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Nintendo Apparently Supply Constrained The Wii As Was Losing Money On Each Unit Sold

In a lengthy article GamesIndustry’s Rob Fahey says that Nintendo supply constrained the original Wii. They didn’t do this to create hype around the product, but instead they decided to do it because the innovative console was losing money on each unit sold. Fahey says that by holding back units the company waited for manufacturing costs to fall so they that would make money on each unit.

“Nintendo, for example, supply-constrained the Wii in its launch window; that strategy was not in order to create sales hype, as it was often accused of, but rather because the device was losing money on each unit sold. Had Nintendo fulfilled demand completely, it would have taken a huge operating loss. By waiting, it got to hang on for manufacturing costs to fall before supplying the demand in the market.”

 

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163 thoughts on “Nintendo Apparently Supply Constrained The Wii As Was Losing Money On Each Unit Sold”

    1. I do. It all makes sense now. I knew that Nintendo was hiding something, but I didn’t know that it would be so major. I’m one of the lucky few that got the Wii on year 1, but they made it tougher on me than it should have been. How dare they keep me from my game console! I guess this is how Sony slowly took the lead over NIntendo

        1. maybe you’re right … i thought about it … why would you build them and then not sell them because they cost too much to build?

          do they meant they slowed production of them on purpose? … that’s different than merely restricting the distribution of the product.

        1. Shut the fuck up Selina your his bitch just like Nintendo Commander Quadraxis is Valve GlaDos bitch. Nintendo for life hoe!

              1. Tallon Ridley XIII: Kalas

                Hah! You wish me & Stranga were one person, piss ant, because that would mean one less person curb stomping you & all your fellow troll friends! But thanks for the compliment, none the less.

      1. In what way does sony have the lead over nintendo? Sony is on the brink of bankruptcy, and they’re less valuable as a company than nintendo. Moreover, they do the same thing with their consoles every single generation, for the same reason. As does microsoft, and any other console manufacturer who launches a console at a loss. Fucking learn some stuff.

      2. I waited on thursday night outside my Gamestop for over 12 hours till they opened on black friday.It was 20 degrees out there.I was first in line so I knew I would get one.But they only ended up having 3 and over 50 people in line by the time they opened There was almost a riot.And the manager only made it worse by saying “we have 3 Wii’s fight it out” as he came in for the day.I would never do this kind of thing again.I’m a pretty big guy and was truly scared for myself,GF and the kids in line that had waited all night with us.I recall them asking everyone who is here for PS3 we have 2 of them and not one person wanted those.lol

        1. Lol, poor PS3 owners! Yeah, I definitely wouldn’t have done well in that crowd because I am definitely not the muscular tough type. I’m the kind of guy that gets cut in line and says “hey” halfheartedly

    2. i care …

      i think their movies are over-thought and wrong.

      the longer someone had the Wii, the more software they would have purchased.

      had someone waited to buy a wii, they may have bought a ps3 or xbox360.

      it sounds stupid to me …unless they’re trying to tell me that you don’t buy more software having purchased the wii earlier rather than later … cause if that’s true, it would mean that consoles have a shorter life-cycle if you purchase them early … like you get bored of them

      1. If you guys really are interested in this I recommend you take AP Economics in High School or Economics classes in College. It really lets you understand how and why companies behave the way they do in order to maximize profits.

        P.S. Game Theory is great

        1. the terrible thing is that it is theory … it’s not like they could have tested the launch 20 different ways to know which was best … they picked a complicated launch because some marketing math graduates told them it would maximize profits.

          they should have taken a massive loss, flooded the market and then started pushing lots of micro-payments and games.

          1. pink0crystal0midbus

            Nintendo wasn’t taking a loss with the Wiis sold in the beginning though. The guy in this article is wrong.

  1. Wow, that’s surprising. Funny thing though it was probably the slot loading disc drive that accepted two sizes that was the most expensive component.

      1. Unlikely. Neither a wise nor an original trolling attemp but keep trying… Maybe one day! Thanks for taking the time to comment.

      2. Sorry, what I actually meant was that my brain is going out of business that is why I’m becoming stupider.

      3. Wow! You must be a psychic to know this without any proof! Hey, do you think you can rub my face? Because maybe then, your powers could rub off on me and I could predict the fall of Sony, as well!

