Nintendo Wii still on top despite shortages
Last November, the Nintendo Wii changed the way we play video games. The unusual remote control allows players to interact physically with the console, “throwning” pitches, “hitting” tennis balls, and getting us up off the couch. The game console has attracted a diverse fan base, from the youngest of children to the elderly. The Wii was wildly popular last holiday season, and the demand for it has not yet abated. This year, crowds once again lined up at the crack of dawn outside electronics stores around the country, and Nintendo has been unable to build enough Wiis to satisfy the public.
Nintendo claims that they are producing the Wii at top capacity, but a year after the release, it still sells out almost immediately upon arrival at retailers. Prior to the Christmas holiday, some eager consumers were “stalking” UPS trucks and following them from store to store in the vain hope that they were delivering some of the rare consoles. In a recent New York Times article, Nintendo’s senior vice president of marketing George Harrison was quoted as remarking, “It’s [the shortage] a good problem to have. We do worry about not satisfying consumers and that they will drift to a competitor’s system.” Some might find his comment disingenuous and unsympathetic. Indeed, industry analysts are suspicious that Nintendo is afraid to produce too many of the game console because the public may lose interest.
As for competitors, Sony’s Playstation 3 has not generated the same kind of buzz that the Wii has, selling just 2.4 million units since launch one year ago, compared to the Wii’s 6 million sales. Xbox 360, which was released in November of 2005, has sold some 7 million units, which would make Wii the clear winner in the long term, if they could keep shelves stocked. Retailers and analysts estimate that Nintendo has lost approximately $1 billion in sales this holiday season, which does not include the sale of games that would accompany those unsold units. It would be a mixed blessing to intentionally keep the Wii exclusive; while it may generate more buzz, it definitely hurt the company’s bottom line in 2007.
One solution which Nintendo announced was a certificate system through gaming retailer GameStop. For one day only, Friday Dec. 21, customers were able to prepay for a Wii at GameStop and pick up their units in January when they become available. This program will help Nintendo recoup some of the losses it suffered when some consumers bought PlayStations and XBoxes out of frustration. One blogger, though, remarks on the lousy impression this might have made to children on Christmas morning: “The least they could have done is thrown in a T-Shirt that read: ‘My Parents Waited Too Long to Shop for Me So All I Got for Christmas was this Shirt and a Lot of Empty Promises.’”
While I must admit that I have never had the magical experience of playing a Wii game, I can understand all the buzz surrounding this toy, even if it is due to nefarious marketing techniques or woeful sales estimates. It’s unique interface allows users to interact on a more physical level with the games they play, and that’s a very appealing premise. I love the idea that kids are jumping, swinging, and moving while they play video games. The other remarkable thing about the Wii is that it’s the first console to reach out to the non-adolescent male user. Indeed, my own mother was singing the praises of the Wii, which she plays regularly with friends. The list of games supported by Wii is diverse enough to appeal to a wide variety of age groups, and the interface allows for social interaction. This appeal is not likely to peter out any time soon. Let’s hope Nintendo can improve production for the holiday season next year. Otherwise, I suspect “Wii-mania” will become an annual tradition.
By Haley January Eckels