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Retail Pre-Order Sell Outs Not Conclusive That Wii U Will Be A Success

Colin Sebastian of R.W. Baird is under the impression that Nintendo likes to create the perception that their system is under demand by managing their distribution channel. Sebastian says that the problem Nintendo faces is under-supplying the market so that Christmas shoppers decide to purchase an Xbox 360, or PlayStation 3, instead of Wii U.

“Nintendo tends to manage the distribution channel to generate some sort of perception that its [system] is in demand. I think seeing these sellouts on some of the websites is not a negative indication. It’s either neutral or slightly positive, but it’s not conclusive. What’s most important for Nintendo is what happens at launch. You want a combination of as many units as possible, that are also perceived to be in short supply, but you don’t want to under supply the market so people go out and by something else”

 

110 thoughts on “Retail Pre-Order Sell Outs Not Conclusive That Wii U Will Be A Success”

      1. The article implies that people will go after other consoles at the time they go to purchase the sold out Wii U, and they will therefor not purchase the Wii U.

        The Wii sold out during its Holiday launch that it shared with the PS3, with the 360 out a year ahead of them.

        And the Wii sold more, some buying it later in addition to their PS3 or 360.

        So how about you get educated before you turn your computer on again?

        1. Um…. okay, you read the article…. but did you understand it?

          I mean, this guy is very much right. If nintendo doesn’t supply enough consoles, than being sold out for christmas means…..well, people will have NO CHOICE but to buy something else.

        2. Erm actually that’s not true, the Christmas when the Wii sold out was a year after launch. Whilst I won’t deny that the Wii sold well, the primary reason for it selling out was that Nintendo didn’t anticipate the level of demand and so didn’t prepare accordingly. But what he said was true. Some people will see that the Wii U is sold out and maybe wait for it to be restocked, getting late gifts. Other people aren’t thinking as much about the console, but about giving a gift to someone for Christmas, these people will see that the Wii U is unavailable and buy something else instead with no second thought. I guess it’s the difference between a child telling their parents they want a Wii U so the parents wait until it’s restocked, and the parents deciding to but their child a game console. Seeing the Wii U and deciding to get that, and finding out that it’s unavailable so buying something else. People have different priorities, yes some people will wait, but others will settle for something else, and we’re not all rolling around in cash to just buy both

    1. I have to agree, id rather say I sold 5 million and there are some on the shelf than say I sold 2 million because we didnt supply enough and parents buy ps3 or 360 because they need to buy something and an IOU doesn’t go over well with kids that have nothing on christmas morning.

      1. Haha, when I got a Wii for Christmas like 6 years ago, I didn’t get it for two months after Christmas. Not complaining though– it was worth the wait.

  1. this is just ridicoulous lol what do you say about WiiU selling out at gamestops NATIONWIDE!!!! YEAH THAT REALLY JUST HAPPENED! LOL

    1. …That “Nintendo tends to manage the distribution channel to generate some sort of perception that its [system] is in demand. I think seeing these sellouts on some of the websites is not a negative indication. It’s either neutral or slightly positive, but it’s not conclusive. What’s most important for Nintendo is what happens at launch. You want a combination of as many units as possible, that are also perceived to be in short supply, but you don’t want to under supply the market so people go out and by something else”

      1. By the way, Nintendo is a JAPANESE company… They have much PRIDE in their work… If you ever visit Japan go to Mcdonalds and see how much pride they take into making the burgers and fries look exactly like they are in the picture… Japanese people have a lot of pride and take honest pride in everything they do for the most part… And people want to say they are pulling american stunts… smh… Just because you have busniesses in AMERICA that put up false numbers to get a buzz going does not mean everyone in the world does it… smh… people who get their light bulbs from article are just pure regurgitating retards… When the wii came out No one could get a wii… It took me 6 months until after the wii was launched to be able to get a wii because it was sold out everywhere and the places I would go to would be sold out by “lunch time”… smh… children who think they know it all…

        1. “They have much PRIDE in their work” Nintendo YES but not every Japanese business does. I to have been to Japan and numerous times so don’t try and come off like its perfect in anyway. If it was my Sushi experience would have been much better.

          “Just because you have businesses in AMERICA that put up false numbers to get a buzz going does not mean everyone in the world does it”
          Same goes for everywhere else. Just because you haven’t seen it doesn’t mean it doesn’t happen. You generalize and stereotype alot.

          and mu favorite: “children who think they know it all…”

          RIGHT BACK AT YOU!

          1. I have been to Japan (southern) myself and yes they do take pride in what they do. Their local corner stores are way cleaner with better items sold than most big chain store here. I’m not kissing up to them but just speaking from experience also. Just look at how most Japanese cars are, you rarely see them on the side of highways like American cars. Just sayin’.

