Nintendo Losing Money On Every Wii Not Sold

wiiline.jpgThat's right. Bet you all thought that Nintendo were rolling in the benjamins right now. Yen too, and Euro, and Pounds Sterling. Technically, you'd be right, they are. But consider how much the demand for Wiis outstrips the supply. Then consider that the family walking into a store with $US 250 to spend on a Wii will, when they can't get a Wii, go spend that $US 250 somewhere else, where it won't end up back in Nintendo's back pocket. You could easily argue that scenarios such as that, which are playing out across the globe, are indeed "costing" Nintendo money. How much money? Some analysts put the ballpark figure at around $US 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 $US 1.3 billion. So, Nintendo, you worried?

George Harrison is, though not about the cash. He's more worried about the PS3 and 360:

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.

Oh pish-posh. If you were really worried you'd have started making more consoles when the same thing happened, oh, this time last year.

A Year Later, the Same Scene: Long Lines for the Elusive Wii [NY Times][Image]


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