Author Topic: Reggie on the Wii Supply Situation  (Read 10323 times)

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Offline WindyMan

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Reggie on the Wii Supply Situation
« on: December 14, 2007, 04:58:23 AM »
Major retailers will have a big supply release this weekend; GameStop will offer a rain check program for those who still can't get one.  Also, what about Wii online voice chat?
 http://www.nintendoworldreport.com/newsArt.cfm?artid=14985

 In a conference call this morning, Nintendo President Reggie Fils-Aime explained what Nintendo was doing about the tight supply issues of the Wii, as well as detailing a new program aimed at making sure prospective Wii owners having difficulty finding the elusive console will have “something to put under the tree" this holiday.    


During the call, Reggie explained why the Wii was so hard to find, and what Nintendo is doing about it. To that end, Reggie said that major retailers, including Sears, Kmart, Target, Circuit City, and Best Buy, will be releasing a big supply of Wii consoles to coincide with this Sunday's newspaper ad circulars. Wal-Mart will also have a "massive" supply of systems available throughout next week. Rumors have been flying about retailers hording Wiis, and now that Nintendo has confirmed there's a big wave of them ready to be unleashed, it seems as if those rumors are true.    


To help meet the holiday demand, Nintendo has tripled its distribution workforce.  However, Nintendo is only still outputting 1.8 million Wiis a month (more than half of that figure was sold in the U.S. during November), so that means the Wii consoles available are just getting to store shelves more quickly.  Although the production level is double what it was when the console launched last year, the demand for the Wii hasn't let up at all since then.  Nintendo has no plans to increase its current rate of production.    


Reggie said Nintendo is not shipping in consoles via air freight to help cut down on transit time from Nintendo's Asian production centers to North America, like Sony has been known to do.  Instead, he said that Nintendo is doing "unique things" to move consoles to the States.  "We are expediting product to the Americas," he said.  Reggie was also asked whether or not there were any plans to manufacture the console in the United States, to which he said there were not.    


As a part of Nintendo's efforts to make sure people can give the gift of Wii in time for Christmas, Nintendo announced a partnership with games retailer GameStop called the Wii Rain Check program. The program will let consumers pre-purchase an out-of-stock Wii at full price and receive a rain check for the console guaranteed for delivery in January. Rain checks will be limited in supply, although Reggie noted there will be "many tens of thousands of rain checks available," divvied up among the retail chain's 3,000+ stores. The program begins December 20th.    


The talk with Reggie touched on the success and supply line of the Nintendo DS. Even with its massive 1.53 million unit sell-through last month, the DS should not see any significant supply problems, according to Reggie.  "We do not have reported shortages of DS," he said. "As we get to the 24th of December, inventory will be quite tight.  There may be spot shortages at some retailers, but consumers should be able to find them."    


Though the conference call focused on supply issues, Reggie did field some questions about some of Nintendo's other perceived shortcomings—namely, third party support and Wii online functionality.  The lack of third party success is really on the publishers themselves, if Reggie's words are to be believed.   He said that every system has "a range of quality" in its game library, and publishers are working on best using the Wii.  "Those publishers who do a great job enjoy fantastic sales," he said.    


Nintendo insists that things will get better.  "As publishers understand how to take advantage of the unique aspects of the remote you will see better and better games," Reggie said. "Nintendo is working hand in glove with publishers to share with them our level of expertise with the technology."    


Finally, Reggie was asked about Wii's online functionality—or lack thereof in certain areas.  Particularly, will there ever be online multiplayer functionality in Virtual Console games?  Probably not, as Reggie said Nintendo "does not anticipate" there being this functionality in the future.  Online voice chat is another thorn in Nintendo's side, and to that, Reggie responded, "our system has the capability for online voice chat.  What it comes down to is finalizing the peripheral."    


Wii owners looking for this feature in their online games may have reason to be optimistic.  Reggie finished answering the question saying, "I would not be surprised to see that capability come to this system."

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Offline Kairon

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RE: Reggie on the Wii Supply Situation
« Reply #1 on: December 14, 2007, 05:15:18 AM »
Wow, I wonder how they're able to guarantee the raincheck for January... maybe GS just won't sell any consoles to walk-ins all of February?
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Offline Pale

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RE: Reggie on the Wii Supply Situation
« Reply #2 on: December 14, 2007, 05:36:02 AM »
I'm pretty confident Nintendo said "sell a maximum of this many and we'll make sure you get them."

