No slowdown for Wii and DS, says Nintendo prez
 |
| Ubisoft’s Rayman Raving Rabbids TV Party will be one of 130 new games for the Wii this holiday. Courtesy of Nintendo |
By Yi-Wyn Yen
How hot is the Nintendo Wii? Even with the U.S. economy in meltdown, Nintendo may still struggle to meet demand for the third straight holiday season.
Nintendo is aggressively ramping up shipments of its popular video game consoles to avoid the shortage it faced last December. The company will increase its Wii shipment by 50% from the same period a year ago for the retail quarter. Nintendo will also bump up shipments of the DS, its popular handheld, by 10%, says Nintendo of America president Reggie Fils-Aime.
Still, Nintendo is barely keeping up with demand this year. From January through August, the company sold 4.5 million Wiis in the U.S., a 45% increase from last year for the same period.
Those figures already put Nintendo slightly ahead of analyst estimates to sell 9 million units for the year. Nintendo makes roughly half of its sales during the holiday selling season – October through December. Last year during that period Nintendo sold 2.85 million Wiis and 4.5 million units of the DS, according to NPD.
Nintendo had underestimated the Wii-craze last year. The company had to offer rain checks to last-minute Christmas shoppers and consumers often paid a 100% premium on sites like Amazon (AMZN) to get the $250 video game system.
Nintendo even lowballed the demand for the DS. Last December Fils-Aime promised consumers that the DS would be available even if the Wii wasn’t. In an interview with Fortune, Fils-Aime admitted that there was a DS shortage by mid-December. “We ran out for North American supply for the DS Lite,” he says. “Actually we haven’t lasted a holiday season ever for the DS.”
The dual-screen handheld was introduced in November 2004. A new version of the DS, called the DSi, will feature two cameras and debut in Japan in November. Fils-Aime said the DSi will hit stores in the U.S. “well into 2009.”
Fils-Aime was cautious on whether the company would be able to meet demand again this holiday. “I don’t know if we’ll be able to, but were we to get in a car right now and go to 100 retail locations in the San Francisco area, we would not be able to find a Wii in at least 60 of those stores,” he says. “Our hope is that by next week, the Friday after Thanksgiving, and on Dec. 23, you’ll be able to find a Wii.”
Analysts anticipate strong sales for the Wii despite predictions of a broad decline in spending on consumer electronics. “It will sell well,” said Lazard Capital equity research analyst Colin Sebastian in an e-mail. “The console remains in high demand, and I expect retailers will be using Wii’s to attract store traffic throughout the shopping period.”
The Kyoto-based company’s profits increased 48% to $2.6 billion in profits in its 2008 fiscal year, which ended in March. Nintendo reports its next quarterly earnings on Oct. 30.
Fils-Aime says he’s confident that both the DS and Wii will do well even in a depressed U.S. economy. “The video game industry has weathered recessionary times fairly well,” he notes. “I think a $130 DS as the big holiday gift for a child is something a parent can feel good about.” Nintendo will debut more than 200 games for both gaming platforms this fall, such as Personal Trainer Cooking for the DS and Ubisoft’s Rayman Raving Rabbids TV Party for the Wii.
“If we get into unchartered territories with stocks coming severely down and unemployment spikes, then all bets are off,” he added.
The Wii console is the first game systems, Ive owned. I had my misgivings but once I played it, I was hooked. It’s truly fun, and right out of the box. No special moves to learn or hand cramping controllers. Just plain fun. And as a plus, no annoying gamers to deal with in the software aisle or on the forums. Want proof of how most gamers behave? Then read some the preceding posts. And girls enjoy playing the games as well, so you don’t have to choose between them and playing. For those who have a choice.
I had a wii- played it for about a month. It sucks. Dont believe the hype. No one is buying games for this white albatross. It just sat there on my entertainment shelf while my 360 got most of the attention.
I have a Wii and I only have a few games for it because a good 90% of the games on it are pure craptastic, buggy, busted, broken titles. There are games on there that I never even heard of and they are just crappy titles that appeal to 6 year olds. Come on Nintendo, get with the program. Luckliy I also have a 360, PS3 and a PSP to greatly make up the difference.