          1. Tallon Ridley XIII: Kalas

            Fact: you’re a butthurt little Nintenhater that can’t stand the fact they’ll be around a lot longer than Microdicks & Sony. Fact: Nintendo is older than Sony & Microsoft. Fact: The Gamecube was more powerful than the weaker Playstation 2 & Xbox. Now go run along, Sasori of Insults.

  2. thats why they throw more underpowered Plastic kids toys!?#LoL#Exposed#NintendronesMad#WiiFailedU#WíiScamU

      1. It’s better to ignore these type of comments. They’ll leave eventually when they realise no one cares

        1. Tallon Ridley XIII: Kalas

          True. This is one of the reasons sasori’s punk ass keeps coming back. That & he apparently likes getting beaten over the head because he apparently gets off on negative attention. Sad & pathetic, really.

  3. It was a genius move by Nintendo becuase it did both. It made it cheaper to manufacture AND it generated a bunch of hype around the console.

    Nintendo were way more savvy back in 2006 than they are now.

    1. It’s true, I honestly believe Nintendo knew what they were doing marketing wise and in terms of how to keep their finance in control WAY more than they do now with the Wii U.

      1. Nintendo know’s what they are doing, but nobody, not a soul on earth, can predict the future. Oh, and believe me, as soon as they saw the disappointed sales they started fostering a recovery plan, WHICH TAKES TIME TO MAKE, AND EVEN MORE TIME TO EXECUTE! so please stop whining about what you think you know, because you know nothing…

          1. I’m not saying Nintendo don’t have a recovery plan. I have full hope and trust that they’ll eventually turn their sales around just as they did with the 3DS.

            What I am saying is that I personally feel that Nintendo were more prepared in the release of the Wii and in managing the release compared to the Wii U. They knew how to market the Wii to gain interest and sales so that they didn’t have another console that struggled with sales similar to how the GameCube (which I also loved) did.

            It’s not really criticism or whining and I’m sorry it came across that way, it’s more just my judgement that the Wii U wasn’t really started of in the best of ways which is undeniably and mainly Nintendo’s fault, but of course they’ll figure out a way with overcoming it eventually. I mean look at the release of Mario Kart 8 and the ongoing hype for Smash Bros Wii U; both of which are constantly gaining positive hype from the media which is helping with sales!

              1. Absolutely true, and just as I said in my previous comment, Nintendo have learnt through their mistakes and are progressively improving the reputation for the Wii U.

                Now with more great First party games and implementing GameCube adapters for Smash Bros and such, Nintendo are definitely improving their status. They haven’t necessarily ‘lost’ but just started off at a bad start, but clearly it’s becoming less and less of an issue.

                1. Nintendo Commander Quadraxis

                  Someone wise said once (Me):

                  “In life, whether it’s our universe or the real one, you never stop learning…”

                  1. Our universe or the real one? Really?

                    That’s not really wise, its just obvious with a speck of stupidity.

                    1. Tallon Ridley XIII: Kalas

                      Fake Stranga indeed confirmed, Quadraxis. If the real Stranga actually does quit coming here, I see this wannabe coming here more often since he won’t have to worry about the real Stranga crushing his puny little attempts. *still thinks this guy is actually sasori*

                    2. Tallon Ridley XIII: Kalas

                      An anon thinks me & you are the same person, Stranga. It was a nice compliment, if I do say so myself.

  4. weird. still with wii and the ds they still managed to make so many billions. more than ever. and well you have to say thanks to iwata for that.

    1. It doesn’t matter what the wii is/was. It sold tens of millions, brough motion controls into gaming, and introduced many non traditional gamers to videogames. The wii was a success, even if it was “bareboned”.

      1. It brought the cancer to gaming, and introduced many casuals to videogames. The Wii is a poison, it is bareboned

                  1. I love Sasori’s big flappy lips and ashy elbows. I want to suck on that nappy hair until he screams like an ape. Then I’m going to put a banana in his wheelhouse and put on blackface and do vaudeville routines. Black face on my dick too. Black dick.

    2. and you won onw and you made let’s play videos of its games.
      if you think it is a barebone console, sell yours and buy your shitty micro$ucks xbox360!!