            1. LMFAO these american cars thdt you see are japan imported XD I kid of course

              You know for pride, Toyota, Honda, and nissan all had recalls on these cars that they put so much pride in making, maybe that’s why you don’t see them pulled over on the street XD you ignorant stereotypical stereotype XD

              1. Lmao at this dummy. Atleast they recall if they find it not 100%. Unlike American shit cars that break down once the warranty runs out. Another example of your typical business is 360 rings. And you wonder why they cars bound to go out of business. Fuck, call me a stereotype, but I ain’t dumb like you to keep supporting that false shit XDDDD

        2. I remeber when the wii came out, I would go to my local Target store in Los Angeles (I live in chicago now) and id ask them for the Wii and they tell me that they only get 8 to 10 a week. Now you tell me, how do you supply the demand in a huge city in L.A. like that?

    2. The fact that they sold out in less than a week for the deluxe edition doesnt sound sketchy to you? I mean they had to have given a really short supply of those considering the normal one is still available. I doubt there are hundreds of thousands of people ready to drop 350 instantaneously.

      1. Fair enough, but diehards knew this was coming. I started a Wii U fund over a year ago. This announcement should not have caught any Nintendo fan off guard.

        1. Exactly! We all knew this would happen again. I started saving this summer and I’ll have the money by the time the system gets here. Pre-order is done along with three games. To those who hasn’t pre-ordered: Good luck :)

    3. And WalMart, target, toys r us, I had to settle for a white one.
      And why the hell would people just now be buying a 360 or ps3

      1. Indeed, I think that at this point in the console cycle gamers have the system/systems they want. They said Nintendo was doomed when the Wii stopped selling. Well duh! It has sold almost a hundred million copies! How many more could want it?

  2. Believe it or not, not many people know that a system is more powerful than the next if they don’t have the urge to look it up themselves. But since it’s Nintendo and we have media that can confirm things, they’ll have to be stupid not to know. And the fact that the PS3 and 360 are dated systems, I can only predict Nintendo’s success.

  3. Granted, high pre-orders are not a 100% guarantee that a system will be a success. What we do know is that the Wii U is off to the best possible start, and that has to count for something.
    As for the suggestion that Nintendo artificially creates a shortage…come on, seriously? At most, you can criticise them for playing it safe…however, it’s not like Nintendo can easily have tons of Wii U units ready for launch day – from a business perception, it doesn’t make that much sense, and it’s not very feasible either

    1. Its a sneaky smart business move. If true. For Christmas patents gravitate to the hard to get items. Not even knowing what they are necessarily! But it must be good if it’s sold out

  4. Lets overthink things shall we and star accusing everyone of indoctrination and deception .

    The wiiu is doomed . to be one of the most successfull console’s of all time . Nuff siddily diddily said .

      1. Actually, it can.
        And if you think about the fact that basically every PSVita owner also owns a PS3, it’s not really for twice the price. Nobody buys both of the systems just because of the cross-play/cross-control feature. But, if one owns a PS3 already, they do have many options of what they can do with the two systems. Then they own a home console, a handheld system AND cross-control + cross-play, including many things the WiiU can do and can not do.
        I probably wasted my time writing this comment because a narrow-minded fanboy like you won’t be able to accept those facts anyway… But why not give it a shot ?

        1. Sure, except that no one in the world has a damn Vita, which is infact selling at Dreamcast levels. And you don’t get it along with the ps3. And, dat lag.

  5. If someone wants a wii u and have the money I doubt their going to buy something else. I sure wouldn’t give up like many did trying a ds at launch.

  6. Why is it, that there are ALWAYS negative articles about Nintendo?! If they would make a console, which shows graphics like “Avatar”, gets every freaking games plus a bunch of exclusives, all that with a price of 300$, these people would still complain, that the graphics aren’t exactly photorealistic and that it wouldn’t do the laundrey for them!
    It’s pathetic :/

    1. People didn’t complain too much before the wii was released. And you have to admit that this article has a point. This system is going to be launched RIGHT before the shopping season and they’re “out?” That’s going to be a problem, especially for parrents doing christmas shopping. The parrents need to find SOMETHING. So if they can’t get a wii-u, they’ll get the ‘next best thing.’

      1. Ok, it’s not Nintendo’s fault they are sold out. People remember how good Nintendo really is. Just because the buy America media is biased does not mean people are dumb.

  7. This article is not worth posting… The wii U will sell no matter how they feel about it… Nintedo asked folks to take the surveys on the nintendo website for a reason… I guess they feel like nintendo is SONY or someone… smh…

      1. Implying you know what it is. Wonder why you shut up immediately after I have a go at you for other stupid things you’ve said and clearly can’t weasel out of.