Today we are shipping our XBox 360 back to the Microsoft repair center for the 4th time in 2 years due to hardware failure. As it turns out they have a 30-40% failure rate. That’s roughly 1 in 3. We’ve never had an ounce of trouble with the Wii and it’s definitely the family favorite.
PS3 FTW! Who cares if there is a “wii” shortage. Get a real console that has more uses than simply as a boat anchor.
there’s no contraversy about a shortage… its all hype to drive sales up for the system before nintendo drops the price. squeezing more blood out of that rock.
Buy a PS3, call it a day.
Sounds like George in Seattle might work for Microsoft…pixelated junk huh? The point of a video game is to have fun, ro did we forget that part? Some video games do have amazing graphics, almost real, but does that make it superior? Think about it. I’d much rather play a pixelated Wii game and have fun doing it than a Xbox 360 game with great graphics that isn’t as entertaining. You’re a typical, ingnorant A$$ when it comes to the point of playing a game!
To the poster who mentioned the shortage being convenient, you haven’t looked for one at all in this past year. They’ve been in low stock all year, not just around Christmas. The demand is just unbelievable.
It’s funny to see people get so worked up over a silly video game console. Some of you seem like you would literally bleed for your favorite system. There’s a whole world outside your living rooms with real people that you can’t kill to get to the next level. Check it out.
I like the Wii for parties or groups. Drinking can be pretty fun with the Wii. The problem is being older. Everyone has totally different schedules so it’s difficult to get folks together. Now if I’m by myself clearly the choice is an XBox.
who gives a blank about a wii shortage. This company can keep it. The global ecomony is in tanks. People are worry about how to pay for their food, gas, and their rent/mortage.
In response to RF’s post:
A supply shortage does not increase demand. Rather, it increases the market price (an efficiency created by eBay an Amazon), as suggested in the article. This higher price actually DECREASES demand for the product. Nintendo could be selling more units; a “shortage” means people want to buy more than is available. This does not increase demand, but rather destroys it.
Nintendo cannot capitalize on the higher price; they are now informally obligated to sell the console at $250 and thus miss the benefits of the higher price. From the company’s perspective, it just sees fewer units than could be sold if they satiated demand.
Nintendo’s interest lies in having their product in the stores.
Good, forget the Wii. Buy a game system that doesn’t look like pixelated junk on a real TV. Nintendo is ruining the gaming world with low quality, cheap casual games.
How convenient for there to be a WII shortage right before Christmas again. What better way to increase its demand and keep its price high by controlling its availability. Will consumers not learn anything from the current financial crisis? Stop spending your money foolishly!
“The Wii is not perfect. Lack of HD support, internal storage, a real controller, and reliability problem plague the system, as well as a overwhelming supply of crap games. (Atari 2600, anyone?) Nintendo, instead of making a real console that their hardcore fan base could buy, continues to go after a different market, as they lack the cash or the technical skill to compete with either Sony or Microsoft.”
Missing the point again. This console wasn’t made for you and you’re simply proving it. And yes, it DOES have internal storage. Is it huge? No. Does it have to be? No. Can you expand with SD cards? Yes.
Are they competing with Microsoft and Sony? No…they’re content to watch them bash at each other while Nintendo makes a console that a family can enjoy. Try Gears of War with a 5-year old and a 60-year old…it’s fun, if you’re disturbing.
It simply isn’t made for the Sony and Microsoft lovers…period. The Wii is simply not in the same demographic and comparing the 3 system is tantamount to stupidity. It’s like placing a Honda Civic in a spotlight and slamming it because it doesn’t have the handling of a BMW 750i or the acceleration of a Porsche Boxster. Stupid.
To “former Nintendo fan”:
The simple game play is EXACTLY the reason for the Wii’s popularity. I don’t have much time to play video games, so if I pick up a new video game and can’t figure out what I’m supposed to be doing. I HATE it, and pretty much abandon it right there. I don’t have hours and hours to devote just to figure out what I’m supposed to be doing, I want to just be able to pick up the game and start having fun.
what about the balance board? haven’t seen one of those in the Bay Area since May. Lots on Ebay though, thanks Nintendo.
The DSi will only have ONE camera… Not two. Get the facts straight!! Both screens will be touch screens.
hey BOB do you work for Nintendo? yeah i didn’t think so.. stuff it
hey i work for nintendo and i see wii’s all the time in the stores where i live so i don’t see how difficult it is to find one.. come on people give me a break……..