        1. I agree. I am hoping he cums watermelon seeds. Say, I like your style. Would you like to meet The Grand Dragon? We’ve got a spare sheet lying around and these crosses aren’t going to burn themselves, y’know?

  5. LOL they couldn’t afford a loss, since they’re gonna go bankrupt soon. Not only was the hardware weak, the only games that were out for it were casual kiddy fuck like Mario and Wii Shit. Goes to show how pathetic Nintendo is

    1. Lol. Your just mad they made a smart move, allowing them to still support the wiiu, which microsoftj ust allowed their kinect to fall

        1. Tallon Ridley XIII: Kalas

          The only one desperate is you, kid. Just like sasori, you think your opinions are facts. But continue with your bullshit, Sasori of Insults. You & sasori are probably butt buddies, anyway. Or you are sasori himself. Either way, don’t leave here. You’re amusing.

    2. Tallon Ridley XIII: Kalas

      xD Keep telling yourself that, Sasori of Insults. You’d love it if Nintendo went 3rd party, just like a good majority of Nintendo’s haters. Don’t hold your breath, kid. They have more money than you can only dream about having.

        1. Tallon Ridley XIII: Kalas

          De Nile is not just a river in Egypt, Sasori of Insults. Keep telling yourself that while you jerk off to the idea of Nintendo going 3rd party, so you can be cheap like EA & Ubisoft.

          1. Because you are just like Nintendo Commander, that which you defend you don’t even support. Fucken hypocrites.

          2. 80 millions of xbox, does not own one. gets tired of Zelda, owns posters of ALBW and the pasters can be seen on his videos.

    1. And it’s funny that your power level of butthurt is really high. Now let’s go to bed together and make hard love you naughty chocolate bar. ;)

      1. Stop using my name fucking asshole!!!
        You are fucking pissing me off!!!
        I swear if I find you I will kill you and fuck your fucking corpse and smack a stupid shit girl on her period because she complaining about is bleeding from her anus!

        1. Sorry everyone, I have torrents and schizophrenia, i have multiple personalities like Anju the 60 year old Asian prostitute

          1. Anju the 60 year old prostitute who lives in Joe Ps head

            OOOサソリは、私はMMMMあまりに彼の膣を吸うためにすっごくホットたいさ

              1. Shut up bitch, I know it’s you resorting to these fucking retarded antics! Stop it’s not funny and you are a faggot!

                1. Tallon Ridley XIII: Kalas

                  I wish it was me impersonating you, Sasori of Insults, since you’re getting so butthurt over it. But that’s not my style.

                  1. Ts actually really sad how ALL of those comments weren’t from me, dumb fuckfaces those shitholes were

        2. Tallon Ridley XIII: Kalas

          Aww. You poor pathetic thing you. Are you getting butthurt, Sasori of Insults, because he’s exposing you for the loser that you apparently are?

            1. Tallon Ridley XIII: Kalas

              Hah! Says the guy that’s getting so angry over the guy impersonating you. You failed at trying to make me think otherwise, punk.

    2. Nothing really against xbox but the truth is that some people had to buy 3 or 4 cause they kept dying…

      Don’t worry! We know you are too young to remember it.

          1. Tallon Ridley XIII: Kalas

            We need the fake sasorideidaraobi back. He was starting to get on your nerves til he vanished. A shame, really.

      1. True story. My brother bought 3 and a friend of mine bought 4. Kept burning up after warranty ran out. :/

      1. Hey I want some of that! Is there a BBQ flavored one? I like to tenderize my ass first with BBQ before applying cream, if that happens I could do both at the same time!

    3. Tallon Ridley XIII: Kalas

      And about half of them, if not even more than that, are suffering from Red Ring of Death syndrome, Sasori of Bullshit. Try again.

