Topic: The biggest disaster in Nintendo history?

[cbeer]

So what's gone wrong?

Nintendo said for MONTHS they'd have one million systems available for the U.S. launch, with two million by the end of 2006 in North America alone.  Four million worldwide.

The million systems at launch turned out to be 450,000.

They claimed they'd would be able to ship 200,000 systems every week after launch.  After one week, retailers have received ZERO systems.

Nintendo missed Black Friday, the biggest shopping day of the year.  The only retailers with systems available on Black Friday were those who held over systems from the initial launch.

There are now almost 700,000 Wiis missing from Nintendo's promised shipments.  If Nintendo comes up empty next weekend, we'll be getting close to a million.

What happened?  

What disaster destroyed Nintendo's ability to manufacture this machine?  Their entire hype campaign leading up to launch was based on the premise they'd have plentiful supplies (the "four million systems worldwide" number was quoted in EVERY SINGLE ARTICLE).  Some reports even claimed they were far ahead in production.  The ease of manufacturing this system was one of its strong suits, far fewer internal parts than the PS3.

But when launch came, the supplies have been disastrously short instead.  Now Sony is following through on their promise to deliver one million systems to the US by year's end, and the Wii is looking to be produced in fewer numbers than the PS3.

This is the big story of the industry right now, trying to figure out what has gone so badly wrong on Nintendo's end.  Typically it winds up being a single component or chip that has come up in short supply or high in defect rates.  Whatever it is, it's going to slash two million systems off Nintendo's 2006 projections, and nearly a billion dollars off Nintendo's hardware and software sales for 2006.

In other words, it's the biggest disaster in Nintendo history.  Their console division, gasping on life support with 15% market share, was depending on this system to expand that user base, to draw in third parties.  Now, the launch is going to wind up with fewer systems in users' hands than the Gamecube.  Whatever has gone wrong with the Wii, whatever has destroyed their ability to manufacture it, may be a nail in the coffin for Nintendo as a manufacturer of consoles.
 

[wandering]

Hyperbole is fun.  

[BranDonk Kong]

It's only been one week...and they shipped AND sold more Wii systems than Gamecube systems at launch...and they launched with what, 23 games, I believe. They've got 5 weeks to sell 3.5 million consoles worldwide, if they sell 550,000 a week in the US alone, then this will no doubt be achieved QUITE easily.

[Rhoq]

Quote
Originally posted by: cbeer
So what's gone wrong?

Nintendo said for MONTHS they'd have one million systems available for the U.S. launch, with two million by the end of 2006 in North America alone.  Four million worldwide.

The million systems at launch turned out to be 450,000.

They claimed they'd would be able to ship 200,000 systems every week after launch.  After one week, retailers have received ZERO systems.

Nintendo missed Black Friday, the biggest shopping day of the year.  The only retailers with systems available on Black Friday were those who held over systems from the initial launch.

There are now almost 700,000 Wiis missing from Nintendo's promised shipments.  If Nintendo comes up empty next weekend, we'll be getting close to a million.

What happened?  

What disaster destroyed Nintendo's ability to manufacture this machine?  Their entire hype campaign leading up to launch was based on the premise they'd have plentiful supplies (the "four million systems worldwide" number was quoted in EVERY SINGLE ARTICLE).  Some reports even claimed they were far ahead in production.  The ease of manufacturing this system was one of its strong suits, far fewer internal parts than the PS3.

But when launch came, the supplies have been disastrously short instead.  Now Sony is following through on their promise to deliver one million systems to the US by year's end, and the Wii is looking to be produced in fewer numbers than the PS3.

This is the big story of the industry right now, trying to figure out what has gone so badly wrong on Nintendo's end.  Typically it winds up being a single component or chip that has come up in short supply or high in defect rates.  Whatever it is, it's going to slash two million systems off Nintendo's 2006 projections, and nearly a billion dollars off Nintendo's hardware and software sales for 2006.

In other words, it's the biggest disaster in Nintendo history.  Their console division, gasping on life support with 15% market share, was depending on this system to expand that user base, to draw in third parties.  Now, the launch is going to wind up with fewer systems in users' hands than the Gamecube.  Whatever has gone wrong with the Wii, whatever has destroyed their ability to manufacture it, may be a nail in the coffin for Nintendo as a manufacturer of consoles.

First of all - who cares about the PS3? If it means that much to you, join a Sony fanboy site and leave us alone.

Secondly - Where did you get your misinformation? Do you actually pay attention to what you read?

Nintendo never said there would 1 million units available in the United States. What they did say was that 1 million units would be available on launch day for all of NORTH AMERICA (N.A. isn't just the U.S. but Canada and Mexico, too). What they did say is that the majority of the North America launch units would be allotted to the U.S. If the U.S. received the 450,000 Wiis that you claim then that means the other 550,000 were divided among Canada and Mexico (550,000/2 = 275,000 each for Canada and Mexico, giving the U.S. the biggest piece of the Wii pie). It looks to me like Nintendo kept their launch number promise.

[optimisticlimbo]

They definitely kept their promise and they have been delivering more units.  Backwoods towns aren't getting them like the cities, but we are.  You just need to be lucky enough to be there when they come int.  It's not a failure, it's just the demand has vastly outstripped supply.  Also, very few stores actually withheld stock for Black Friday.  Most got more during the week, ie from that 200k shipment, and held them for Friday so Nintendo wouldn't miss Black Friday.

