Analysts unconcerned about Wii shortage |
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Industry analysts Ed Barton and Jesse Divnich appeared unconcerned about Nintendo's announcement regarding the Wii shortage this holiday season. According to Barton and Divnich, the supply deficit won't deal too much damage to Nintendo's dominant market position. Furthermore, they noted that the Wii is still outselling its competitors despite the shortage.Ed Barton and Jesse Divnich also noted that Microsoft and Sony's price drops for their respective consoles won't dislodge Nintendo from its dominant market position either.
The reason, they said, has to do with the difference in the consoles' target demographics. To illustrate their point, Barton and Divnich compared the forty casual titles scheduled for release on the Wii during the fourth quarter of this year, to the five titles each for the Xbox 360 and PS3. According to Barton, this supposedly reflects the belief of third-party publishers that the Wii is the platform for the more casual, less hardcore gamers.
The two analysts also remained skeptical about the claim that the shortage was a result of Nintendo deliberately withholding stock to maintain a public image of desirability. Barton noted that with the intensely competitive nature of this year's holiday season, it's difficult to believe that Nintendo or any of its competitors would resort to such tactics.
Ed Barton also believed the shortage to be a short-term issue, given Nintendo's experience in determining consumer demand and in managing production volumes. Jesse Divnich, on the other hand, speculated that Nintendo might adjust the manufacturing investment in the short term, and suggested that "Nintendo might be willing to take a small hit on profit this season to assure that units are manufactured and shipped quicker to keep up with demand."
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