Seeing as this is officially sponsored by Nintendo in a way, I see no reason to doubt the guarantee.
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Offline GoldenPhoenix

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RE:Reggie on the Wii Supply Situation
« Reply #3 on: December 14, 2007, 05:39:07 AM »
::predicts a Crimm post::
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Offline Crimm

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RE:Reggie on the Wii Supply Situation
« Reply #4 on: December 14, 2007, 05:45:49 AM »
Quote

Originally posted by: GoldenPhoenix
::predicts a Crimm post::


jerk.

Might as well say it: It should have never come to this
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Offline NeoThunder

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RE: Reggie on the Wii Supply Situation
« Reply #5 on: December 14, 2007, 06:00:29 AM »
demand will still not be met.

It's going to be april or may before the supply can meet demand
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Offline Kairon

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RE:Reggie on the Wii Supply Situation
« Reply #6 on: December 14, 2007, 06:03:16 AM »
Quote

Originally posted by: NeoThunder
demand will still not be met.

It's going to be april or may before the supply can meet demand


That's what we said last year...
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Offline Smash_Brother

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RE: Reggie on the Wii Supply Situation
« Reply #7 on: December 14, 2007, 06:18:03 AM »
"Preordering is stupid, SB and GP! You can walk into a Wal-mart the next day at noon and get a Wii!"

Har har har...
"OK, first we need someone to complain about something trivial. Golden or S_B should do. Then we get someone to defend the game, like Bill or Mashiro. Finally add some Unclebob or Pro666 randomness and the thread should go to hell right away." -Pap64

Offline Kairon

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RE: Reggie on the Wii Supply Situation
« Reply #8 on: December 14, 2007, 06:19:24 AM »
So a year later, the best way to get a Wii is STILL to pre-order.
Carmine Red, Associate Editor

A glooming peace this morning with it brings;
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Offline MaryJane

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RE:Reggie on the Wii Supply Situation
« Reply #9 on: December 14, 2007, 06:48:53 AM »
Quote

Originally posted by: Crimm


Might as well say it: It should have never come to this


y not? how is this not a good thing from a business perspective? the mere fact that the Wii constantly sells out will intrigue more people to buy it. Also who in the hell couldv'e predicted this kind of demand? Would the PS3 shipments be able to keep up with the Wii's demand? I don't know how you'd figure that out, but I doubt it.  
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Offline Plugabugz

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RE: Reggie on the Wii Supply Situation
« Reply #10 on: December 14, 2007, 07:15:13 AM »
Maybe they can redirect/withdraw idle stock from Germany and send it to the UK?

You know things are tight here when people are going to France to get one.

Offline that Baby guy

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RE: Reggie on the Wii Supply Situation
« Reply #11 on: December 14, 2007, 07:33:28 AM »
Anybody sign up for those Nintendo email things?  I did, and a few days ago, I got an email from Nintendo saying I should trade in my old DS or GBA SP for a new DS Lite to save money.  I'm pretty upset about it, since GameStop is something that causes developers, publishers and the three big companies to lose money.  Basically, besides game promotions, I don't think Nintendo or any other company should have anything to do with them, since they sell used games and whatnot.

I certainly think this deal should have been made with a less disgusting company, and I hate to have received that promotion email, as well.

Offline Crimm

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RE:Reggie on the Wii Supply Situation
« Reply #12 on: December 14, 2007, 07:37:04 AM »
Quote

Originally posted by: Smash_Brother
"Preordering is stupid, SB and GP! You can walk into a Wal-mart the next day at noon and get a Wii!"

Har har har...


How long till tha quote becomes unfunny?
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Offline UncleBob

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RE: Reggie on the Wii Supply Situation
« Reply #13 on: December 14, 2007, 07:45:45 AM »
Never!  When Wii2 comes out, I'm sure the quote will be pulled out again.
Just some random guy on the internet who has a different opinion of games than you.

Offline Crimm

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RE:Reggie on the Wii Supply Situation
« Reply #14 on: December 14, 2007, 07:55:08 AM »
The inability to sell a Wii to everyone that wants one is bad.  Period.

"Some analysts put the ballpark figure at around USD$1 billion. And that's just on hardware, and that's just for the holiday season. Other analysts, like James Lin from MDB Capital Group, put it even higher, somewhere around $1.3 billion. So, Nintendo, you worried?"

Quote

Originally said by: George Harrison
It's a good problem to have... [but we] do worry about not satisfying consumers and that they will drift to a competitor's system.


Nintendo needs to sell the Wii systems now.  They need to have powerful lead in console sales and force the continued investment of third parties.  In the end it is games drive hardware, not hype.  This hype will fade, so its better to sell the systems NOW rather than say "hype will sell them later."  
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Offline Smash_Brother

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RE:Reggie on the Wii Supply Situation
« Reply #15 on: December 14, 2007, 08:30:10 AM »
Quote

Originally posted by: Crimm
How long till tha quote becomes unfunny?


