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Article

Title: A Long, Long Wait for a Wii

Author: Edwards, Cliff Article Type: Company
Source: Business Week, n4063 p30(2) Publication Date: Dec 17, 2007
  ISSN: 0007-7135
URL of Publication: http://www.businessweek.com

A shortage of Nintendo Wii consoles over the holidays is prompting long lines and headaches for those looking to give one as a gift. Amazon.com's British site sold out its stock of the consoles in ten minutes. Lines form every day in front of Manhattan's Nintendo World Store. Some have argued that the shortage is simply a marketing ploy aimed at generating hype. Others claim the problem is the result of bad planning on the part of Nintendo. Nintendo is facing supply difficulties and has been reluctant to employ a second or third contract manufacturer for the Wii. The company claims it has had difficulties forecasting demand, and is paying more for faster airfreight for the Wii, as well as shipping directly to retailers. The company points out that the shortage does not benefit them and that Sony's Playstation 3 outsold the Wii in Japan in November. One result of the shortage is a secondary market for the Wii online, in which customers buy multiple consoles and sell them for a profit on the Internet. This generates hype but not cash for Nintendo, and the company has not lowered the price of the console. Nintendo is performing a balancing act by keeping supplies tight. If they push this too far, consumers will feel manipulated and grow angry.

Companies:
Amazon.com Inc Nintendo of America
Sony Computer Entertainment America (SCEA)

Products:
Amazon.com Game Stations
PlayStation 3 Wii

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