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Nintendo Breaks Wii Sales Record, Raising Concerns Over Supply

Nintendo sold more Wii consoles last week than in any other week in the console’s history, but that high demand could mean low supply for the holiday season. Even Nintendo of America’s president couldn’t find a Wii on the store shelves he browsed.

Digital Journal — To say Nintendo Wii is selling briskly is an understatement: Last week, Nintendo sold 350,000 Wii consoles during the Thanksgiving holidays, even when many stores were closed. It’s the best week for Wii yet, surpassing the 300,000 units sold the previous week.

The company is on track to sell 17.5 million Wiis by March 31, 2008. Last fall, Nintendo execs estimated they would sell 14.5 million Wiis.

Nintendo is producing close to 1.8 million consoles per month, but its manufacturers cannot increase production again, Nintendo of America president Reggie Fils-Aime told AP.

While checking Wii supplies at stores such as Wal-Mart, Target and Best Buy in Pennsylvania and Washington, even Fils-Aime came up empty.

He told reporters: “I couldn’t find a single Wii system on the shelves — literally as I was walking into a Wal-Mart at 11 a.m., someone was walking out with the last one. Consumers are buying every game we can put into the system.”

Fils-Aime also dismissed rumours that Nintendo was shortchanging supply as a sales tactic. He said: “A shortage benefits no one. We’re disappointed. This was all about how we didn’t accurately estimate demand. We need to be more bullish about the potential for the Wii.”

Judging by the Wii’s popularity, Nintendo should ramp up production in order to handle the Christmas rush. There’s nothing more frustrating than being excited about a new technology and having trouble even buying it (Amazon knows all about this).

It’s all well and good for Nintendo to find success with its Wii console. But in order to maintain brand credibility and strong customer service, the company should meet demand. Otherwise, gaming fans could look elsewhere.

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