Never?

In all seriousness, I never blamed the staff, since even I didn't predict the amount of demand the Wii would see. I personally preordered just because I had the store credit kicking around, not because I feared calling dibs would be necessary.
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Offline Crimm

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RE:Reggie on the Wii Supply Situation
« Reply #16 on: December 14, 2007, 08:33:07 AM »
I preordered cuz I expected it would be hard for the first few shipments.  You know, I didn't expect Nintendo to do any better than any other console handling launches.

Also...I was out of town on launch day morning.
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Offline Enner

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RE: Reggie on the Wii Supply Situation
« Reply #17 on: December 14, 2007, 09:50:59 AM »
I still have yet to see on box on a store shelf or behind a glass
Oh well, no rush. It's a certain purchase since I'll need my Smash fix.

Offline MaryJane

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RE:Reggie on the Wii Supply Situation
« Reply #18 on: December 14, 2007, 09:59:45 AM »
Yes except even if that 40yr mom decides to buy a 360 for some reason, is it really going to satisfy their desire for the Wii? Or are they just going to trade it in when they realize it's neither the games nor experience they were looking for.

I think of 3 kinds of ppl who buy a Wii (casual gamers, nintendo fanboys(using it loosely i don't just mean petards who buy with no regard just cuz nintendo said to), and hardcore gamers who played a Wii and were convinced it was real) aren't going to be deterred by the fact that they can't find one, and not for nothing, but almost 1million people mananged to find one. I see that as, as long as the demand has been there for a solid year without wavering, has there been any proof whatsoever that selling out has caused Nintendo to miss one sale? NOPE!

And uh, guess what, the games are going to sell the consoles when the "hype" runs out. I don't think hype has ever driven Wii sales, it's been word of mouth, and experience, as long as those two things are around (like until the imminent Nuclear Holocaust) I think the Wii will do just fine.

Again I ask, who could have predicted this type of success for a company that was laughed at for the GC which was a good system in itself, just without much support. I mean hell, didn't the 64 outsell the GC? Was Nintendo really going to throw huge amounts of money into production with such a radical product? What if it hadn't been so well recieved, granted the DS has made so much money it might not have mattered too much, but it's not smart business to rely on one product to push another one that's sinking. (hem hem Sony hem hem)
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Offline GoldenPhoenix

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RE:Reggie on the Wii Supply Situation
« Reply #19 on: December 14, 2007, 10:04:42 AM »
Quote

Originally posted by: Smash_Brother
Quote

Originally posted by: Crimm
How long till tha quote becomes unfunny?


Never?

In all seriousness, I never blamed the staff, since even I didn't predict the amount of demand the Wii would see. I personally preordered just because I had the store credit kicking around, not because I feared calling dibs would be necessary.


I knew all along!
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Offline Crimm

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RE:Reggie on the Wii Supply Situation
« Reply #20 on: December 14, 2007, 10:48:56 AM »
I highly disagree.  Hype buys wont happen a year from now.  The system shouldn't be selling on hype now, it should be selling on a smashing holiday lineup.
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Offline Kairon

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RE: Reggie on the Wii Supply Situation
« Reply #21 on: December 14, 2007, 10:58:09 AM »
Who KNOWS what it's selling on now, it's selling WAY TOO MUCH to get any good insight.

In other words... why it's selling right now is less of a problem than how much it's selling.

Now... software... that deserves an examination of why it's selling (or not...).
Carmine Red, Associate Editor

A glooming peace this morning with it brings;
The sun, for sorrow, will not show his head:
Go hence, to have more talk of these sad things;
Some shall be pardon'd, and some punished:
For never was a story of more woe
Than this of Sega and her Mashiro.

Offline Mario

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RE: Reggie on the Wii Supply Situation
« Reply #22 on: December 14, 2007, 11:32:58 AM »
And then Smash Bros and Mario Kart will come out. LOL

Offline pyrokamileon

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RE:Reggie on the Wii Supply Situation
« Reply #23 on: December 14, 2007, 11:33:19 AM »
I didn't think I would need a preorder originally either but something about the idea of getting a preorder for the new Nintendo console somehow made me feel special and I knew I wanted to get it.  Then again, seeing how hard it was to get a preorder should have told me something...

You know, these rainchecks basically ARE preorders...  I wonder if Nintendo is the first company to have to reissue preorders a year after release?
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Offline Morari

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RE:Reggie on the Wii Supply Situation
« Reply #24 on: December 14, 2007, 11:39:56 AM »
CENSORED FOR YOUR PROTECTION
« Last Edit: January 12, 2011, 10:42:18 AM by Morari »
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