Also, people are underestimating the ‘family friendly’ experience and lower price tag of the Xbox 360, namely the Arcade variant, which sells for only 199.99. This is less than the Wii and comes with five games as well. 360’s do not have production problems, and will be the easiest to find this holiday season. Which console do you think people will be buying?
The Wii is not perfect. Lack of HD support, internal storage, a real controller, and reliability problem plague the system, as well as a overwhelming supply of crap games. (Atari 2600, anyone?) Nintendo, instead of making a real console that their hardcore fan base could buy, continues to go after a different market, as they lack the cash or the technical skill to compete with either Sony or Microsoft.
And, yes, the Wii has reliability problems; i.e. When Super Smash Brothers Brawl came out, many Wii owners found themselves shipping the console back ‘because the lens was dirty’. A dirty lens can’t read a dual-layer disk? What a crock of crap.
If the Xbox360 and Sony PlayStation were selling for 250 since launch, they’d be flying off the shelves too.
I just picked up a Wii and I love it, kudos to Nintendo I hope they have a great Holiday season
“It’s a fabricated shortage as a PR stunt. Nintendo does the same thing every year (better than MS or Sony) by not shipping enough systems and artificially creating a shortage. Then they can sell their over-priced packages online, which no one would buy if there was a Wii available in their local store.”
Jeremy – that’s not how it works. Retailers by packages from manufacturer’s at an established price and then sell it to you at a higher price. Nintendo doesn’t benefit from those who price-gouge the market because there’s a shortage. As far as Nintendo is concerned, the unit is already “sold”; they are not getting “kickbacks” from retailers who intentionally overcharge.
Also, if I could potentially sell and fabricate 4,000,000 units, but I intentionally restrict myself to 3,000,000, I’m only hurting myself in the business industry.
It’s that simple.
I bought the Wii December 23rd of 2007. It was in a Target store here and I was lucky to even find it! Since then I’ve never seen one in a store, the Wii is always sold out. I now own the PS3, which I actually prefer. Nintendo needs to increase their production of the Wii to help with the consumer demands. If this holiday season they fail again to meet those needs, then I think people will turn to the PS3 or XBox
Artificial shortages do no good. Companies LOSE money when someone wants to buy something and can’t. They would never intentionally do such a thing — they lose business, and therefore lose money.
It’s a fabricated shortage as a PR stunt. Nintendo does the same thing every year (better than MS or Sony) by not shipping enough systems and artificially creating a shortage. Then they can sell their over-priced packages online, which no one would buy if there was a Wii available in their local store.
In response to Former Nintendo Fan, the games you have listed, you are what is considered a more “hardcore” gamer. Don’t get me wrong, I consider myself casu-core, to take a term from my guild, but I personally don’t like those types of FPS games or overly violent ones such as those you list that yes, while they feature superior graphics to the Wii, are geared more for the type of gamer you are as opposed to the ones buying what you consider is the inferior system.
I could never picture many parents or older people with families buying those to spend time over the holidays to have fun however. The key to the success of the Wii thus far has been two-fold.
1) Simplistic controls. I own an XBox 360 as well as a Wii, and despite owning both for so long, I still have problems with some of the buttons on the controller. I know it’s like my old Dreamcast, but it feels just odd to me. The Wii controller however, it’s a remote basically.
2) Game selection. XBox and PS3, to a certain extent, do not have many “casual-friendly” games, meaning that yes, unless you’re more hardcore, you can’t have fun with groups of people.
This is the key to Nintendo’s success; the group appeal and the feeling that you can bond with more than you, yourself, and the TV screen.
Hey Swimmmera you suck the Wii is awesome so shut up
The first video game I ever played was Pong. I have played on almost every system invented over the decades since. I have never felt the need to buy a system of my own until a friend brought over his Wii last fall. I now own a Wii of my own, a dozen games and the Wii Fit. My family ranges in age from 8 to 73, including both genders. We play separately and as a family, the only game system to ever do that. Thank you, Nintendo! “Hard-core” gamers are not the be-all and end-all to gaming.
