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Analyst: Hardware Supply Constraints To Hit Holidays?
Analyst: Hardware Supply Constraints To Hit Holidays?
Gamasutra - October 31, 2007
Submitted by Just_Ben (112) at 11:22AM PST on October 31, 2007
Analyst Colin Sebastian is stating that hardware supply constraints and lower pricing for PS2 and Wii software may pose health risks for the industry's sales numbers. "Holiday hardware demand may outstrip supplies," Sebastian said. "We believe one of the themes from the holiday period could be hardware supply constraints, driven strong demand for Nintendo’s Wii and a shift in Xbox 360 unit sales from 4Q into the September quarter, while Sony’s PS3 and PSP may benefit from lower price points."
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1Just_Ben posted on Industry News at 8:34AM PST on November 2, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@pilias_simber,
Yes, to produce more you just have to turn of a switch and there is more.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
1pilias_simber posted on Industry News at 7:38AM PST on November 2, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@Just_Ben,
They weren't producing 1.8 million Wiis till mid october (about 2 weeks ago) which is right when we saw the massive jump in Wii sales as well.[ Oracle ] [ Level 22 ] [ Rank: 122 ]bids
1Just_Ben posted on Industry News at 7:23AM PST on November 2, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@pilias_simber,
Yes, but not in previos Month. To be honest, I don't have time this weekend to digg all this info out, but as far as I know Nintendo haven't shipped everything they produced.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
1pilias_simber posted on Industry News at 7:17AM PST on November 2, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@Just_Ben,
What? Where are you getting your numbers from that say the Wii is not shipping 1.8 million. Didn't they JUST announce the increase this month?[ Oracle ] [ Level 22 ] [ Rank: 122 ]bids
1Just_Ben posted on Industry News at 6:45AM PST on November 2, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@pilias_simber,
Don't ask for a link, but Reggie said that they don't want to face a complete supply disaster like last Christmas. And it ends up with calculation. Nintendo should produce 1.8 Million+ Wiis for some month now, but they didn't ship that many. Either there gone, or they stockpile.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
1pilias_simber posted on Industry News at 4:08AM PST on November 1, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@Joe80,
Even in that he follows it up, just like in the source I was looking at, with a qualifying statement for "unprecedented" by saying it will be substantially more than last holiday season. I think it's theoretically possible they have a stockpile laying around, but I have a feeling it's not going to be very large if they do, this looks more like a PR stunt to cover Nintendo when there is a buying frenzy this Christmas and people trampling each other over Wiis.[ Oracle ] [ Level 22 ] [ Rank: 122 ]bids
1Animate posted on Industry News at 7:34PM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@pilias_simber,
Depends on where we get the information from, according to Kotaku Reggie did say "unprecedented", I submitted this article (scroll down) a long time ago. I didn't listen to the podcast, but that would tell us for sure exactly what Reggie said in full.[ Oracle ] [ Level 26 ] [ Rank: 241 ]bids
1pilias_simber posted on Industry News at 1:16PM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@Just_Ben,
No I'm reading what Reggie actually said, not the Jazzed up version your source wrote. He does not promise "unprecedented" numbers, he promised more than last year, thats it.[ Oracle ] [ Level 22 ] [ Rank: 122 ]bids
1Animate posted on Industry News at 1:15PM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?I think Nintendo has increased production for the months of NOV & DEC, and has also put aside a small amount of Wii's made per week to have a greater number available for the holiday months. They know that the holiday means people shopping for a wii as a gift and if they can't get it they may opt for another system. So it's important to have a larger # available, among other reasons, for the holidays.[ Oracle ] [ Level 26 ] [ Rank: 241 ]bids
1Just_Ben posted on Industry News at 12:50PM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@pilias_simber,
You are reading the same article as I do. There will be more Wiis than ever, thats whats "unprecedented" means, right? (Just in case my English is to messy on this one)[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
1pilias_simber posted on Industry News at 12:47PM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@pilias_simber,
To clarify, he mentioned the Holiday Season. That means Nov + Dec.