  6. Nintendo runs the console and handheld the industry as a brand mario is still popular to the point you can buy mario themed anything pillows shoes hats phone cases slippers megablocks and goes on and on… Nintendo is letting ms and sony battle it out as they try new things ds wii 3ds wii u all new things the gamecube was like the n64 but stronger it sold less then ps2 and xbox but look at ms and sony now trying to make it stronger each time and taking a little something from nintendo as far as controller design its all nintendo controller on xb and ps every dont deny it … whens somebody gonna release a console thats nots designed around what nintendo has already done? Never xb1 is scrapping kinect and wheres the ps move? Nintendo is still supporting the wii mote the d pad the snes 4 button layout left and right buttons rumble tilt controls dual analog sticks [Virtual Boy did dual movement options before PlayStation with 2 dpads] mic feedback control…. its keeps going. .. ms and sony contribute nothing

    1. They also contributed with the shoulder buttons on the SNES controller and I think the triggers in N64.

      Another point is that unlike many other games out there, Nintendo games are almost ‘immortal’. We only need to look at the classics to know that gamers will still be playing Pikmin 3, Mario 3D World or Zelda WW many years from now.

      How many non-Nintendo games from this time will have the priviledge of being treasured the way classic Mario, Zelda or Metroid have, in like 20 years from now? No so many.

  7. THERE SLOW WIIU START IS DELIBRATE SONY HAS NO MONEY FOR THE LONG FIGHT

    NINTENDO IS ALLOWING SONY TO RUN OUT OF CASH THAT IS OBVIOUS

    WII DID ITS JOB IT DISRUPTED THE INDUSTRY THERE IS 80% LESS GAMES BEING MADE NOW THAN LAST GEN

    wii and DS did there jobs turn the industry on its head and let the industry bankrupt its self it was the most amazing attack seen in gaming it disrupted the MS threat and desimated sony

    wii and ds made far far far more money than playstation did in all its history

    the ps3 lost more money than ps1 and ps2 ever made its like the ps1 and 2 were wiped from history

    nintendo said this would happen in 2006 they said we shall use disruption and blu ocean to win

    the indusrty now is like a post war loosing country in total devistation

    ea games addmitted 80% less games now being made by the industry company epic games addmitted 2 thirds downturn in games being made

    wiiu will own e3 2014

    sony closer to bnkrupcy than ever before

    mario kart 8 is just the start of nintendos killer blow

  8. wiiu is in TECH REALITY the only next gen system

    xbone is a pc with a pad-ps4 is a pc with a pad

    wiiu is a next gen expansive forward thinking device

    two screens -touch screen-wii remote plus nunchuck-multipul twin stick pads-advanced motion -mouse pointers etc etc etc

    sony and ms fans are IDIOTS

    1. That’s the stupidest reasoning I’ve seen just yet. Any one can take anything and deam it old. If you weren’t a fanboy and bashed everything equally then at its root you would see that the Wii U is just a home console more powerful DS.

      1. Your a fuckin idiot commonsense gamer. What a pile of shit you just conceived. Are you fucking proud of yourself for writing that or something. no.. Just No..

        1. Tallon Ridley XIII: Kalas

          Seriously. The Wii U is a more powerful DS home console? XD Talk about trying to downplay the Wii U’s power. But thanks. If the Wii U does as good as the DS did, I’ll call that a huge victory since it sold a shitload of consoles.

  9. pink0crystal0midbus

    This sooooo fake. Notice how it is the first time we have heard about this and that it is a random accusation made by someone no one has ever heard of.

    The Wii was so cheap when it launched and the tech was not even that incredible, there is no way they were losing money on each Wii sold in the beginning… it’s just not possible.

  10. I don’t know…doesn’t seem like something Nintendo would do…Especially with the Wii U being at a loss as well. So by this guys mind set if the Wii U was selling as well as the Wii then Nintendo would have done this again?

  11. The Wii was NOT being sold at a loss. This guy is full of it. Coming off of the GC that sold poorly Nintendo was not prepared for the demand, plain and simple. Once they were caught up the Wii was flying off shelves and won last gen console war. The Wii U, PS4 and Xbone will all sell considerably less than previous gen. It isn’t about any faults of the systems or manufacturers. It’s about economics and move to mobile.

  12. Tallon Ridley XIII: Kalas

    If this is true, this news isn’t bad AT ALL. In fact, if this is true, it not only saved Nintendo money in the long run, but it also built up hype for the console. This news, while the title tries to make it sound bad, is actually great news; if true, anyway.

  13. Not true.
    He’s pretty much the only analyst (afaik) to say Nintendo was losing money per Wii during launch window. BillOfMaterial estimates says Wii cost around $160. Fils-Aime even said Wii wasn’t a loss-leader.
    Also, the “constraint supply to build hype”-thing doesn’t make sense.

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