“Funny how Video Game Enthusiast avoids listing the other games that are not available to Wii and make a killing in sales. While those of you mock the one game to play on PS3 and X360 and continue enjoying the Wii exclusively, you are missing out on:
Oblivion, Braid, Bionic Commando RC, Fable2, Gears of War 1 and 2, Fallout 3, Dead Rising, Lost Planet, Bioshock, Halo 3, Rainbow 6 Vegas 1 and 2, The Darkness, The Orange Box, Grid, Metal Gear Solid 4, Splinter Cell, Little Big Planet, Prince of Persia, Grand Theft Auto 4 and so many more.”
Yes, these are exciting games to be sure, but look at the family entertainment that Xbox and Playstation 3 are missing out on. Very few games that you have listed are completely non-violent in nature.
The draw to the Wii is not for the so-called hard-core gamer to be sure, but Xbox and Playstation miss out on the market that has an entire family enjoying the gaming console. Many Wii games even involve competitive and cooperative gaming and it makes it fun for the WHOLE family.
Does it make the Wii better? No, but it’s targeted at a different market and it’s targeted at a larger majority of people who view the Wii as a more “friendly” and “intuitive” gaming console. Hell, even my parents in their 60s have fun with it and it’s great to see them playing with my 5-year old daughter; let me know if Gears of War works for you in bringing those two age groups together.
Please don’t take this as a slam. I would love a Playstation and an Xbox as well, but I’m not going to expose my daughter to that sort of thing. I’ll stick to the privacy of my PC where such games are played after hours and kept under lock and key.
“The comments here are posted by total idiots. I repeat, you are all idiots.
Posted By Swammiramma, Buffalo NY : October 8, 2008 11:39 am ”
Er, by wording it like that, you included yourself. So who is the idiot?
Whatever happened to playing a game because it is fun. The best graphics in the world can’t make a game fun nor can the most powerful system. The Wii is, in a nutshell, fun. That is why it dominates. Yes, Smash Bros is kinda cartoony and Mario Kart cheats more than a team with Zone Alarm playing Halo, but they are still fun. And for me, that is what makes it all worth it; graphics are just icing on the cake (Bioshock).
I consider myself a hardcore gamer, but lately I have found myself turning on the Wii more than the 360. The Wii has brought the fun back to gaming with Mario Kart, Mario Galaxy and all the games of my youth. I never realized I had stopped having fun with games until I started playing Wii more and found myself laughing.
I would like to add that hardcore gamers DO own Wii’s. I own and play on all three major consoles — XBox360, PS3, AND Wii. There is a lot to love about each one. Check out the fall game previews at any major gaming website, and you will see lots of crossover titles, and titles exclusive to just Wii. The Wii is great for kids & guests.
They can be hard to find, but in where I live, I do see them in stores on a fairly regular basis. I was at Best Buy last night and they had 12 or so, piled in a pyramid on the floor. I see them quite frequently now, but when I bought mine (last year) I had a really hard time finding one. Now don’t get me started on Wii Fit!
What a lot of people do not realize is that Nintendo made everyone a gamer, the so called “Hardcore Gamer” was only a “gamer” once.
As I saw some of the comments here “… we are 40 somethings and we play wii for hours… ” etc, at some point “you” that never played video games and now will play the Wii,and you will want more of the video games, and come to the realization that the Wii is the start-up kit for the video-game hobby, the Wii is PERFECT for people who never played video games or have young kids, but if you have been playing video games for the last 5 years, you definitely do not need a Wii.
It is in Nintendo best interest to keep the shortage, and make PR announcements about the shortage, but Nintendo knows that they will need to revamp the Wii, and they started talking about the Nintendo Wii HD, (because if you do not know, the Wii does not present High Definition Graphics).
My 2 cents.
No Nathan, I do not work for Microsoft or Sony. It would have been impressive had you the evidence to link me to them rather than simply accept that my tastes differ from yuors. By your logic to you work for Nintendo?
I own every console that comes out. I am a gamer. The reality is I find more variety, challenges, and newer experiences on my HD consoles than I do on the Wii, which is a console designed to be a throwback to older games that were simple. Those games, only have so much replayability before they become boring. The other games, have an everlasting impression on me. They are memorable.