If he just means Dec then they only sold about 750k last year and they're making twice that a month right now.[ Oracle ] [ Level 22 ] [ Rank: 122 ]bids
1pilias_simber posted on Industry News at 12:46PM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@Just_Ben,
Dude, they're selling 1.5 million Wiis/month right now, they don't have to stockpile Wiis to beat last year's numbers, which is all that link is promising.[ Oracle ] [ Level 22 ] [ Rank: 122 ]bids
1Just_Ben posted on Industry News at 12:45PM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@pilias_simber,
You know that last years 2 Million where stockpiled. You just can't upp production for a month (December). Either they have a stockpile or they can only ship those units they produce, and thats about 1.8 Million WW. No they have to have a stockpile.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
1pilias_simber posted on Industry News at 12:41PM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@Just_Ben,
Gee... thats not going to be hard. They shipped a total of 2 million or so last holiday season. They'll do that with current levels of production in 1.25 months, so by the first week in December they'll meet last week's numbers, without increasing the number they're making they will produce "substantially more" Wiis than last year, which is what he's promising by offering 3 million Wiis worldwide, just based on no increased production, compared to 2 million last year worldwide.[ Oracle ] [ Level 22 ] [ Rank: 122 ]bids
1Just_Ben posted on Industry News at 12:28PM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?bids
1pilias_simber posted on Industry News at 12:17PM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?bids
1Just_Ben posted on Industry News at 12:16PM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@pilias_simber,
Well they have a stockpile, but nobody knows how big it is. I think it could be they ship 2 Million to NA in December, maybe to the U.S, but thats my maximum.More or than that seems to insane to me, and I'm no John Lucas.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
1pilias_simber posted on Industry News at 11:59AM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?I suspect that Nintendo is going to make every effort to put out as many Wiis as they can produce, but I also guarantee you there is no way they can produce enough to meet demand, they've been making them for over a year now and have yet to meet demand.
We've also seen a shift in units shipped decreasing the number in Japan and increasing the numbers in the US in an attempt to meet demand, and recently seen an increase in overall Wii's shipped as well.
Even with another increase in shipped Wiis I suspect that we will see an increase in Wiis AND they will still not be able to meet demand.
There is a worldwide demand for Wiis and I really see no way they can keep them in stock well enough to sell 2 million, when they are only producing about 1.5 million worldwide in a month's time and selling out of all of those.[ Oracle ] [ Level 22 ] [ Rank: 122 ]bids
1Just_Ben posted on Industry News at 11:50AM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@feelmyring,
Well, it is never wrong to look at the past and look how other consoles done compared to over the year. Maybe I mad myself not clear enough: I would guess a demand over 3 Million units in December, comparing the Wii to the PS2 you would come up with 2.5-2.8 Million, but I doubt Nintendo can ship that much.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
1feelmyring posted on Industry News at 11:47AM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@Just_Ben,
I've seen that chart, but I'm not sure how directly the PS2 relates to the Wii. There's a couple major differences between them, I think: the Wii is less expensive than the PS2 was (marginally, but importantly), and the Wii is much, much trendier than the PS2 was when it came out. I think your reasoning is right, but maybe not for the right reasons. I think Nintendo will be able to sell what they are able to produce, but I don't know if what they will be able to produce will be able to meet demand.[ Oracle ] [ Level 20 ] [ Rank: 351 ]bids
1Just_Ben posted on Industry News at 11:38AM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@feelmyring,
If you go by the past of the PS2 and compare it to the Wii, Nintendo should be able to sell 2.5-2.8 Million and that assumes that the Wii would not be currently supply constraint. Look here at PS2 numbers and make you thoughts. December is a crazy month and I would guess the able to sell even higher for the Wii. But I doubt they are able to ship so many units.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
1feelmyring posted on Industry News at 11:31AM PST on October 31, 2007. RE: Analyst: Hardware Supply Constraints To Hit Holidays?@Just_Ben,
I'm hearing conflicting things about the supposed supply constraints the Wii is going to have around Christmas. Reggie said there would be one, but then I was talking to the manager of my local Gamestop (who was at their managers meeting in Vegas where Reggie spoke), said they had assurances they'd get a ton of product to move. Since then (three weeks ago), they've had 35 or so Wii's move through their store. Either Nintendo is getting a better handle on their supply issues, or eBay is going to be awash with Wii's come December.[ Oracle ] [ Level 20 ] [ Rank: 351 ]bids
23Just_Ben posted on Industry News at 11:22AM PST on October 31, 2007. Article: Analyst: Hardware Supply Constraints To Hit Holidays?Analyst Colin Sebastian is stating that hardware supply constraints and lower pricing for PS2 and Wii software may pose health risks for the industry's sales numbers. "Holiday hardware demand may outstrip supplies," Sebastian said. "We believe one of the themes from the holiday period could be hardware supply constraints, driven strong demand for Nintendo’s Wii and a shift in Xbox 360 unit sales from 4Q into the September quarter, while Sony’s PS3 and PSP may benefit from lower price points."[ Oracle ] [ Level 21 ] [ Rank: 112 ]
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Um... Nintendo has been constantly working this entire year to increase production. They did it back in March, and again in the Summer. This is their 3rd production increase.