  8. This argument has logical strength, But I do not think it is sound, mainly because the first premise is debatable. (Nintendo tends to manage the distribution channel to generate some sort of perception that its [system] is in demand.) I don`t know that this is true, sure it happened with Wii, but what do you expect, that system was selling more units than carter`s got pills. All that being said I do think the conclusion of this argument is true. (What’s most important for Nintendo is what happens at launch.) I hope the average consumer, or people like me who haven`t decided yet, will have the ability to pick up a basic Wii U before the holidays.

  9. There are many tactics to try and increase demand, but you can’t just magic demand out of nothing.

    Case in point, the 3DS did not sell out for more than a brief period of time during it’s launch, and within a couple of weeks you could walk into any store and walk out with a 3DS without an issue. The 3DS then suffered low sales until they cut the price. If Nintendo could manufacture demand as easily as this guy is suggesting, then that would not have happened to the 3DS.

    On the other hand, they were selling Wii consoles as fast as they could make them for 6 entire months after launch, and then had similar problems the following Christmas season, and then again at the launch of Wii Fit. I find it hard to swallow the argument that this was manufactured demand simply due to how long it lasted, and how it came and went again and again.

    It remains to be seen how long the Wii U will see high demand, but Gamestop and others selling out of pre-orders is a good early sign. But it is still inconclusive.

  10. WOW. People are taking this as an attack toward Nintendo? it’s not in any way. This really does pose a problem. Although to be fair, the whole bull shit with China may be to blame for the lack of units.. but we’ll see if they’ll allow more orders.

      1. I find them amusing.And 3ds blog has gotten boring.Maybe if they go there things would get spiced up.Just kidding (but i do find them amusing)

    1. Why do people still buy Wii’s? I never had a 360 at all until last December. Not everyone has that particular console yet. I want to buy that new PS3 slim for my dad and my lil brother at christmas, all they got is a Wii, that no one seems to play anymore. I think my lil bro finaly got bored of smash bros.

  11. I agree to his perspective on the subject, but I don’t think it’s 100% true. Not that I think he’s bashing, it’s just that his vision might be wrong, which I believe to be. Thousands of Wii U’s being sold out in every store before the launch date and the stocks not coming up, for me, mean one of the two bellow:
    1-) Nintendo underestimated the pre sales. Now they’re making more Wii U’s to distribute to the retailers, but they won’t give word of how when, at least this month, because they want a bigger number than last time, given how much fast the stocks depleted, and to make sure people have access to it from launch date onwards, giving people chance to buy it out of pre-orders.
    2-)The number of pre-order sales and the time it took to sell out gave Nintendo everything they needed for pre sales, and now they’re keeping everything for buyers who will go to physical stores buy the console.
    Either way, I don’t think that guy is bashing Nintendo, but I think Nintendo won’t just stay still as he thinks it is.

  12. read the entire article he is not bashing Nintendo.. He evens states it will sell. But is saying that Nintendo needs to make sure they dont limit product on market to make it seems sale are in demand.. because guess what if its not there on the shelf to buy ..people will buy something else or realize they dont need it.

  13. The store owners themselves stated the Wii U was in high demand. I don’t think it’s Nintendo that’s doing it on purpose. Stores know when something is popular.

  14. Though it is true that it in no way means it’ll be a successful console, it’s definitely a good start. I don’t see it failing. It’s got a Mario game to kick it off, which was definitely a smart move for Nintendo. Let’s just hope it still does well.

  15. This is exactly what I’ve been thinking the whole time. I couldn’t agree more.
    Additionally, I do think that the PSVita ran out of preorders as well back then… Now, weren’t you fanboys the ones who were laughing at it for its “poor” sales ? Well, I wonder how you’ll try to turn that into a positive thing when it happens to the WiiU as well. (:

        1. Oh my god! someone else who is not blinded by nintendo fanboyism or hatred! :D

          I don’t know who you are Kairi, but you’re my new best friend :3

    1. There is not trying to “turn it around.”

      WiiU will sell, or it won’t.

      You won’t see Nintendo fans so depressed with their life that they have to go trolling everyday like AEOLUS, NESS and ALL THE REST.

      1. Yes, nobody will see Nintendo fans do that. But fanboys do it. They try to make everything about Nintendo look positive, even if it’s obviously not the case (not really referring to this issue, just in general).

  16. True. It would be ashamed to end up like the Vita. Huge launch, then fell over dead.

    Let’s hope WiiU doesn’t end up like that.

  17. Does he think that people are stupid? If some one goes to a store to buy a Wii U and there are no left then they will go home or to a nother store, not buy an eight year old console.

  18. Nintendo has to be aware of the pre-order sell outs so I would think that they’ll ship out more units for holiday shoppers who didn’t pre-order. It makes sense.

  19. if you really want the wii-u deluxe or basic go travel to nintendo world store in nyc there still taking pre-orders on both models

  20. It doesn’t make any sense to say that the Wii U preorders selling out is not a sign of success. That is like saying just because your team scored the most points in a football game, doesn’t mean you won.

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