[The Omen]

While I don't agree that this is anywhere near a disaster, I do feel like stores should have a clue as to when they may be getting a new shipment and that falls on Nintendo.  I know a manager at both Circuit City and EB, and both tell me the same thing-"We have no clue when the next shipment will come."  If Nintendo's plan is new shipments weekly, where are they?  

[18 Days]

Most major Australian retailers are reporting pre orders into the HUNDREDS. Your Wiis are being given to the needy.

[BlackNMild2k1]

Just so you know Nintendo has shipped more Wii's and all of them have sold out immediately, including games and peripherals. Almost every store I've been to over the last 2 or 3 days has gotten in more but never seems to know when the next shipment will arrive.

If you want to talk about Disaster.... Ive been to several GameStops while down here in SoCal and the first one I went to I asked if they had any PS3's in stock. The lady said they haven't more had any since launch and wouldn't be recieving anymore until they sell all of the peripherals, so i nother words, no more PS3's until next year(there were plenty of games and controllers on the racks). At the next GS I stopped at, a family was asking about the Wii and PS3, the clerk quickly dismissed the Wii saying that they were out of stock(and most of the games & all of the peripherals) but started trying to push the PS3. What it came down to was that the only PS3 that they had in stock was a 20Gig and no one wanted to buy it. My guess is the 'no wifi' was the deal breaker.

[trip1eX]

No one on the internet really knows how many units Nintendo sold at launch.  There has been new shipments to stores already.  Best Buy got some new ones in today and, at least near me, BB was sold out before they opened for business this morning.  And any numbers given by Nintendo as to how many they can manufacture are rough estimates.  Even they don't know for sure.  So don't get your panties in a twist yet.  

[OverHeat]

Well, I can't speak for the world, but my store received extra Wiis for black Friday...and they were gone quicker than we opened...

[Smash_Brother]

From the sounds of things, the Wiis are arriving and leaving faster than anyone can count them.

[NWR_pap64]

Uuuuuuuh...disaster?

Consoles are hard to find, sure, but believe me when I say this is FAR from the disaster you are claiming it is.

Had there been a massive amount of defective units at launch, the controllers sucked big time and the games less than stellar, then it would be a disaster.

All console launches are not without their problems, but the Wii launch isn't that bad.

I suspect someone is being either bitter about not getting a Wii at launch or is being a troll...

[Magik]

Disaster?  This happens at EVERY console launch.  This isn't anything new.

Even if Nintendo had 4 million at launch, it would have still sold out with retailers not knowing when they will get their next shipment.

Hardly a disaster.

[SeaBass]

a total DISASTER indeed! just kidding. nintendo did ship a million wiis to north america. but north america aint just the U.S. Its more like, the U.S., Canada and Mexico.

[Egregius]

I could be wrong, but I am hearing that BestBuy is holding units to be distributed every Sunday.  So in other words they are being savvy and getting people into their stores every week, or maybe this shipment to BestBuy was a one time occurance.

[BlackNMild2k1]

I just called 3 different Best Buys, and this is what they said they recieved today:
1) had 60 in, all sold out within 45 minutes of store opening
2) had 56 in, all sold out within 45 minutes of store opening
3) had 30 in, but had people camping out since last nite to pick them up this morning when the store opened.

There are still people camping out for the system 7 days after it launched? This is a Disaster, a time... or should I say a Day of Crisis indeed. Whatever shall Nintendo do?  

[phantomspirit]

I work at Best Buy so I have a good idea of what goes on. Say there's an ad for the coming Sunday that says a min. of 15 units per store....then yes we will hold those units. If there is no ad and we receive those units sometime in the week, then we will promptly put them out in the sales floor. I'am lucky in that I work in the receiving dept. and I get to see the ad a few days ahead of time  Thus far my store has sold 105 units since its launch---that's pretty damn good to me.  

[31 Flavas]

Wheee, Grenades can be fun. I should know, i've thrown a few. But, I wouldn't put much effort in replying unless cbeer makes a return. While his profile is hidden, a quick author search shows this thread post as his only post. So I wouldn't get to discorded over the thread topic.  

[BigJim]

The 1 million number was an estimate from Nintendo of Canada's GM back in September.

I don't recall any company's launch shipments ever meeting targets, but as recently as launch day Reggie expected 1 million in actual sales by mid December and 2 million by mid January (not including international sales).

So as of a week ago, they're off their year end target by around 2 weeks.

They're still expecting to have 6 million total shipped by end of March (as does Sony). If Sony actually manages to meet their goal, and I doubt they will, they're still virtually tied based on availability.

It's a sprint. This holiday doesn't mean much of anything anyway. The real interesting battle is a year away.  

[Pale]

Overly successful system launch = biggest disaster ever for Nintendo?

Hah.  You're awesome.

[BlackNMild2k1]

The only real disaster here is that I really want the Wii, I have someone who really wants to buy it for me, and every f#ckin store is sold out within minutes of opening and I can't get one.

But I have one more chance, there is a Circuit City near here that said they got a shipment of boxes in, but hasn't unloaded them nor do they know whats in them. I'm about to go hang out over there and wait for them to open the crates to see whats in the boxes.

[Kairon]

Oh darn, I thought this thread would be about Hiroshi Yamauchi's love motel chain back in the 50's...

~Carmine M. Red
Kairon@aol.com

[Ceric]

Personally I think that not being able to transfer you saves is the biggest disaster.  (At least it was for me.)

[xanrastafari]

This is perhaps the stupidest thread I've read in a long time.  A well written and very poorly informed stupid thread.

[The Traveller]

Hey maybe some1 can clear this up, I heard somewhere that you cant load a save file on a friends Wii through your SD card.