Nintendo holding back Wii due to weak US dollar?
An interesting, if perhaps somewhat far-fetched, idea has emerged for just why North American gamers are still struggling to find a Nintendo Wii console with the greatest of ease, nearly a year and a half after the innovative console’s launch.
Over on the Dallas News website there is an article discussing just how many people have desperately tried to explain just why Nintendo is failing to provide sufficient levels of Wii stock to arguably the largest gaming territory in the world. In a last ditch attempt to offer up a new suggestion, though, in swooped popular Wedbush Morgan analyst Michael Pachter to state his strong opinions on the matter. So who or what is to blame for the current situation? Well, according to Mr. Pachter it is none other than the currently very weak US Dollar.
“With a weak dollar, foreign companies that sell their goods in the U.S. for dollars and then convert those dollars to their native currencies get a smaller profit than if they sell their products in countries with strong currencies of their own (such as Europe with the euro). In other words, Nintendo makes a bigger profit on Wiis sold in Europe than on Wiis sold in the U.S.“So Nintendo, Mr. Pachter said, has been behaving perfectly rationally by sending excess Wii consoles to Europe to satisfy the more profitable consumers there.”
Well, that explains it then…or does it? Mr. Pachter believes so and reckons that the situation will indeed be changing in the near future as European demand begins to stabilise in the coming months:
“But now that demand in Europe is subsiding to normal levels, those surplus consoles will be redirected to American gamers, Mr. Pachter said, and the Wii should finally become more plentiful in the States later this year. That jibes with the time frame GameStop laid out for when it expects the Wii to become easier to find in the U.S. Mr. Pachter’s assessment makes a lot of sense to me, and it explains why Nintendo has been so reluctant to account for the Wii shortage. No one wants to hear that they’re second-class customers, but that’s exactly what we American gamers are right now.”
Somebody should point out here that the Wii is going from strength-to-strength right now in Europe and will only get stronger with the likes of Mario Kart Wii out in just over a week, Wii Fit coming later in the month and Super Smash Bros. Brawl due sometime in the summertime (with any luck). And that is not even mentioning the Third Party support, which seems to be picking up considerable steam as of late, with the likes of Pro Evolution Soccer 2008 storming up the charts as developers begin to make better use of the Wii’s motion control set-up.
What are your thoughts on the matter, though? Do you feel Nintendo would be as foolish as to toy with gamers’ emotions by purposely pouring more hardware units onto the territory with the strongest currency, whilst leaving the rest of its fans to suffer shortages? Be sure to air your thoughts by posting below…









Why should they? According to this story, Nintendo’s currency is pretty damn strong these days
7 Video Game Currencies Stronger than the US Dollar
http://www.maxim.com/7Vid...ollar/articles/22332.aspx
Haven’t we had enough with the conspiracy theories yet?
Nintendo sells EVERY WII THEY MAKE. There are no extra Wiis because there is still a ridiculous amount of demand. Last I read, they were making somewhere around 1.7-1.8 Million Wiis per month and selling every single one of them.
They will be easy to find when (if?) they ever catch up with demand.
Also, from other stories I’ve seen recently, they do seem to be catching up with demand in the US, finally.
The average resell prices on eBay and Craig’s list have been dropping down fairly close to the retail price…once there’s no profit in it, the scalpers will stop hoarding them, and there will be more available for the rest of the buying public.
BTW, if Microsoft or Sony had as much demand for their consoles as Nintendo has for it, they’d behaving shortages too.
Here’s a sales comparison that shows exactly how the consoles have been selling for the last year:
if you can’t see how this “shortage” has been, at least partially, created by nintendo, you a truly lacking in tech savvy. keep your ear to the ground, but don’t get run over.
the wii is a LAST GEN CONSOLE. do you have any idea how much more is involved in putting together a 360 or a ps3? i mean look at the size of the wii. it is no bigger than a dvd rom, how much tech to you think they stuffed in there? look at the graphics… they are five years old. it is a different story, and they could be cranking out wiis.
not that i am saying the shortage has anything to do with currency fluctuation, but there is no doubt that the topic came up in conversation by nintendo execs.
Woops. Let’s see if that link makes it this time:
http://www.vgchartz.com/h...mp;end=39537&weekly=1
Sounds pretty reasonable to me. No conspiracy theory here. Of course Nintendo is making tons of these things, and selling every one, but the dollar has dropped in value a whole lot since pricing was set on the Wii, and it makes sense that the least profitable markets would be last in line when there’s a finite amount of product.