Funny how Video Game Enthusiast avoids listing the other games that are not available to Wii and make a killing in sales. While those of you mock the one game to play on PS3 and X360 and continue enjoying the Wii exclusively, you are missing out on:
Oblivion, Braid, Bionic Commando RC, Fable2, Gears of War 1 and 2, Fallout 3, Dead Rising, Lost Planet, Bioshock, Halo 3, Rainbow 6 Vegas 1 and 2, The Darkness, The Orange Box, Grid, Metal Gear Solid 4, Splinter Cell, Little Big Planet, Prince of Persia, Grand Theft Auto 4 and so many more.
The only Wii titles that have caught my attention and that I have beaten are: Mario Galaxy, Zelda (a gamecube port!), No More Heroes, De Blob, Smash Bros 3, Mario Kart 6, Metroid Prime 3 (and Wii users accuse MS and Sony of sequel-itis>)none of which have a lasting appeal (with exception of Galaxy and Zelda).
It’s simple. There are more quality games out on the other systems than there are on the Wii. The Wii does a good job of catering to simple gameplay users. But I’ll take the Bioshocks over the 11th iteration of Mario Party any day.
Sue me.
What the hardcore gamer above doesn’t get is that there are more people out there other than hardcore gamers that love to play games. Idiot. Plenty of quality games out there for the Wii, and as soon as developers get their heads out of their rears they’ll see that they could make a mint if they just made something for the Wii.
What about the Wii Fit? Still trying to find one of those.
Oh, and you jealous thumbjockies that always post about how the Wii is not for serious gamers…. so what? If I wanted a thumbjocky machine I would buy one as I am sure many of the mom’s, families and grandparents would do.
“Former Nintendo Fan”,
You need to take a better look at what is out there before you hate the Wii. I thought the game was just cartoony little games for my 5 year old until we started to find others. There are some great games out there with awesome graphics for true gamers made for the Wii. My husband and I play the mature rated “Resident Evil: Umbrella Chronicles” and we have others as well. So if you like the console, don’t give up, just look harder for the games.
cheryl–you are exactly right. my husband and i are 40something and have never played video games. we now play the wii for hours. it is perfect for us.
Videogames always do well because more people are staying home in this economy. The Wii does twice as well because it’s not marketed to hardcore gamers; anyone can figure it out and find a game they’ll enjoy. With a lower price tag on both the console and the games compared to the PS3 or Xbox, Nintendo is going to reign this holiday season.
And as a different gamer, I’ve never liked a console more than the Wii. Growing up now, I have a lot more discretionary income and a wife. We’re able to play games together (that she enjoys, shock!) and I can still play games that are fun/difficult/mature/etc.
The only things lacking are: 1) a good network (ala XBOX 360s), and 2) nicer graphics.
The games are already there, and they are excellent. It’s strange to me to talk to other gamers who say there are no games for the Wii, yet own a PS3 and only own play Bioshock and don’t have anything else for it.
I’m 32, and grew up in the Atari, Nintendo, Sega, TurboGrafx era. I have a 360, a Wii, a DS, and a PSP. I’m still nostalgic when it comes to the older games, but I also don’t understand why the Wii continues to outsell the other systems. I’ve had the Wii for a couple of years and occasionally play it- but i t can get boring after awhile. I’m guessing it’s popular because parents are buying it for their kids so they’re not exposed to games found on other systems like “GTA IV”.
Hey Former Nintendo Fan, I agree this isn’t a true hardcore gamer’s console, but saying you don’t understand why people are buying it is just dumb on your part. People are buying it because it can be played by everyone, like Cheryl said, “moms, families and grandparents”. People who would never consider gaming have flocked to this console. User your head, in the long run, that is incredibly good for the gaming community.
The comments here are posted by total idiots. I repeat, you are all idiots.
The problem with the Wii is that very casual gamers are buying them. And then only buying maybe one or two more games a year for the console. There are few “serious” games for the Wii and only a few games actually worth buying. It IS very accessible, as I’ve had family members who have never played a game before pick up the Wii controller and be bowling in 5 minutes. And the Virtual console is fun. But as far as titles go, we’ve only purchased I think 3 games in the year and a half we’ve owned it. Most of the games are very “gimmicky” and poorly put together.
The other consoles, in particular the Xbox 360 (and to a lesser extent the PS3 due to the number of consoles that are just sitting as huge Blu-ray players out there), have a much higher attachment rate and continued sales rate, which attracts developers to put together the huge “blockbuster” titles. Also the Wii’s hardware limitations mean it just can’t handle the more complex games.
