wait to the weekend, you’ll find those shelves empty.”

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The Japanese Wii will not work with Software purchased in the USA or Europe.

Nintendo Gameboy DS is not region locked and will work with all software.

Posted By Anonymous : December 10, 2007 9:45 am

Does anyone know if the Japanese version of the Wii will work in the U.S.?

Posted By Dan, Misawa, Japan : December 4, 2007 6:14 pm

I’ve had a Wii for almost a year, and had no idea they were still this hard to find.

Posted By Anonymous : December 4, 2007 2:26 pm

Hi. Just for your UK readers, struggling to buy a Wii for Christmas - we’re pleased to announce that we currently have plenty of Wii stock at Carphone Warehouse, and are giving them away for free with contract mobile phones.

Please see http://shop.carphonewarehouse.com/?CODE=FREEWII&PORTAL=CONSUMER&URL=pay-monthly/all/?SEARCH=wii&TAG=1 to buy online.

To guarantee delivery before Christmas, you will need to order on or before the 6th of December.

Thanks, The Carphone Warehouse Online Team

Posted By CPW, England, UK : December 4, 2007 8:03 am

By the time Nintendo fills the pipe line with the Wii, something betuter will come along, and may be I’ll by something else. Nintendo…I will not pay ransom for your box on ebay.

Posted By Jon Shapiro, Greenwich, CT : December 3, 2007 8:54 pm

there’s a sucker born every minute.

Posted By John, Denver Co : December 3, 2007 4:11 pm

omg $600 r u crazy

Posted By refdgtyhrdftr : December 3, 2007 2:38 pm

yeah whatever a xbox 360 is better

Posted By mememememememe : December 3, 2007 12:14 pm

~!~I didn’t see what was so interesting about wii until I got one~!~

Posted By Suffolk Va : December 3, 2007 10:30 am

Tony:

“that’s right.. learn nothing from Sony’s fiasco with the PS3 pricing.”

Are you serious? Nintendo retails the Wii for $250. This isn’t even remotely related to Sony’s PS3 pricing. This is purely supply vs demand, with Nintendo happily making a profit with each system sold for $250. In case you didn’t know, Sony LOSES money for every system it sells and hopes to recoup the loses by selling games.

Posted By Ken, Oviedo, FL : December 2, 2007 7:30 pm

Instant gratification is childish. If you wait a month or two until the rush is over, you’ll still have a Wii and be just as happy with it - without waiting in freezing temperatures or paying twice as much.

And I agree that people should sock away cash for retirement, but they should buy toys, too; nothing says we’ll all live to see 80, or even tomorrow. Have fun!

Posted By Janna, Dallas, TX : December 2, 2007 3:37 pm

Thsnks to Fortune mag, I’ve sold 5 on Ebay and made an easy profit.

Posted By NC, Rincon, GA : December 2, 2007 2:21 pm

I luv mi wii, jealous…….

Posted By dorky, seattle, wa : December 1, 2007 9:47 pm

Jeremy, Can you buy one for me?

Posted By Neil, PA : December 1, 2007 7:26 pm

Did Nintendo pay for this ad? I can’t believe anyone would say the Wii is worth $600. What a joke. You should be ashamed of this crap.

Posted By Brian, Irvine, Ca : December 1, 2007 3:50 am

There is no supply problem with Wiis. I can go to best buy or toys’r’s down the street and buy as many as I want for $250 a piece. It’s been that way for months.

Posted By Jeremy, Tyson’s Corner, VA : December 1, 2007 2:59 am

KMaart in Lapeer, MI had them advertised on Thxgiving day. The store opened at 7 am and when I got there at 6:30, about 100 people were in line, waiting i freezings temps and snow. By the time they opened at 7, about 100 were behind me. Of course the 20 or so systems were long by the time I got to the electronics department. First and last time I’m standing in line for anything Luckily, we are getting one via a friend who has a buddy that manages a gaming shop. Can’t wait to get it. My wife cousin has one and we’ve played it a few times at her place. Our 5 year old absolutely loves it. Great game!

Posted By deure, Lapeer, MI : December 1, 2007 1:24 am

Funny. In Australia, there doesnt seem to be a problem with getting a Wii. It seems it must be just a North American supply bottleneck

Posted By gg perth Austrlalia : November 30, 2007 6:52 pm

Go on ebay yourself to see what the going rate is - it will vary from day-to-day, of course, but this article is consistent with what you’ll find there. What is most noteworthy is the the staying power of the secondary market price for the Wii. This is just a repetition of last Christmas.

Posted By AK Computer, OH : November 30, 2007 6:41 pm

I bought a Wii about 2 months ago and it stayed in the box for 25 days before I decided to keep it. Its a great system. What did you all expect? Its Nintendo; they are consistently good.

Posted By Donovan, Las Vegas NV : November 30, 2007 6:23 pm

All Best Buy stores will have Wiis available Sunday 12/2 at opening to oblige ad minimums. 18 min. per store although some stores have 60-90. Be in line early. Stores open at 10AM.

Posted By RKS, savannah, GA : November 30, 2007 6:09 pm

At least the 600 wont loose 20% in a few weeks. Those brokerage houses manipulate the market so much.

Posted By Anonymous : November 30, 2007 5:36 pm

They may foreclose on your house but you still want a Wii? What a debt ridden country!

Posted By Nik, Sugar Land, TX : November 30, 2007 5:02 pm

Check the Best Buy ads for Sundays. If it’s in the ad they should have them in stock. Now all you have to do is perhaps camp out overnight to be one of the lucky few to get them when the store opens.

Posted By John, Sewell NJ : November 30, 2007 4:54 pm

Strolled into Toys R Us store in Manhattan on Saturday before Thanksgiving and found Wii consoles stacked floor to ceiling — at the equally sweet price of $250.

Posted By Ed, Berkeley Heights, NJ : November 30, 2007 4:11 pm

This the best gaming innovation I have ever seen.
Worth even $500.

Posted By Anonymous : November 30, 2007 4:11 pm

All I want for Christmas is for millions of Americans to take the $600 they would have spent on this useless toy and stick it into their Roth IRA account so they can maybe possibly afford a hot meal when they are 80.

Posted By Gina, Denver CO : November 30, 2007 3:59 pm

LOL, Peeps really paying that much cash for one of those? In Miami, you can still get one for the right price, I saw them at Best buy the other night.

Posted By LocNar, Miami, Fl : November 30, 2007 3:39 pm

pump monkey NOT! YOU try to get one…

Posted By Ken G Tulsa OK : November 30, 2007 3:10 pm

that’s right.. learn nothing from Sony’s fiasco with the PS3 pricing.

Posted By Tony, Washington, DC : November 30, 2007 3:03 pm

What kind of pump-monkey rubbish is this? The consumer is tired and spent. Give it up.

Posted By Phil, Denver, CO : November 30, 2007 2:08 pm

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