It’s a fun console with a novel control method, but it’s profits are being driven by just the sales on a fairly low margin console, and NOT by extended and continued game purchases. I know many people who bought one but only play it when some guests are over for a “party game”, the rest of the time it collects dust while the 360 or PS3 get a daily workout.
With so many stores having no stock at all, one must wonder why they haven’t “ramped up” production before now? I STILL can’t find a Wii at a reasonable price in my area, and am unwilling to buy a big package online just to get one!
I’m 41, my wife is 36, our kids are 15, 6 and 4 and we’ve NEVER owned or really liked video games, but we’re getting the Wii this Christmas. It’s not for the addictive qualities that “gamers” are attracted to. It’s just something fun for the family.
I like the bowling.
I love how the article states Nintendos plan to increase shipments by 50% on Wii and 10% on DS, yet they fail to mention what the actual numbers will be. I work at a Gamestop and last year we were lucky to see 4 Wiis ship within 2 weeks time, so a 50% increase will still be no match for the demand. We even made a daily chart for how many times we were asked if we had the Wii in stock, which averaged out to 20 times a day.
Travis, Nintendo does not release quarterly figures of shipments. In its ‘07 third quarter earnings (which ended Dec. 31, 2007), the company says it shipped 6M units from April through December to the Americas. The best gauge we have is what the NPD releases (monthly U.S. sales figures) and analysts’ estimates, which I offer in the story. Thanks for your question, and good luck with stocking more Wiis. – Yi-Wyn Yen
The wii is a great system, but I’m finding it more difficult to find new games I like. It seems nintendo is concerned more about getting systems out this Christmas instead of also getting new games out.
Cheryl, that is exactly the point. Former Nintendo Fan must work for Sony or Microsoft because they don’t get it either!
What is interesting to me is the “shortage.” Since the Wii has come out, I have NEVER seen an actual unit in any store available for sale. Every store I have been into always has a sign saying that no Wii’s are available. Has anyone actual seen a surplus of them for sale in any retail store?
See, that’s what nobody gets – it’s not the gamers that are buying Wii. It’s mom’s, families, grandparents. They’re after an interactive game that anyone can figure out in a few minutes, not intricate games with awesome graphics.
As a gamer, I have never disliked a console more than the Wii. How it continues to dominate in sales is beyond me when there’s very little quality games to play on it. I guess Nostalgia (outdated graphics, simple gameplay etc) really does sell.
You need to use different font, that hurts my eyes to read. I really want to read the article, but it’s hard.
- Nintendo Wii officially recession-proof
- Kosmix searches for a new way around Google
- Report: Former AOL chief wants to buy Yahoo
- Phone forecast calls for sales decline in 2009
- Hewlett-Packard solid, Corning shattered
- The Xbox 360’s holiday makeover
- Yahoo CEO Jerry Yang to step down
- Mark Cuban faces insider trading charges
- Silicon Valley celebrates do-gooders
- Microsoft gives Windows Live a Facebook facelift
- I just went through a nightmare with ... More
- In 1998, somewhere around there, my n... More
- Bob, I'm sure someone in your office ... More
- Guess I'll join the chorus; without a... More
- dudes..really nice discussion going o... More
- I'm so glad that we we are working to... More
- But the PS3 has better graphics, crap... More
- people just wanna forget about d bad ... More
- This link will take you to a "memo" t... More
- Dude ;;;;;;;;;;;;;;;;;;;;;;;;;;;... More
Based on my conversation this afternoon with a Nintendo America “supervisor,” I do not believe Nintendo has any plans to increase the current level of Wii’s shipped to market for this coming 2008 Holiday season. They will remain scarce, and difficult to find. Nintendo’s vaguely worded press release about increasing shipments by 50% over the prior year, without stating any firm numbers or dates, supports this conclusion. The shortage may make the Wii an “exciting” item for some consumers but, frankly, it is a turn off for me. Rather than chasing an elusive shipment on a Sunday morning at 8am, or pay a ridiculous premium to a Wii re-seller, I’d much rather take my dollars to my local Apple Store and purchase an iTouch or iPhone, and use the balance for an XBox or other gaming system.